S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00.pdf¶

来源: S4HANA ACM 蓝图 | 页数: 162 | 提取日期: 2026-06-25

--- 第1页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 1 of 162

Global Blueprint

CTRM Trade Control

--- 第2页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 2 of 162

Document Information

Project Name S/4HANA Transformation Project Document Name S4_P2_ACM_PR05_Blueprint_Trade Control Version V1.00

Revision History

Version Effective Date Author Description/Reason for Change V0.01 16 September 2025 Vidhyadhar Mhapsekar FX and Derivatives V0.02 02 December 2025 Sneha Sripadaraja Version for DCW Session V0.03 05 December 2025 Sneha Sripadaraja Virtual Crush V0.04 11 December 2025 Sneha Sripadaraja Post-Session DCW Updates V0.05 23 January 2026 Vidhyadhar Mhapsekar Post-Session DCW Updates FX & Derivatives Journal Postings V0.06 10 February 2026 Vidhyadhar Mhapsekar Updates for India Solution New Approach for FX Exposure Mgmt (to resolve design conflict with S4 implementation) V0.07 28 February 2026 Nabil Zaky Hygiene Updates V0.08 02 April 2026 Shalabh Jain Additional Information Data Source and how to run reports V0.09 08 April 2026 Shalabh Jain Additional Information on Batch Valuation V0.10 02 June 2026 Vidhyadhar Mhapsekar Shalabh Jain Nabil Zaky Additional Information based on feedbacks V1.00 17 June 2026 Nyoman Arya Wardana Final version for sign off

Document Objective • Provides the overview of the process area covered in this document and describes the Business Process Hierarchy (BPH) up to Level 4 (Activity).
• Describes key business requirements gathered during workshops with GAR Business Process Leads and key business users.
• Outline the solution and system design in SAP S/4HANA to address the business requirements in respective process area.
• This document serves as the global blueprint template to be used as the basis for S/4HANA implementation project

--- 第3页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 3 of 162 TABLE OF CONTENTS 1 BUSINESS PROCESS OVERVIEW .............................................................................................................................. 4 1.1 HIGH-LEVEL PROCESS OVERVIEW .................................................................................................................................. 4 1.2 BUSINESS PROCESS HIERARCHY (BPH) AND ITS APPLICABLE BU ......................................................................................... 7 2 KEY DESIGN DECISIONS .......................................................................................................................................... 8 2.1 INVENTORY VALUATION .............................................................................................................................................. 8 2.2 REALIZED P&L REPORT ............................................................................................................................................... 9 2.3 VIRTUAL CRUSH REPORT ........................................................................................................................................... 10 2.4 FX & DERIVATIVES TRADE AUTOMATION...................................................................................................................... 11 2.5 FX HEDGE MANAGEMENT ......................................................................................................................................... 13 2.6 FX SETTLEMENT ...................................................................................................................................................... 14 2.7 MARKET DATA IMPORT ............................................................................................................................................. 15 2.8 COMMODITY DERIVATIVE ORDER MANAGEMENT ........................................................................................................... 16 2.9 COMMODITY DERIVATIVE BROKER RECONCILIATION ....................................................................................................... 17 2.10 BROKER P&L RECONCILIATION ................................................................................................................................... 18 3 SAP SOLUTION BLUEPRINT ................................................................................................................................... 19 3.1 COMMODITY POSITION AND P&L REPORTING ............................................................................................................... 19 3.1.1 Highlighted Key Business Requirements ..................................................................................................... 19 3.1.2 Business Process Flow ................................................................................................................................. 27 3.1.3 Solutioning .................................................................................................................................................. 29 3.2 FX & DERIVATIVES MANAGEMENT .............................................................................................................................. 61 3.2.1 Highlighted Key Business Requirements ..................................................................................................... 61 3.2.2 Business Process Flow ................................................................................................................................. 67 3.2.3 Solutioning .................................................................................................................................................. 71 4 COUNTRY SPECIFIC SCENARIO ............................................................................................................................ 103 4.1 VIRTUAL CRUSH ..................................................................................................................................................... 103 4.1.1 Highlight Key Business Requirements ....................................................................................................... 103 4.1.2 Business Process Flow ............................................................................................................................... 105 4.1.3 Solutioning ................................................................................................................................................ 107 5 APPENDIX .......................................................................................................................................................... 113 5.1 REQUIREMENT LIST ................................................................................................................................................ 113

--- 第4页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 4 of 162 1 Business Process Overview 1.1 High-Level Process Overview The diagram below illustrates the end-to-end processes within the Commodity Trading & Risk Management domain. This document specifically focuses on the Trade Control group, outlining the key activities involved in the seamless execution of Commodity Trading & Risk Management.

Figure 1.1 Business Process Hierarchy for CTRM

This document is created at L2 level, which is Trade Control. Below diagram shows high level processes which are covered within Trade Control.

Figure 1.2 - Business Process Flow for Trade Control Table 1.1 - Trade Control Process Overview Process Description Trade Control covers end-to-end processes for these areas: • Commodity Position and P&L Reporting • FX & Derivatives Management The main objective of Trade Control process is to be able to process the trades captured from Commodity Physical operations as well as process trades from FX & Derivative operations. This also supports generation of operational reporting and management reporting.

Commodity Position and P&L Reporting

--- 第5页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 5 of 162 The End-of-Day (EOD) Mark-To-Market (MTM) and Profit & Loss (P&L) reporting is prepared based on physical and derivative positions also considering market data such as prices of Commodity Futures.

FX & Derivatives Management Supported processes include: • FX Trade Creation • FX Trade Confirmation • Commodity Derivative Trade Creation • FX Exposure Management • FX Hedge Management • FX Exposure Reconciliation • FX Settlement • NDF Fixing Date Determination • NDF Settlement Amount Determination • Commodity Derivative Order Management • Commodity Derivative Broker Reconciliation • Broker P&L Reconciliation • Market Data Import.
Key Changes Commodity Position and P&L Reporting These reports were collated and managed manually by the trade control Team. In SAP ACM this will be part of the Standard Risk Analytics applications.

Once the key parameters are configured and maintained in the SAP system, the reports will be updated automatically.

FX & Derivatives Management Key changes in the area of FX include straight through process based on SAP S/4HANA. Collection of FX exposures is also system based though SAP Treasury and Risk Management.

Key changes in the area of Commodity Derivatives include end to end process based on SAP S/4HANA. The broker reconciliation process will be automated via use of SAP Broker Reconciliation solution. The P&L preparation and attribution (which is highly manual process now), will be system based.

--- 第6页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 6 of 162 Table 1.2 – Virtual Crush for Singapore Process Overview Process Description

The Soybeans Physical Report provides a one book P&L view across soybean purchase, crushing/refining, and sales of SBM, CSBO, and RSBO.

Trade Control performs daily MTM using CSBO prices to calculate unrealized P&L, accepting temporary variance versus RSBO to avoid daily revaluation of multiple RSBO contracts.

At month-end, the CN team provides actual production costs, which SG Trade Control books as a one-time adjustment to offset unrealized P&L and arrive at realized soybean P&L. Key Changes Virtual Crush Report As compared to as-is where it is a completely manual process, Virtual Crush now is a Single Report to show end to end information of the ACM Purchases of the raw materials, production order information converting the raw materials to Semi-finished and Finished materials and ACM Sales of the Semi-finished and finished materials.

--- 第7页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 7 of 162 1.2 Business Process Hierarchy (BPH) and Its Applicable BU This document provides the solution for Trade Control process group with all its detail process and activity described in this section.

BPH L1 (Process Category) Commodity Trading & Risk Management BPH L2 (Process Group) Trade Control

Table 1.3 – Applicable BU for Trade Control 3.4 Trade Control ID SG MY CN IND PK EU LATAM US Oleo Sugar 3.4.1 Commodity Position and P&L Reporting

3.4.1.1 Commodity Position and P&L Reporting Y Y TBC
TBC
TBC
TBC
Y TBC
TBC
TBC
TBC
3.4.2 FX & Derivatives Management

3.4.2.1 Process FX Trade from Execution to Settlement N Y N N Y N N N N N Y 3.4.2.2 Process Derivatives Trade from Execution to Settlement Y Y Y Y N N N N N N Y 4.1 Virtual Crush

4.1.2.1 Maintain Virtual Crush Report Y Y N Y N N N N N N N

TBC: subject to confirmation on whether respective applicable BU intends to adopt this

Note on FX Scope of Work SAP based solutions are being designed for the FX risk management processes within different part of organization. There is one project ongoing for overall SAP S/4HANA implementation. It’s scope includes SAP Treasury and Risk Management module (SAP TRM) which covers FX processes to manage risk arising from operations such as invoices in foreign currency, purchase orders denominated in foreign currency etc. That design and solution will be separate from the ACM/CTRM specific FX risk management described in this design document. This document refers to FX risk arising from ACM related operations and Commodity Derivative operations.

--- 第8页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 8 of 162 2 Key Design Decisions 2.1 Inventory Valuation Decision Point To use the price stated in the contract, as the reference price on the goods movement document created in the background during LDC posting Impacted L3 EOD (MtM, P&L) Reporting Background Standard behaviour in ACM is to use the price reference from the purchase info record for goods movement documents created in the background during LDC posting Leading Practice For materials with moving average price control, the valuation of inventory should follow the purchase price. For materials with standard price control, the valuation of inventory should follow the standard price in material master, and the difference between purchase and standard price shall be registered as purchase price variance, which is subsequently allocated during month end to inventory or consumption.

Proposed Solution As-Is Solution Solution Description Custom logic to copy the price in the ACM contract to the purchase order generated during LDC posting.

Fees added during the settlement will update the Moving Average price after MIRO • Handled by default Standard MM Process Pros (Design rationale, benefit) • Aligns with conventional inventory accounting practice • Consistent behaviour with SAP MM, i.e., GR against PO for moving average price materials

• No need for custom logic Cons (Drawbacks) • Custom Logic, no standard solution.
• Needs to be thoroughly tested

Decision: This option is selected

--- 第9页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 9 of 162 2.2 Realized P&L Report Decision Point GAR needs a report to show all the Contracts that are completely executed and no longer a risk and the final PnL for them can be reported Impacted L3 EOD (MtM, P&L) Reporting Background SAP Standard reports like Position & MtM reports only consider the Unrealized transactions. Since point of realization is different for each Business, there is no standard report out-of-the-box Leading Practice

Proposed Solution As-Is Solution Solution Description • Custom Report to address GAR requirements • Completely manual process Pros (Design rationale, benefit) • No Manual input or activities needed • Real time updates based on the daily Contract execution activities • Roles based authorization to handle Segregation of duties. • Flexibility to slice and dice the data Cons (Drawbacks) • Custom Report, no standard approach • Point of realization different for different entities. Custom effort might increase significantly due to this. • Lot of manual time and effort to collate data from different sources, to analyze and present data in the right format • Scope for human errors and delays Decision: This option is selected

--- 第10页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 10 of 162 2.3 Virtual Crush Report Decision Point Soybeans Physicals Report for showing complete One book view for Soybeans, Soybean Meal, Crude Soybean Oil and Refined Soybean Oil. Using this as example to build a similar report for PK as well. Impacted L3 EoD P&L reporting Background GAR China purchases SB and crushes and refines at Ningbo Plant. GAI SG tracks the Unrealized and Realized P&L throughout the process and does risk management accordingly. Leading Practice Single Report to show end to end information of the ACM Purchases of the raw materials, production order information converting the raw materials to Semi-finished and Finished materials and ACM Sales of the Semi-finished and finished materials.

Proposed Solution As-Is Solution Solution Description • Soybean Physicals Report and PK Paper Crush Report • Completely manual process Pros (Design rationale, benefit) • Automatic update • Integrated report with Trading and Manufacturing operations
• Near real time • Scalable for increased trading volume • Report can be extended to include batch Traceability • Flexibility to slice and dice the data Cons (Drawbacks) • Custom design to incorporate the complexity of Trading and Manufacturing flows • Additional development time and effort needed • Additional Maintenance effort needed • Lot of manual time and effort to collate data from different sources, to analyze and present data in the right format • Scope for human errors and delays Decision: This option is selected

--- 第11页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 11 of 162

2.4 FX & Derivatives Trade Automation Decision Point Brisken One Pilot Trade Automation (TA) vs
SAP custom built automation Impacted L3 Trade Reconciliations, Settlement, P&L

Background • FX & Derivative trades are executed externally on non-SAP platforms.
• Trades to be automatically replicated into SAP S/4HANA near real- time. • Automation must due to high trading volume • Trades initiated from multiple brokerages / platforms Leading Practice For FX trades only - SAP Trading Platform Integration (SAP TPI) For Commodity Derivative trades – custom built automation [custom ABAP utility]

Proposed Solution Potential Future Solution As-Is Solution Solution Description • Custom ABAP Utility
[For FX + Derivatives] • Download trades from Trading Platforms into excel > prepare per SAP upload template manually > upload trades in SAP via custom program • Brisken Trade Automation (TA) [For FX +
Derivatives] • Custom ABAP Utility
[For FX only] • Custom upload [For Commodity Derivatives] Pros (Design rationale, benefit) • No License / subscription fees • Lower TCO – can be fixed by any ABAPer • Low touch • Integration with all brokerages / trading platforms • Near real time • Scalable for increased trading volume • Dashboards for progress monitoring • No License / subscription fees • Lower TCO – can be fixed by any ABAPer Cons (Drawbacks) • Human intervention required to download and normalize data from different banks / brokers on regular basis • Human intervention required to import trades into SAP (no real time) • Additional project effort for initial set up • Additional maintenance effort to onboard new brokerage / trading platform
• License / subscription fees • Higher TCO – rely on Brisken support for future fixes • Human intervention required to normalize data from different banks / brokers on regular basis • Human intervention required to import trades into SAP (no real time) • From SAP standpoint, As- Is Solution supports FX trades only Decision: This option is selected Potential Future Solution

--- 第12页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 12 of 162

Caveat: The current IT solution for creation FX trades involves some degree of integration and automation. The proposed solution of manual FX trade upload may require additional headcount considering the manual process and workload.

--- 第13页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 13 of 162 2.5 FX Hedge Management Decision Point SAP Hedge Management integration with SAP Exposure Management Distinct exposure attributes for portfolios: Palm, Lauric, Oleo Impacted L3 FX Trading, Reporting, Settlement Background • Business transactions in foreign currencies give rise to FX exposures. • FX hedges are matched / reconciled against FX exposures • Reconciliation at level of portfolio: Palm, Lauric, Oleo, etc. • Monitor key figures: Net Exposure, Net Hedges, Net Open Exposure Leading Practice Adopt new Hedge Management solution in SAP S/4HANA with integration with SAP Exposure Management Use specific attributes to segregate exposures originating from source transactions

Proposed Solution As-Is Solution Solution Description • SAP (New) Hedge Management with SAP Exposure Management integration • Manual collection of FX exposures • Manual collection of FX hedges • Manual matching / reconciliations of FX exposures to FX hedges Pros (Design rationale, benefit) • FX exposures from source transactions are prepared as Raw Exposures • SAP standard feature for upload of Raw Exposures • FX transactions (trades) update Hedge Management via native integrations • Hedge Management Cockpit offers central visualization of FX exposures matched with FX Hedges split by products • Scalable for increased exposure / hedge volume • Flexible to slice & dice exposure / hedges data for reconciliation and on the fly reporting • Manual adjustment possible Cons (Drawbacks) • Success depends on timely upload of Raw Exposures • Proper attributes to be assigned in Raw Exposures for portfolios such as Palm, Lauric, Oleo, etc. • Tedious and complex procedures • Highly manual solution with a lot of human intervention being prone to human errors • Time-consuming and not real time Decision: This option is selected

--- 第14页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 14 of 162 2.6 FX Settlement Decision Point Identification as DF or NDF at inception of trade. No reclassification. NDF fixing date will be copied from trading platform e.g. Bloomberg Impacted L3 Treasury Payments Background • FX forwards settlements of two types: 1. Deliverable Forwards (DF): both legs settled separately 2. Non-Deliverable Forwards (NDF): net cash settlement • NDF settlement have peculiar requirements: • Fixing Date Determination • Cash Settlement Amount Determination Leading Practice Identify DF and NDF distinctly from inception of trade. Reclassification not possible Calendars and public holidays (per country, per currency) set up in SAP S/4HANA to determine NDF fixing date

Proposed Solution As-Is Solution Solution Description • For DF: Copy SAP standard product type 60A (FX) as Z0A with transaction type 102 (Forward) • For NDF: Copy of SAP standard product type 60N (NDF) as Z0N with transaction type 110 (NDF) • NDF fixing date will not be calculated in SAP, but copied from trading platform • SAP calculates Cash Settlement amount based on Contract Rate & Fixing Rate • Manual tagging of FX trades as DF or NDF • Manual tracking of NDF trades for follow up with banks to determine fixing date and rate • Manual calculation and update of NDF Cash Settlement Amount Pros (Design rationale, benefit) • Clear rule-based segregation of DF and NDF trades • Clarity in trade and position reporting
• Calendar maintenance in SAP (for FX operations) will be optional • Avoid manual calculation of NDF Cash Settlement amount • Manual adjustment to Cash Settlement amount possible (so as to match with bank’s amount) Cons (Drawbacks) • No flexibility to reclassify trades initially tagged as DF into NDF • Manual solution and time- consuming Decision: This option is selected

--- 第15页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 15 of 162 2.7 Market Data Import Decision Point Brisken One Pilot Market Data Hub (MDH) vs
SAP custom built integration with Bloomberg Impacted L3 Trade Reconciliations, Settlement, P&L Background • FX & Derivative market data is available from non-SAP providers
• Market data to be automatically replicated into SAP S/4HANA daily • Automation must due to high data volume and sensitivity • Bloomberg is the primary market data provider Leading Practice For FX market data only - SAP Market Rates Management (SAP MRM) For Commodity market data – Brisken Market Data Hub (MDH)

Proposed Solution Potential Future Solution As-Is Solution Solution Description • Download market data from Market Data Provider(s) into excel > prepare per SAP upload template manually > upload market data in SAP via standard feature • Brisken Market Data Hub (MDH) • [For FX + Derivatives] • Custom ABAP Utility
• [For FX only] • Custom excel import • [For Commodity Derivatives] Pros (Design rationale, benefit) • No License / subscription fees • Low touch, out of the box integration with Bloomberg • Near real time • Scalable for increased volume of market data • Dashboards for progress monitoring, anomaly alerts • No License / subscription fees • Lower TCO – can be fixed by any ABAPer Cons (Drawbacks) • Human intervention required to download and normalize data from market data provider(s) on regular basis • Human intervention required to import market data into SAP (no real time)
• Additional project effort for initial set up • License / subscription fees • Higher TCO – rely on Brisken support for future fixes • Human intervention required to normalize and publish data from Bloomberg on regular basis (no real time) • From SAP standpoint, As- Is Solution supports FX market data only Decision: This option is selected Potential Future Solution

--- 第16页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 16 of 162 2.8 Commodity Derivative Order Management Decision Point Traders / front office business users will monitor Commodity Position Report in SAP S/4HANA Impacted L3 Commodity Trades, Reporting, P&L Background • Traders base their commodity derivative trading decisions on commodity exposures from logistics transactions • Commodity Position Report in SAP S/4HANA provides information on commodity exposures and positions, including existing hedges Leading Practice • For Commodity Futures only – SAP Commodity Derivatives Order and Trade Execution (SAP CDOTE) • Commodity Derivative Transaction Orders created by middle/back office, monitored by front office

Proposed Solution As-Is Solution Solution Description • Commodity Position Report monitoring mechanism • Non-SAP based solution Pros (Design rationale, benefit) • Simpler process with lesser process steps compared to SAP CDOTE or Commodity Derivative Transaction Order monitoring mechanism • Commodity Position Report shows details / aggregation of open commodity exposures from logistics transactions as well as commodity hedges, split by various customizable dimensions • Traders are enabled with data- driven decision making • Near real time update due to SAP native integrations • Scalable for increased exposure / hedge volume • Probably fit for current business use case and trade volumes Cons (Drawbacks) • Consider ‘who gets to see what’. Commodity Position Report can detail commodity quantities from each relevant logistics transactions. Proper authorizations and access controls will need to be set up. • Non-SAP solution will need to be integrated with SAP S/4HANA • Custom integration may not be real time Decision: This option is selected

Note: SAP Commodity Derivatives Order and Trade Execution (SAP CDOTE) solution supports only Commodity Futures. It does not Commodity Options. However, project scope includes Commodity Options as well. For this reason, SAP CDOTE is not being proposed under ‘Proposed Solution’

--- 第17页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 17 of 162 2.9 Commodity Derivative Broker Reconciliation Decision Point SAP Broker Reconciliation for Commodity Derivatives (SAP BRCD) vs
Manual verification Impacted L3 Commodity Trades, Reporting, P&L Background • Brokers provide statements where details of commodity derivative trades along with matching of long/short positions are available. • Broker statements to be reconciled with trades in SAP S/4HANA on daily basis along with automatic matching of long/short positions.
Leading Practice SAP Broker Reconciliation for Commodity Derivatives with API integration

Proposed Solution As-Is Solution Solution Description • SAP Broker Reconciliation for Commodity Derivatives with Excel integration • Manual reconciliation of broker statements • Manual matching of long/short positions Pros (Design rationale, benefit) • Automated process for reconciliation of broker statements • Provision for manual reconciliation for mismatched records • Automated matching of long/short positions • Dashboard for error monitoring • Scalable for increased trading volume • Flexible to slice & dice trades data for reconciliation and on the fly reporting • Manual adjustment possible Cons (Drawbacks) • Regular human intervention required to normalize data from different brokers • License / subscription fees for SAP BRCD • Tedious and complex procedures • Highly manual solution with a lot of human intervention being prone to human errors • Time-consuming and not real time Decision: This option is selected

--- 第18页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 18 of 162 2.10 Broker P&L Reconciliation Decision Point SAP Custom Developed Report vs manual verification Impacted L3 Reporting, P&L Background • Brokers provide statements where information on realized and unrealized P&L is available • Broker statements to be reconciled with realized and unrealized information in SAP S/4HANA on daily basis Leading Practice Customer-specific report with P&L attribution

Proposed Solution As-Is Solution Solution Description • SAP Custom Developed Report • P&L attribution for various categories • Manual reconciliation of broker P&L statements Pros (Design rationale, benefit) • Customer-specific reporting - layout and information matching to requirements • Details on realized and unrealized combined in single reporting layout • Possibility to include additional features such as limit tracking • Possibility to prepare variation such as Management P&L, Financial P&L by incorporating custom calculation logic • Relies on combination of multiple SAP S/4HANA standard reports • Possibility to download SAP standard reports • Manual adjustment possible Cons (Drawbacks) • Custom ABAP development, medium to high complexity • Complexity depends on count and derivation logic for additional attributes / user requirements • Output of custom report will still need to be verified against broker P&L statements, custom report only provides all information in one place • Tedious and complex procedures • Highly manual solution with a lot of human intervention being prone to human errors • Time-consuming and not real time Decision: This option is selected

--- 第19页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 19 of 162 3 SAP Solution Blueprint This section describes SAP solutions to address key business requirements in the Commodity Trading & Risk Management process area.

3.1 Commodity Position and P&L Reporting 3.1.1 Highlighted Key Business Requirements Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution ACM- 009 Ability for traders to see close price and for Trade Control and EOD valuation to use settle price Fit Maintain in market reference table - data input from business users ACM- 010 Ability for traders to see close price and for Trade Control and EOD valuation to use settle price Fit Maintain in market reference table - data input from business users ACM- 028 Ability to schedule EOD process to run automatically; Ability if it has to be re-run, to only re-run for a specific portfolio or business unit GAR’s cut-off time is D+1 at 11 am to allow Trade Support to complete prior day's trade capture, as traders do not input details on the trade date itself (e.g., trades on 24th October are finalized by 11 am on 25th October) Fit Risk Reporting configuration ACM- 033 Ability to have Cut-Off Times / Scheduling flexibility to configure EOD snapshots with set points in time per region Fit Risk Reporting configuration
ACM- 034 Ability to customize Cut-Off Times / Scheduling based on operational needs to ensure MTM processing alignment with regional schedules Fit Risk Reporting configuration ACM- 036 Ability to apply targeted data corrections directly to risk-relevant data without a full data re-run Fit Cannot update in the system, reports can be downloaded offline in Excel format ACM- 055 Ability to define security access where risk price curves are defined and maintained by Risk team. Gap Security Roles and Authorization (baseline configuration) ACM- 062 Implement comprehensive exposure management capabilities: - Exposure Views: - Ability to build custom views on positions and exposures - Drill-down functionality to trade-by-trade attributes - Exposure analysis across multiple dimensions - Margin Management: - System to perform full recalculation of initial/variation margin - Review of actual margin requirements - Margin projection capabilities - Exposure Analysis: - Ability to analyze exposures by various criteria - Identification of Gap Custom Reporting (Copy Standard CDS view then build/configure new columns)

--- 第20页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 20 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution risk concentrations - Support for risk mitigation planning ACM- 067 Ability to perform MTM valuations across products: - Link market indices to trading locations for valuation - Support automatic MTM computation - Process adjustments for precise period-end reconciliation - Enable real-time and scheduled batch valuations - Automatically recalculate MTM when inputs change Fit Check the Reconciliation part with TRM.

VM: SAP TRM - Transaction Manager ACM- 069 Ability to ensure data quality and accuracy: - Update and correct market data - Implement data validation rules - Establish approval workflows for price changes - Configure automated alerts for data anomalies - Maintain audit trails for all price modifications Gap Combination of SAP Market Rates Management and custom developments ACM- 081 Ability to post MTM valuation entries:

Mark fee components for MTM valuation
Support MTM valuation of positions
Generate appropriate GL entries for MTM changes Fit Standard Solution Behavior ACM- 205 Ability to enable tools for closing positions:
Manually select and close futures and options positions
Automatically close futures positions on FIFO basis
Break links between matched futures/options selectively Fit Rev Rec closes the position.

VM: SAP TRM - Transaction Manager ACM- 289 Ability to segregate P&L (CIF to FOB Price for MTM) - Segregate P&L from selling goods and covering additional costs - Reconcile P&L during invoice finalization Fit Maintain FOB price = Futures and CIF part as Primary Basis. Negotiated price variance and Secondary Basis
ACM- 295 Ability to configure multiple End-of-Day cutoff time snapshots and set time exceptions for specific dates as required Fit ACRA allows for different snapshot timings for different commodity as a standard configuration. Refer to Remarks. ACM- 296 Ability to configure baseline snapshot settings that account for public holidays by automatically using the last available price, with the system referencing previous trading day prices when current date prices are unavailable Fit Alternate Holiday calendar can be configured at DCS ID level
ACM- 299 Ability to see a reconcilliation report by contract, realised\unrealised from EOD, explained by account postings across the top. Gap Use of Standard Risk Reports for Unrealized reporting

--- 第21页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 21 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution

New custom report for Realized P&L reporting ACM- 300 Ability to monitor priced, but not delivered exposure, computed from MtM (FOB down) less sum of Deposits on Counterparty level (for open SO only). -> Applicable for Margin Management Gap VM: To be addressed by FSCM - Credit Management ACM- 331 Ability to manage managing inventory-related price adjustments: - Adjust sales according to market conditions - Apply adjustments to storage tank inventory - Track price adjustments against inventory positions Gap Custom logic for daily Material MAP and Inventory valuation ACM- 360 Ability to prepare P&L: - Prepare unit and consolidated P&L files - Implement system-driven validation for discrepancies - Detect incomplete data automatically - Reduce manual verification and delays - Prepare consolidated management P&L using automated processes Gap Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement ACM- 435 Run an EOM valuation, there could be a re- run at the end of the same day, after it is done - manual adjustment will be done to true up/down Gap Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is reporting requirement ACM- 439 Ability to compute Realize PnL for all types of trade. - Swap after last price date - Futures after matched - Physical priced and moved - FX at settlement date - Option exercised / matched Gap Custom Report ACM- 446 Ability to build Views on the positions. Exposures and be able to drill down to trade by trade attributes Fit MtM and Positions Report ACM- 453 Trader Daily Position Report is grouped by trade type where the positions are reported into the respective calendar months. Gap Standard Positions, MtM and Daily Grain Report
ACM- 455 Ability to view backdated realized and unrealized trade data at specific points for evaluation and analysis, e.g., comparing open trade positions between today and the same date last year through the data tables stored in the S/4 environment Gap Refer KDD solution for this topic Realized P&L ACM- 461 Ability to reconcile trade-matching differences between trade control and statutory accounting processes Gap Refer to Inventory Val. KDD solution ACM- 462 Ability to perform MTM valuation using computed settlement prices with a daily snapshot valuation cut-off time at 3 PM Fit Standard Positions, MtM and Daily Grain Report

--- 第22页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 22 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution ACM- 471 Ability to compile total monthly CPKO closed positions, finalize and distribute trade position closed summaries to respective functional departments Fit Standard Positions, MtM and Daily Grain Report
ACM- 472 Ability to analyze total position and daily P&L to determine when futures contracts should be converted to physical trades based on product profitability Gap Custom development for transactions in ACM (Physical) and Commodity Futures, along with market data ACM- 563 Ability to generate PKPG reports on per- transaction basis and support accounting posting from GAI to GAITL Gap Information available - Custom report needed
ACM- 596 Ability to transfer positions from one directional portfolio to another in Soybeans and Bean business Fit Standard Solution Behavior ACM- 597 Ability to monitor Commodity Position Report by front office business users Fit Customization on Fields/Layout in Report needs to be solutioned further ACM- 609 Ability to value inventory using SAP Standard MM price as initial reference when purchase price is not determined, with subsequent true- up posting at invoice step Fit Part of Inventory Valuation KDD Solution ACM- 612 Ability to post quality claims and discounts to Cost of Goods Sold (COGS) rather than directly to inventory Fit Standard Solution Behavior ACM- 613 Ability to activate Material Ledger for all materials with daily average price (COGS) calculation persisted in custom table for MtM calculation reference Gap Custom development program - BADI if option 2 can be in real time (after LDC) ACM- 614 Ability to implement custom update for material price (Standard or Moving Average) with valuation being one day old Gap Custom development program - BADI if option 2 can be in real time (after LDC) ACM- 624 Ability to use contract price as value reference without copying price to MM module Gap Enhancement and Custom Report for Inventory Valuation ACM- 630 Ability to implement custom configuration enhancements at Purchase Order level for price handling Gap Reference options for inventory valuation provided by SAP - (ML vs. MAP update) ACM- 631 Ability to support group accounting policy requirements for realised P&L calculations - Alignment of Point of realization Gap Proposed solution on blueprint Trade Control - Realized P&L and need to be check again during build phase for policy compliance. ACM- 632 Ability to change P&L status from unrealised to realised at month end Fit SAP standard solution ACM- 672 Ability to track P&L attributes through hierarchical structure starting with Legal Entity, then Line of Business (LoB) such as Fit Free characteristics will be incorporated

--- 第23页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 23 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution SG (Palm, Lauric, Beans), and finally Portfolio as the lowest level of P&L attribution ACM- 673 Ability to maintain mostly n:1 relationship between Portfolio and Trader with indirect P&L attribution to Trader through Portfolio Fit Free characteristics will be incorporated ACM- 674 Ability to track Realized P&L from gains/losses on closed positions Fit Standard SAP Reporting ACM- 675 Ability to calculate and track Open contracts Mark-to-Market (MTM) for unrealized gains/losses on open positions Fit Standard SAP Reporting ACM- 676 Ability to provide time-based P&L reporting across multiple periods including Day-over- Day (DoD), Month-to-Date (MTD), and Year- to-Date (YTD) Fit Standard SAP Reporting ACM- 677 Ability to match trades from different portfolios by broker with subsequent P&L realization Gap Custom Report. Sugar Requirement Deferred for Now ACM- 678 Ability to handle trades that are not matched in SAP due to different portfolio ownership while enabling P&L realization processing Gap Custom Report ACM- 679 Ability to maintain different P&L views for management reporting purposes versus accounting purposes Gap Brisken Related ACM- 721 Ability to configure EOD snapshot timing and run live position comparisons Fit Standard ACM Risk Reports and necessary configurations ACM- 722 Ability to generate reports by month with configurable logic based on futures/basis Fit Standard ACM Risk Reports and necessary configurations ACM- 724 Ability to view net position of contracts with filtering criteria by commodity type and other parameters Fit Standard ACM Risk Reports and necessary configurations ACM- 726 Ability to recognize revenue based on delivery (BL) rather than invoice for position reporting (Exception to Consider: Non- Standard Settlements accounting needs to accrue for invoices / debits notes not issued out) Gap Custom development will be needed ACM- 727 Ability to perform side-by-side MtM analysis with configurable columns Fit Standard ACM Risk Reports and necessary configurations ACM- 728 Ability to view stock in position reports with options to segregate stock in transit Fit Standard ACM Risk Reports and necessary configurations ACM- 729 Ability to generate reports by multiple criteria including customer, product, location and other fields Fit Standard ACM Risk Reports and necessary configurations ACM- 730 Ability to view full P&L per trade with realized and unrealized differentiation Gap Custom development needed for Realized P&L. Part of the KDD for Realized P&L

--- 第24页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 24 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution ACM- 794 Ability to handle flat price inputs and perform mark-to-market comparisons on FOB basis Fit Future and Basis and Market reference price needs to be maintained by BU accordingly ACM- 795 Ability to input basis-only prices and perform mark-to-market calculations against specific basis references Fit Future and Basis and Market reference price needs to be maintained by BU accordingly ACM- 811 Ability to perform monthly inventory valuation incorporating daily quantity updates from surveyors and roll up all costs into material cost Fit Part of KDD Inventory Valuation ACM- 817 Ability to capture real inventory values at Goods Receipts and perform batch Inventory Valuation on configurable schedule (daily with optimization or monthly standard) Fit Part of KDD Inventory Valuation ACM- 835 Ability to automatically calculate trading margins (both replacement and net margins) by comparing local Pakistan market prices with purchase prices, and systematically report these to GAI Singapore for consolidated MTM analysis Gap Standard ACM risk reports can be modified to accommodate the comparative MtM calculations for both international and local markets ACM- 842 Ability to value inventory at goods receipt by including accrued import duties at estimated FX rates, ensuring complete landed cost in inventory valuation even when actual duty payment occurs later at different FX rates Gap Refer to KDD of Inventory Valuation ACM- 902 Ability to perform daily MTM using Dutch Mill benchmarks with price fixing capability after product delivery Fit SS[Jan07]: Flagged this as a Fit. Standard ACM functionality allows Price fixation after product delivery. Market reference as Dutch Mill Benchmark can be configured in the CPE setup process for the relevant commodities accordingly. ACM- 909 Ability to allocate inventory costs using multiple methodologies and allocation bases for cost distribution Gap Enhancement Needed ACM- 915 Ability to display physical, futures, and speculative positions in single configurable report with commodity-level aggregation and contract-level drill-down Fit SS[Jan07]: Flagged this as a Fit. Standard ACRA Consolidated Position report displays these positions. The views to consolidated summary can be configured as a variant to the same report. Further granular requirements which are not mentioned here can be discussed during implementation phase if needed.

--- 第25页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 25 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution ACM- 918 Ability to track and report positions in metric tons to support risk management requirements Fit SS[Jan07]: Flagged this as a Fit. Standard ACM Functionality allows for reporting in multiple UoMs: Pricing UoM, Contract UoM, etc. Reports can be configured only one of these or both as per need.
ACM- 932 Ability to recognize cost of goods sold based on specific purchase contract pricing (back- to-back costing) instead of moving average pricing, to accurately reflect margin per transaction for trading operations Gap Inventory Val. Enhancement ACM- 1063 Ability to allow backdated transactions into risk reporting. Gap Custom Risk Report. Known Gap for Backdated Solution ACM- 1085 Ability to match commodity with local price curves (Index) or international forward curves based on the PnL needed Gap Custom Report ACM- 1086 Ability to automatically calculate and report the P/L impact from rolling trades to the next contract month Fit Exist in Standard Functionality ACM- 1088 Ability to generate trading performance report on a daily and monthly basis. Report should include both realized and unrealized PnL
Gap Custom Report. Only basic functionalities are provided by ACM ACM- 1089 The system should have the ability to report the movement of day over day position Fit Exist in Standard Functionality; there are DOD reports where we can show delta or variants from previous day (MOM/YOY also available) ACM- 1090 Be able to run EOD with all the pre checks to ensure data and valuation integrity Fit Exist in Standard Functionality ACM- 1091 Ability to calculate MTM on all physical contracts captured Fit Exist in Standard Functionality; physical contracts will be in ACM, and can be shown in MTM reporting. ACM- 1112 Ability to review positions (by commodity, delivery period, customer, etc.) and manage their sale/purchase trades accordingly Fit Exist in Standard Functionality. Risk Reporting ACM- 1113 Ability to provide a report that shows the daily realized gains/losses on physical positions, highlighting the changes in value from the previous day. Gap Exist in Standard Functionality. Risk Reporting ACM- 1120 For realised sales use product level COGS

Gap Realized report ACM- 1121 Ability to show PnL report (realised and unrealised) based on Local Market price and Reuters (2 views) Gap Realized report ACM- 1132 Ability to generate real time reports on position, MtM and P&L(unrealized). Fit Exist in Standard Functionality, each report

--- 第26页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 26 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution can be generated real time from SAP ACM- 1367 Margin Calculation should be compare with report date and transacted date

Explanation: 1.On 28 July, a trade was executed at 800 USD/MT.

2.On the same day, the market price was 820 USD/MT, meaning the trader had a positive margin of +20 USD/MT at the time of the deal.

3.However, by the reporting date (04 August), the market price dropped to 750 USD/MT.

4.If the position is still open (i.e., not yet delivered or billed), this drop leads to an negative margin(unrealized loss) of -50 USD/MT Gap MtM Reference Price ACM- 1383 Ability to MTM both forward physical contracts and inventory, including inventory in transit Gap Use MtM Current report to see current status of all contracts. Can be filtered by Commodity, date range, plant ACM- 1384 Ability to explain Daily Unrealised PnL Moves to attrributes such as execution of open positions, changes in tonnages, price, FX rates, new positions etc Gap Pricing approach to use FOB price always as Futures + 'CIF Component' as primary basis + negotiated premium as Secondary basis
ACM- 1385 MTM is computed based on (Contract Price - Costs) vs FOB Valuation curve Gap Custom Report

--- 第27页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 27 of 162 3.1.2 Business Process Flow This section provides the process flow diagram at BPH L4 with the detail information for each of the process steps.

3.1.2.1 End-to-End Commodity Position and P&L Reporting

Figure 3.1 - Commodity Position and P&L Reporting Table 3.1 - Commodity Position and P&L Reporting Purchase Process Steps Role Transaction Code/Fiori App ID Description Create Purchase Contract Trader WB21/ Manage ACM Trading Contracts Application Purchase Contract for Raw Materials is created (Soybeans, PK, etc) Updates the Inventory and Unrealized P&L report to calculate the Estimated Crush results. Price Purchase Contract Trader WB21/WB22 / Manage ACM Trading Contract or Manage ACM Pricing Price can be maintained either during the creation of the Contract or later

--- 第28页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 28 of 162 Purchase Process Steps Role Transaction Code/Fiori App ID Description Shipping planning and documents Trade OPS
O4NM / Maintain Nomination Create Nomination to schedule the Deliveries and prepare the needed Shipping documents
Load data capture Trade OPS
/ACCGO/LDC_WC or Maintain Load Data Capture
Goods Receipt for the Raw materials. Updates the Inventory and Unrealized P&L report to recalculate with the Actual Inventory values Production Process Production Team Production order, Goods Issue, Good Receipt Goods Issue of Raw materials and Goods Receipt of the Semi- and Finished Materials. Updates the Inventory and Unrealized P&L report to update the Actual Crush Quantities and P&L Create and Price Sales Contracts
Trader WB21 or WB22 / Manage ACM Trading Contracts Application Sales Contract for Semi- and Finished Materials is created (Soybean Meal, Soybean Oil, PKE, PKO etc) Updates the Standard Position and MTM reports. Shipping planning and documents Trade OPS
O4NM / Maintain Nomination Create Nomination to schedule the Deliveries and prepare the needed Shipping documents
Load data capture Trade OPS
/ACCGO/LDC_WC or Maintain Load Data Capture
Goods Issue for the Semi- and Finished materials. Updates the Inventory and Unrealized P&L report to update the Sold Quantity and its Unrealized P&L Purchase Settlement & realization Backoffice I2P /ACCGO/STL_WC or Settlement Workcenter Perform Settlement & Invoicing for the Purchase Contracts Revenue Recognition Backoffice I2P /ACCGO/STL_WC or Settlement Workcenter Perform Settlement & Invoicing for the Sales Contracts

--- 第29页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 29 of 162 3.1.3 Solutioning 3.1.3.1 GAR Trade Control Book Structure Book Structure is currently being used by Trade Control Teams in Singapore, Indonesia, and Destination Offices to report Positions, Mark-to-Market Unrealized P&L, and Realized P&L across Trading Books.

This book structure is defined at Contract Level. In to-be, this book structure will be harmonized as part of the detailed design discussions. Below is the example of Book Structure, mapping each Business Units to the corresponding Portfolio.

GAI Book Structure (As-Is Example & Non-Exhaustive) BUSINESS UNIT PORTFOLIO BUSINESS UNIT PORTFOLIO PALM A1 LAURIC CRUSH A2 - P FREIGHT-L A3 L9 FREIGHT-P MARKETING-L ORIGINATION-P REFINERY-L P1 TRADING-L P11 TRADING MY-L P11A TRADING US-L P9 TRADING COL-L P9D TRADING EU-L P9M TRADING-L2 REFINERY-P TECH ALGO-P TRADING CHINA-CO TRADING CHINA-P TRADING MY-P TRADING PK-P TRADING EU-P TRADING US-P TRADING COL-P TRADING INDIA-P Figure 3.2 – As-Is Example of Book Structure This Book Structure, as part of GAR Requirements, should cater to the following requirements: • Ability to organize and manage commodity trading activities related to physical and financial trades, risk exposure and reporting for Commodity Trading Companies.
• A flexible Book Structure definition containing attributes like Strategy and trade book. This should be easily extended and managed. • The elements of a book structure can be assigned to any transaction in Physical or Financial – such as Contracts, Execution documents, Inventory-Plant/Storage Location, Derivative Instruments. Strategy is assigned on the Contract & inherited to all downstream documents. Should be restricted to risk on the nom/execution docs. • Contract to Inventory movement -> Inventory is split into each BU / Location – Default Strategy. Strategy changes – Contract on Strategy_A / Inventory-Location is on Strategy_B. When the realization happens the realized qty is dropped from S_A to S_B. • Account postings with reference to this book structure
• Mass classification/reclassification/ assignment or book transfers Ability to report in all Risk Analytical reports using Book Structure & its elements.

--- 第30页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 30 of 162 3.1.3.2 Inventory Valuation In Standard SAP ACM process, the LDC step creates the Goods movement documents at the back end. During this process Purchase LDC the Goods Receipt is created usually with a static price reference like Purchase Info Record.

In the expected To-Be Design of SAP ACM, Inventory Valuation needs to consider the Purchase Contract price, which means the Purchase Order created during LDC would have to be created with the Contract Price. This would require a pricing setup to be done. The pricing setup required should follow the purchase contract price fixation and subsequently should flow as a price reference for the batch that were generated.

Currently, above requirement is required for Singapore. Further standardization and harmonization across all GAR entities will be discussed as part of a detailed design discussion topic.

For Indonesia, Material A procured for further processing is transferred into Material B and C based on their quality and grade before crushing. Trade Control team then would like to follow the Position and Value of Material A for Material B & C.

At the end of month, Material B & C will be priced as a standard price as part of the end-of-month activity process valid for the upcoming month. These changes should subsequently be reflected accordingly to the corresponding report.

We have considered the following inventory valuation methods for GAR Trading Businesses:
1. Standard Price with Actual Costing Under this approach, inventory movements such as goods receipts and goods issues are initially valuated using the material’s standard price. Any differences between the standard price and the actual procurement or production cost are captured as price differences or variances during the period. At period-end, Actual Costing / Material Ledger is used to calculate the actual periodic unit price and allocate variances to ending inventory and consumption, where applicable. This approach is generally relevant for Indonesia, particularly for entities or materials involving manufacturing or production activities. 2. Moving Average Price Under this approach, goods receipts are valuated based on the actual receipt value, such as purchase price or procurement cost. Each goods receipt updates the material’s moving average price at valuation area level. Goods issues are then valuated using the moving average price available at the time of posting. This method is typically suitable for materials where inventory value should continuously reflect recent procurement prices. 3. Batch Valuation with Moving Average Price Under this approach, inventory valuation is managed at batch level. Goods receipts are valuated based on the actual receipt or purchase value and the value is retained against the specific batch. Subsequent goods issues are valuated based on the value of the batch being issued. This approach provides more granular cost traceability and is generally relevant for Singapore and destination offices, where trading inventory may need to be tracked and issued by specific batch or lot.

We are currently proposing the following inventory valuation approach by Business Units: • Indonesia (e.g. Upstream, Downstream, and SOCI): Combination of Standard Price with Actual Costing and Moving Average Price, depending on the material type and business process. • Singapore and all destination offices: Batch Valuation with Moving Average Price, where valuation is maintained at batch level to support batch-specific cost traceability.

--- 第31页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 31 of 162 3.1.3.2.1 Batch Valuation Batch Valuation is a specialized inventory valuation method that allows companies to maintain separate costs and values for individual batches of the same material. It enables companies to track the price and value of each individual batch in inventory management which is crucial for agricultural commodities where batches may have different quality characteristics. The concept is essential for agricultural commodity trading where commodities like Crude Palm Oil, Soybean Meal can have different values based on DPQS such as FFA, moisture, protein etc. that impact final pricing and settlement.

Batch Valuation Business Scenarios

There are multiple different scenarios in which Batch should be valuated according to the timing of the price fixation at contract level. 1. Purchase Scenario, when contract was not priced. 2. Purchase Scenario, when contract was priced partially. 3. Purchase Scenario, when contract was fully priced. 4. Sales Scenario, using the purchase generated batch. Reports Affected
The key figures from batch valuation should subsequently be reflected on below reports. 1. Risk Reports need to accommodate inputs from the Batch Valuation table and a possibility to display information at Batch level as well as summarizing at org. structure level.
2. Virtual Crush Report, which includes batch processing like crushing/ refining. Further alignment with PP/MM Module is required on the detailed design phase.

--- 第32页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 32 of 162 3.1.3.3 GAR Risk Report Solution The current solution approach from SAP is to use a combination of the reports mentioned below: 1. Consolidated Position Report – This is an SAP ACRA report that shows the Summarized Position of Financial contracts, Physical contracts and the current Inventory or Material Stock. The report can also be used to filter to contract level positions and quantities. More details of this report can be seen in Section 3.1.3.8 Advanced Commodity Risk Analytics. 2. Unrealized MtM PnL – This is an SAP ACM Standard report. This report shows the trading P&L a difference between the Contract prices vs the Market prices for Open/Unrealized position. More details of this report can be seen later in this section. 3. Realized PnL – This is a Custom report to be built in SAP for GAR. It would show the Purchase contracts and the linked Sales contracts, the realized quantities on both and the overall realized value for both. For each combination the report would also show the resulting Profit/Loss comparing the linked Purchase and Sales values. 4. Virtual Crush Report – This is a Custom report to be built in SAP for GAR. It would show the details of each Purchase Contract and calculate the Estimated Crush quantities and PnL, show the Actual Crush quantities and PnL and the linked Sales and STO quantities and PnL. More details of this report can be seen in Section 4.1 Virtual Crush. Currently there are two reports showing the Unrealized and Realized PnL separately. In the final To- Be version, GAR would like to see the Unrealized and Realized PnL together in one report. The detail of this consolidation needs to be discussed during the Implementation phase of the project.

Also, for GAR the Overall Exposure is never in terms of the Raw materials Purchased (Soybeans, Palm Kernel). Instead, the Overall Exposure needs to be converted into the estimated Crushed positions of the by-products (Soybean Meal, Crude Soybean Oil etc). This enhancement also needs to be finalized during the Implementation phase of the Project.

--- 第33页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 33 of 162 3.1.3.4 Position Report In SAP Agriculture Contract Management, standard position report is explained like below. For GAR, the leading proposal for position report would be to use ACRA. • Reflects Physical (delivered) and Contractual (yet to be delivered) positions across contract, nomination, Load data capture and Settlement Stages. • Position can be viewed per Product or Product profile (Portfolio as defined in Standard ACM) and Plant or location. • Open position is updated automatically based on goods movements and their value as per Contract price is depicted. • The risk is described in terms of priced quantities, by consolidating a view of physical trades and paper trades in a certain time frame.

3.1.3.4.1 Data Source for Position Reports SAP ACM document flow including Contracts, Nomination, LDC and subsequent documents such as goods movements and application documents are used as data sources for these reports.

3.1.3.4.2 Viewing Position Report The Position Reports can be executed using transaction RSRT or other tools that can consume CDS queries such as MS Excel (with Analysis for Office app) and SAP SAC (additional license might be required).

3.1.3.4.3 Position Report Types 3.1.3.4.3.1 Price Type Report This report provides an overview of the total quantity per price status over all selected contracts. This report provides a view of all key figures for the price fixation statuses FLAT, NFE, NPE, and NBE.

For Key Figures, refer: Price Type Report | SAP Help Portal):

Figure 3.3 - Sample Price Type Report Please note that the exact report format / layout needs to be further discussed during the detailed design discussions.

--- 第34页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 34 of 162 3.1.3.4.3.2 Premium Report This report provides an overview of the basis (premium) quantity at risk, which is defined, as the quantity for which the basis price has been fixed for the price fixation statuses FLAT and NFE.

For Key Figures, refer: Premium Report | SAP Help Portal

Figure 3.4 - Sample Premium Report Please note that the exact report format / layout needs to be further discussed during the detailed design discussions.

3.1.3.4.3.3 Slate Report This report shows the future quantity at risk, which is defined as the quantity for which the future price has been fixed. It displays the implied futures trade quantity in the key figures Unpriced NFE Purchase and Unpriced NFE Sales.

 For Key Figures, refer: Slate Report | SAP Help Portal

Figure 3.5 - Sample Slate Report Please note that the exact report format / layout needs to be further discussed during the detailed design discussions.

--- 第35页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 35 of 162

3.1.3.5 Mark-to-Market Report Mark-to-Market Report is a standard ACM Report in which will be implemented for GAR. Explanation of MtM Report as below: • Shows unrealized Trading P&L from open positions based on market prices vs contract prices, adjusting for quantities and latest prices. • MtM report can be viewed per Product or Product profile and Plant or location. • Daily market price changes and daily goods movements both independently can refresh the Trading P&L calculations. • The requirement for MtM report is to also have different market curves/ valuation reference. E.g. for Indonesia Steering Control Meeting (which uses Local MtM curve) and Global MtM curves for Trade Control. This requires further discussions during detailed design for the solution approach. • For Price References in MtM Reports, please see Section 3.2.3.8 Pricing Components at Trade Capture Blueprint.

3.1.3.5.1 Data Source for Mark-to-Market Reports SAP ACM document flow including Contracts, Nomination, LDC and subsequent documents such as goods movements and application documents are used as data sources for these reports.

3.1.3.5.2 Running Mark-to-Market Report The Mark-to-Market Reports can be executed using transaction RSRT or other tools that can consume CDS queries such as MS Excel (with Analysis for Office app) and SAP SAC (additional license might be required).

3.1.3.5.3 Mark-to-Market Report Types 3.1.3.5.3.1 Mark-to-Market Report for Logistical Documents Mark-to-market report for logistics documents facilitates valuation of logistics documents against one or multiple components, for example, a commodity future curve, or commodity future and basis.

For Key Figures shown in this Report, refer: Mark-to-Market Reporting for Logistical Documents | SAP Help Portal

3.1.3.5.3.2 Mark-to-Market Report for Stock In SAP Agricultural Contract Management, stock MtM represents the availability of stock at a given point of time. Quantities with fixed pricing are considered by the system. As soon as a quantity belonging to a logistics document is realized, it reduces or adds to the stock inventory. The contractual value of stock is calculated using the material valuation. The market value is calculated using conditions in a market price procedure.

For Key Figures shown in this Report, refer: Mark-to-Market Reporting for Stock | SAP Help Portal

--- 第36页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 36 of 162 3.1.3.6 Report Variations Each Report has these different variations: • Current Version: This version provides a comprehensive overview of all position data available up to the present moment. It includes all transactions and relevant information up to the current timestamp.
• End of Day Version: The end of day version narrows its focus to the position data up until a specific cutoff time, typically aligned with market close or other critical time markers.
• Day-Over-Day Version: It highlights the changes and differences in your positions between two specific timestamps. For instance, it can show you what has occurred between the end of one trading day and the start of the next.

--- 第37页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 37 of 162 3.1.3.7 Realized P&L Report Requirements: GAR needed a report to show the Linked Purchase and Sale contracts to calculate the Final Realized P&L for the Quantities that are Delivered and Invoiced and revenue recognized or realized. For each realized sales, GAR needs to know the corresponding COGS based on batch valuation or weighted average valuation. This report is for GAR Singapore (SG) only.

Solution Proposed: Custom report to address the GAR requirements represented in the below sample. Note that for Virtual Crush please refer to section 4.1 (separate report). Commodity Material Mat Description Contract Contract Type Batch Contract Qty in KG Realized Qty in KG Contract Price USD/KG Value in Doc. Currency Expenses Production Cost DPQS Adjustments Fx Rate Realized P&L Soybeans SB001 Soybeans Grade1 550226 Purchase
SB011203 5000 2970 1,28 3800,00 200,00 __ 125,00 1,00 4125,00

Result

Soybeans SB001 Soybeans Grade1 112 Purchase
SB011101 2000 500 10000 5000000,00 20000,00 __ 250000,00 1,00 5270000,00 Soybean Meal SBM001 Soybean Meal
23451 Sale SBM141101 1000 250 10000 2500000,00 10000,00 From PP order or from Batch Valuation. TBD 125000,00 1,00 2615000,00 Crude Soybean Oil CSBO001 Crude Soybean Oil - BULK 23452 Sale CSBO141101 1000 175 18000 3150000,00 15000,00 From PP order or from Batch Valuation. TBD 131250,00 1,00 3266250,00 Other Soy By-product

Soy hull 23453 Sale

Result

611250,00 Soybeans SB002 Soybeans Grade2 112 Purchase
SB011101 2000 500 10000 5000000,00 20000,00

250000,00 1,00 5270000,00 Soybean Meal SBM001 Soybean Meal
23451 Sale SBM141101 1000 280 10000 2800000,00 10000,00

125000,00 1,00 2915000,00 Crude Soybean Oil CSBO001 Crude Soybean Oil - BULK 23452 Sale CSBO141101 1000 145 20000 2900000,00 15000,00

131250,00 1,00 3016250,00

Result

661250,00

CPO PKO001 RBDPO Bulk 114 Purchase 2711003

--- 第38页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 38 of 162 Table 3.2 (End-of-Day) Realized P&L Sample Report

CPO PKO001 RBDPO Bulk 23451 Sales 2711003

CRUDE PALM OIL 70000122 RBDPO BULK- PORAM 63 Sale

100 5 110 550,00 0,00

0,00 1,00 550,00 CRUDE PALM OIL 70000122 RBDPO BULK- PORAM 74 Sale

10000 100 20000,21 2000021,00 0,00

0,00 1,00 2000021,00

--- 第39页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 39 of 162 3.1.3.7.1 Key Features Contract Details: the Purchase and linked Sales Contracts , their initial Contracted Quantities are displayed Realized Quantity: Based on the quantities for which LDC, Settlement and realization has been done is updated here
Contract Price: Purchase & Sale Contract prices are update here
Quantities and their value can be shown in both Pricing units of measure and/or document units of measure. Other adjustments: Other factors like Expenses, DPQS Adjustments and Fx rates are listed based on the information from the Contracts Production Cost: For Sales Contracts there needs to be another column to show the additional production cost and not just the Expenses recorded on the ACM Contract (not shown in the screenshot above. To be included)
Realized P&L: Final P&L including all the Purchase & Sale values mentioned above is calculated for each set of linked transactions

Details of this would be updated in RICEFW-SG-115 and RICEFW-SG-116.

3.1.3.7.2 Un-realized PNL Reports In SAP PnL Report, PnL refers to the daily change to the value of their trading positions. The general formula for P&L is P&L = Value today minus value yesterday.

Profit and Loss (P&L) reporting is a financial instrument used to determine a company's profit or loss based on market factors, while also explaining the factors that contribute to the profit and loss. Traders can monitor the market valuation of commodities in a certain evaluation period and determine the factors to which the fluctuations in the market evaluation can be attributed.

For Key Figures shown in this Report, refer: Profit and Loss Reporting | SAP Help Portal

--- 第40页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 40 of 162 3.1.3.8 Advanced Commodity Risk Analytics Consolidated Position Report will be using Advanced Commodity Risk Analytics (ACRA) is to redesign the architecture of the existing Risk Analytics solution, spanning from Commodity Position and Mark- to-Market calculation to Trading Profit and Loss reporting. Our objective is to create a standard Risk Analytics product capable of managing extensive data volumes from the commodity trading business. ACRA has the following new and upcoming feature.

Figure 3.6 – Solution Architecture

3.1.3.8.1 Risk Snapshot Group The new Risk Snapshot Group functionality allows flexible configuration of Snapshot and Snapshot Attributes differently for different Commodities. Below are the new applications that enable us to do this.

Figure 3.7 - Risk Snapshot Group These applications allow the users to define Snapshot Grouping attributes and then create Snapshot groups based on those attributes.

Impact: Snapshot time can be maintained in a flexible way as a separate time for different Commodities / Market references / Locations

--- 第41页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 41 of 162

3.1.3.8.2 Market Curve Applications GAR can take advantage of the new Market Curve applications to track the same commodity in the international market and the local market at the same time. This could enable Traders to easily price their Contracts comparing both the Market Curves.

Figure 3.8 - Market Curves Applications These applications allow Traders to define Market Curves and assign them to Profit Centers and/or Company codes to track the risk implication. Assignment tab in the Manage Market Curves can be utilized as per the business requirements. Please note that this would need further discussions on the solution approach, how, and who assigns market curves to trades.

Figure 3.9 - Manage Market Curves

--- 第42页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 42 of 162 3.1.3.8.3 Consolidate Position – Physicals & Financials & Inventory Key Figures To help collate all the information needed for the Consolidated Position Report at End of day trade control can run the checklist defined in the Advanced Financial Close (AFC) to systematically update the end-of-day evaluations of position and inventory value.

Figure 3.10 - Task Lists The Consolidated Position Report itself then gives a comprehensive overview of physical position, derivatives position as well as current inventory.

Figure 3.11 - SAC Dashboard Furthermore, the SAC dashboard can be used to customize how each Trader views and tracks positions and risks varied stories and queries based on filtering criteria particular to them or use the dashboard to model information for the Management to provide a daily summary.

--- 第43页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 43 of 162

3.1.3.8.4 Flexible Realization The point of realization is when a particular transaction is no longer tracked as a risk to the Company and can be considered as fully executed and ready for calculating the final PnL. Within GAR different Business Units have different points of realization and even within a Business Unit the point of Realization may vary based on Commodity and/or Delivery Incoterms. This leads to information update in the Unrealized PnL report vs Realized PnL report that varies vastly from what the Business expects to see.

With SAP ACRA, the point of Realization can be configured to be more flexible than the current ACM risk analytics allows (Transactions are currently considered as Realized only after the Invoicing and Revenue Recognition/Purchase Realization steps)

Flexible Realization - GAR Requirements:

Ability to have a flexible timing for realization to enable accurate representation of risk based on the relevant events in lifecycle of the commodity transaction processes (i.e., the point at which inventory risk and values are recognized).
At GAR there are 3 broad scenarios when realization can happen
a) At invoicing when the goods movement is accompanied with the invoice. The realization is triggered with the invoice generation and revenue recognition process in ACM (Sales Scenario) b) At title transfer (based on incoterms) is also recognized as a realization moment, as it marks the legal and economic transfer of ownership and thus the transfer in risk and reward from seller to buyer. In this case the realization happens before the final invoice is settled. (purchase Scenario) c) Non-Standard Settlement (washout) – no Goods Movement - settlement document is generated / invoiced
Realization should apply to Risk reports - Positions, Mark-to-Market.

The ACRA team is in the process of developing this solution currently and further calls with ACRA team is needed to discuss GAR specific Business Scenario for Flexible Realization.

3.1.3.8.5 Intraday Position Reporting Stakeholders need position visibility throughout the day: • Changes in contracts, executions and inventory as timely as possible to identify errors, get them corrected before the End-of-Day. • Identify required hedging activities in time for mitigating risks in volatile markets • Monitor trading limits and operational risk Solution must: • Be lightweight enough to support frequent updates (e.g., every few minutes) • Provide near up-to-date position • Ensure data consistency • Maintain traceability and auditability The ACRA team is in the process of developing this solution currently and further calls with ACRA team is needed to discuss GAR specific Business Scenario for Intraday Position Reporting.

--- 第44页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 44 of 162 3.1.3.8.6 Mark-to-Market Reporting Mark-to-market is not just an end of day report but a multi-step process such as: • Exposure Quantity calculation (Net Position Calculation) • Upload Price - Future / Basis / Material • Upload FX rates • Calculation of Spreads • Perform Basis Adjustment • Calculate MTM for Physical Contracts, Inventory (Stock), Derivatives
• Review of contracts and results with stakeholders – Accounting, Traders, Risk Analyst etc • Month End Posting to Accounting The ACRA team is in the process of developing this solution currently and further calls with ACRA team is needed to discuss GAR specific Business Scenario for Mark to Market Reporting.

3.1.3.8.7 Book Structure Book structure is a key component to organize and manage commodity trading activities related to physical and financial trades, risk exposure and reporting for Commodity Trading Companies. Key requirements to be addressed are: • One consistent source of truth for Book/Strategy across transactions and documents • Governed, usable attributes with validation and value help, harmonized, aggregation-ready reporting • Safe mass classification/reclassification and book transfers with simulation, approvals, effective dating, and full audit trail • Track-and-trace of reassignments The ACRA team is in the process of developing this solution currently and further calls with ACRA team is needed to discuss GAR specific Business Scenario for Book Structure.

3.1.3.8.8 Snapshot Adjustment Risk Analysts typically expect a ‘snapshot freeze’ at Close of Business. Activities performed after EOD are never supposed to influence it retroactively. However, there are circumstances a Risk Analyst may need to adjust the snapshot: • Snapshot needs to be updated because of incorrect Market Data • Significant Trading Activities being required in daily reporting (e.g. Late Deals) • Month-end reporting needing to be in-sync to accounting Challenges for the Solution: • Auditability • Ability to handle low / high volume changes through Manual or Rule Based Adjustments The ACRA team is in the process of developing this solution currently and further calls with ACRA team is needed to discuss GAR specific Business Scenario for Snapshot Adjustment.

This will be the proposed solution for Backdated transactions explained in RTM ID ACM-365, ACM- 1063.

--- 第45页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 45 of 162 3.1.3.9 Timeline and Use Case for ACM Reports 1. Setup risk reporting parameters – Snapshot time determined to denote ‘End of Day’; Market prices for all the Commodities for the required Delivery periods are uploaded, point of realization is confirmed in general.
2. Start of the day, Traders could use the Consolidated Position Report, Virtual Crush Report & End of Day version of the MtM Reports to check on the closing Position at the end of previous day and the daily Unrealized P&L. 3. New Contracts, New Price Fixations, Contract executions and Settlements put in during the day shall update the MtM reports, Consolidated Position reports and the Virtual Crush report. 4. Trade Control can use the Consolidated Position Report to see the overall big picture of the current position and Current Version of the MtM Report current unrealized Trading P&L for each individual Contract. Also, the Virtual Crush Report to see the latest updates to the Available to Crush and Actually Crushed quantities, etc. The same report can also be used to track the Unrealized Purchase-Sale P&L, if any Sales/STO goods issue is posted.
5. Settlements and subsequent Revenue Recognition/Purchase Realization, update the Realized P&L report.
6. During Month-end the Trade Control team can check for the End of Day reports for each day of the month to reconcile the month end position using standard Position and MtM reports. Virtual Crush can help in checking for the final position after linked Purchase and Sale are executed and final inventory. 7. Unrealized P&L for Forward and unmatched Sales can be checked using the MtM report. Inventory and P&L report gives the final Unrealized P&L tying in the Purchase and Sale. Realized P&L reports can be checked to post the overall month end Profit and Loss. GAR would like to see the Unrealized and Realized P&L consolidated into one single report. The details of this consolidated P&L report are to be discussed during implementation phase.

Start of the day, Traders could use the Consolidated Position Report, Virtual Crush Report & End of Day version of the MtM Reports to check on the closing Position at the end of previous day and the daily Unrealized P&L. 0. New Contracts, New Price Fixations, Contract executions and Settlements put in during the day shall update the MtM reports, Consolidated Position reports and the Virtual Crush report. 1. Trade Control can use the Consolidated Position Report to see the overall big picture of the current position and Current Version of the MtM Report current unrealized Trading P&L for each individual Contract. Also, the Virtual Crush Report to see the latest updates to the Available to Crush and Actually Crushed quantities, etc. The same report can also be used to track the Unrealized Purchase-Sale P&L, if any Sales/STO goods issue is posted.
2. Settlements and subsequent Revenue Recognition/Purchase Realization, update the Realized P&L report.
3. During Month-end the Trade Control team can check for the End of Day reports for each day of the month to reconcile the month end position using standard Position and MtM reports. Virtual Crush can help in checking for the final position after linked Purchase and Sale are executed and final inventory. 4. Unrealized P&L for Forward and unmatched Sales can be checked using the MtM report. Inventory and P&L report gives the final Unrealized P&L tying in the Purchase and Sale. Realized P&L reports can be checked to post the overall month end Profit and Loss. GAR would like to see the Unrealized and Realized P&L consolidated into one single report. The details of this consolidated P&L report are to be discussed during implementation phase.

--- 第46页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 46 of 162 The file attached below shows a sample use case with a Purchase Contract for Soybeans and the different reports that can be used and when.

Trade%20Control%2 0Sample.xlsx

(explained on the next page)

--- 第47页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 47 of 162 Table 3.3 – (Start of day) Traders refer to the Consolidated Position Report for a comprehensive view of Physical positions, Derivative Positions and current Inventory Nov 17,2025 Consolidated Position - Physicals & Financials

Snapshot Date Nov 16, 2025

Adjusted Reporting Calendar Month Nov

Jan

Price Fixation Status FLAT

FLAT

Calculation Group Basis Futures Futures Physicals/Financials Document Type Long/Short Position Measures

Financial Commodity Future Long position Unrealized Priced Contract Quantity KG 0

Unrealized Market Quantity KG 0

Undelivered Market Quantity KG 0

Outright Exposure Quantity KG 0

Short position Unrealized Priced Contract Quantity KG -10000

Unrealized Market Quantity KG -10000

Undelivered Market Quantity KG -10000

Outright Exposure Quantity KG -10000 Physical Material Stock Long position Net Stock on Hand Market Quantity KG 10000 10000

Net Unrealized Goods Receipt Market Quantity KG 0 0

Net Realized Stock Quantity KG 0 0

Trading Contract Long position Unrealized Priced Contract Quantity KG 0 0 0

Unrealized Market Quantity KG 0 0 0

Undelivered Market Quantity KG 0 0 0

Outright Exposure Quantity KG 0 0 0

--- 第48页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 48 of 162 Table 3.4 - (Start of Day) Virtual Crush Report - starting

Note: This approach may still change during the detailed design discussions.

Material Purchase Contract Reference
Vessel Name Contract Open
Qty (BU) Available to Crush / Refine Quantity (kMT) Inventory Value (USD) Estimated Cost of Crushing (USD/MT) Cost of Refining (USD/MT) Est. Yield % Est. Yield Qty (BU) Est. Crush Value (USD) Est. Crush Market Value (USD) Est. Crush P&L Actual Crushed Qty Actual Production Cost
Actual Yield % Actual Crush Qty of By products
Actual Crush Value
Actual Crush Market Value Actual Crush P&L STO Qty Price Applicable for STO Qty Sold Qty Sold Qty Value Final Unrealized P&L Palm Kernel

PK Oil

PK Expeller

Residual

Soybean

SBM

CSBO

RSBO

--- 第49页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 49 of 162

Table 3.5 - (During the Day) Consolidate Position - Changes in Physical & Derivative Position - New Unpriced Contract Nov 17,2025 Trading Contract 550226 NPE- No Price Established 5000 KG

Adjusted Reporting Calendar Month Nov

Price Fixation Status NPE

FLAT

Calculation Group Basis Futures Basis Futures Physicals/Financials Root Document Root Document Type Measures

Physical 550226 Trading Contract Unrealized Market Quantity KG 5000 5000

Undelivered Market Quantity KG 5000 5000

Unrealized Unpriced Contract Quantity KG -5000 0

(No Value) Material Stock Net Stock on Hand Market Quantity KG 0 0 10000 10000

Net Unrealized Goods Receipt Market Quantity KG 0 0 0 0

--- 第50页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 50 of 162 Table 3.6 - (During the Day) Consolidate Position - Changes in Physical & Derivative Position - Contract Priced Nov 17,2025 Trading Contract 550226 Priced (FLAT)

Adjusted Reporting Calendar Month Nov

Price Fixation Status FLAT

Calculation Group Basis Futures Physicals/Financials Root Document Root Document Type Measures

Physical 550226 Trading Contract Unrealized Priced Contract Quantity KG -5000 0

Unrealized Market Quantity KG 5000 5000

Undelivered Market Quantity KG 5000 5000

Outright Exposure Quantity KG 5000 5000

(No Value) Material Stock Net Stock on Hand Market Quantity KG 10000 10000

Net Unrealized Goods Receipt Market Quantity KG 0 0

Net Realized Stock Quantity KG 0 0

--- 第51页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 51 of 162 Table 3.7 - (During the Day) Virtual Crush Report - Calculation of estimated Crush values for Contracted quantity

Material Purchase Contract Reference
Vessel Name Contract Open
Qty (BU) Available to Crush / Refine Quantity (kMT) Inventory Value (USD) Estimated Cost of Crushing (USD/MT) Cost of Refining (USD/MT) Est. Yield % Est. Yield Qty (BU) Est. Crush Value (USD) Est. Crush Market Value (USD) Est. Crush P&L Actual Crushed Qty Actual Production Cost
Actual Yield % Actual Crush Qty of By products
Actual Crush Value
Actual Crush Market Value Actual Crush P&L STO Qty Price Applicable for STO Qty Sold Qty Sold Qty Value Final Unrealized P&L Palm Kernel

PK Oil

PK Expeller

Residual

Soybean 550226 MVS XX NOV25 5000 0 0 1.5

SBM

78 3900 3315 3315 0

CSBO

18 900 1800 1800 0

RSBO

0 0 0 0

--- 第52页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 52 of 162 Table 3.8 - (Contract Deliveries) Consolidate Position - Changes in Inventory Nov 17,2025 Trading Contract 550226 Fully Priced 5000 KG

1st Delivery 3000 KG (Gross) 2970 KG (Net)

Adjusted Reporting Calendar Month Nov

Price Fixation Status FLAT

Calculation Group Basis Futures Root Document Document Document Type Measures

550226 234791 Application Document Unrealized Priced Contract Quantity KG -2970 -2970

Unrealized Market Quantity KG 2970 2970

Delivered Market Quantity KG 2970 2970

Outright Exposure Quantity KG 2970 2970

550226 Trading Contract Unrealized Priced Contract Quantity KG -2030 -2030

Unrealized Market Quantity KG 2030 2030

Undelivered Market Quantity KG 2030 2030

Outright Exposure Quantity KG 2030 2030 (No Value) (No Value) Material Stock Net Stock on Hand Market Quantity KG 12970 12970

Net Unrealized Goods Receipt Market Quantity KG -2970 -2970

--- 第53页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 53 of 162 Table 3.9 - (Contract Deliveries) Virtual Crush Report - Calculation of estimated Crush values for Delivered quantity

Material Purchase Contract Reference
Vessel Name Contract Open
Qty (BU) Available to Crush / Refine Quantity (kMT) Inventory Value (USD) Estimated Cost of Crushing (USD/MT) Cost of Refining (USD/MT) Est. Yield % Est. Yield Qty (BU) Est. Crush Value (USD) Est. Crush Market Value (USD) Est. Crush P&L Actual Crushed Qty Actual Production Cost
Actual Yield % Actual Crush Qty of By products
Actual Crush Value
Actual Crush Market Value Actual Crush P&L STO Qty Price Applicable for STO Qty Sold Qty Sold Qty Value Final Unrealized P&L Palm Kernel

PK Oil

PK Expeller

Residual

Soybean 550226 MVS XX NOV25 2030 2970 3800 1,5

SBM

78 3900 2925 3315 390

CSBO

18 900 1350 1350 0

RSBO

0 0 0 0

--- 第54页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 54 of 162 Table 3.10 (Crush/ Refine Activities) Consolidate Position - Changes in Inventory Nov 17,2025 Trading Contract 550226 Fully Priced 5000 KG

1st Delivery 3000 KG (Gross) 2970 KG (Net)

Adjusted Reporting Calendar Month Nov

Price Fixation Status FLAT

Calculation Group Basis Futures Root Document Document Document Type Measures

550226 234791 Application Document Unrealized Priced Contract Quantity KG -2970 -2970

Unrealized Market Quantity KG 2970 2970

Delivered Market Quantity KG 2970 2970

Outright Exposure Quantity KG 2970 2970

550226 Trading Contract Unrealized Priced Contract Quantity KG -2030 -2030

Unrealized Market Quantity KG 2030 2030

Undelivered Market Quantity KG 2030 2030

Outright Exposure Quantity KG 2030 2030 (No Value) (No Value) Material Stock Net Stock on Hand Market Quantity KG 10970 10970

Net Unrealized Goods Receipt Market Quantity KG -2970 -2970

--- 第55页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 55 of 162 Table 3.11 - (Crush/ Refine Activities) Virtual Crush Report - Calculation of actual Crush values for crushed quantity

Material Purchase Contract Reference
Vessel Name Contract Open
Qty (BU) Available to Crush / Refine Quantity (kMT) Inventory Value (USD) Estimated Cost of Crushing (USD/MT) Cost of Refining (USD/MT) Est. Yield % Est. Yield Qty (BU) Est. Crush Value (USD) Est. Crush Market Value (USD) Est. Crush P&L Actual Crushed Qty Actual Production Cost
Actual Yield % Actual Crush Qty of By products
Actual Crush Value
Actual Crush Market Value Actual Crush P&L STO Qty Price Applicable for STO Qty Sold Qty Sold Qty Value Final Unrealized P&L Palm Kernel

PK Oil

PK Expeller

Residual

Soybean 550226 MVS XX NOV25 2030 970 3800 1,5

2000 1,45

SBM

78 2340 1755 1989 234

75 1500 1125 1275 150

CSBO

18 540 810 1080 270

20 400 600 800 200

RSBO

0 0 0 0

97 388 970 1552 582

--- 第56页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 56 of 162 Table 3.12 (Settlement & Realization) Consolidate Position - Changes in Position Nov 26,2025 Trading Contract 550226

Realized

Adjusted Reporting Calendar Month Nov

Commodity Price Fixation Status FLAT

Calculation Group Basis Futures Root Document Document Document Type Measures

550226 550226 Trading Contract Unrealized Priced Contract Quantity KG -2030 -2030

Unrealized Market Quantity KG 2030 2030

Undelivered Market Quantity KG 2030 2030

Outright Exposure Quantity KG 2030 2030 (No Value) (No Value) Material Stock Net Stock on Hand Market Quantity KG 10970 10970

Net Unrealized Goods Receipt Market Quantity KG -2970 -2970

Net Realized Stock Quantity KG 2970 2970

--- 第57页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 57 of 162 Table 3.13 (End-of-Day) Consolidate Position - Summary Nov 17,2025 Consolidated Position - Physicals & Financials

Snapshot Date Nov 16, 2025

Adjusted Reporting Calendar Month Nov

Commodity Price Fixation Status FLAT

Calculation Group Basis Futures Physicals/Financials Document Type Long/Short Position Measures

Financial Commodity Future Long position Unrealized Priced Contract Quantity KG 5000

Unrealized Market Quantity KG 5000

Undelivered Market Quantity KG 5000

Outright Exposure Quantity KG 5000

Short position Unrealized Priced Contract Quantity KG -15000

Unrealized Market Quantity KG -15000

Undelivered Market Quantity KG -15000

Outright Exposure Quantity KG -15000 Physical Material Stock Long position Net Stock on Hand Market Quantity KG 10970 10970

Net Unrealized Goods Receipt Market Quantity KG 0 0

Net Realized Stock Quantity KG 2970 2970

Trading Contract Long position Unrealized Priced Contract Quantity KG -2030 -2030

Unrealized Market Quantity KG 2030 2030

Undelivered Market Quantity KG 2030 2030

Outright Exposure Quantity KG 2030 2030

Note: End of day MTM valuation Specific to GAI, BU:BEANS, Portfolios: MAR/MAY, JUL/SEP, NOV/JAN, JUL/JAN, must run based on 2 price data sources: Last Closing Price and 3PM Closing price.

--- 第58页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 58 of 162 Table 3.14 - (End-of-Day) Virtual Crush Report - Summary

Material Purchase Contract Reference
Vessel Name Contract Open
Qty (BU) Available to Crush / Refine Quantity (kMT) Inventory Value (USD) Estimated Cost of Crushing (USD/MT) Cost of Refining (USD/MT) Est. Yield % Est. Yield Qty (BU) Est. Crush Value (USD) Est. Crush Market Value (USD) Est. Crush P&L Actual Crushed Qty Actual Production Cost
Actual Yield % Actual Crush Qty of By products
Actual Crush Value
Actual Crush Market Value Actual Crush P&L STO Qty Price Applicable for STO Qty Sold Qty Sold Qty Value Final Unrealized P&L Palm Kernel

PK Oil

PK Expeller

Residual

Soybean 550226 MVS XX NOV25 2030 970 3800 1.5

2000 1,45

SBM

78 756,60 567,45 643,11 75,66

75 1500 1125 1275 150

CSBO

18 174,60 261,90 349,20 87,30

20 400 580 800 220

RSBO

99 172,85 691,42 691,42 0,00

97 388 970 1552 582

--- 第59页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 59 of 162 Table 3.15 (End-of-Day) Unrealized Mark-to-Market P&L Report Contract ID Commodity Position Type Open Qty (MT) Contract Price (USD/MT) Market Price (USD/MT)
Unrealized P&L (Gross) Expenses Net Unrealized P&L Contract Currency

C0002 Palm Sales 500 160 USD/MT 170 USD/MT 5000 1500 3500 USD C0003 Soybean Purchase 700 400 USD/MT 410 USD/MT -7000 2100 -9100 USD

Note: Contract 550226 NOT part of this report since it has been Settled and Realized already

--- 第60页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 60 of 162

Table 3.16 (End-of-Day) Realized P&L Report BL + Linking + Invoice = Realized
Commodity Material
Mat Description Contract Contract Type
Batch Contract Qty in KG Realized Qty in KG Contract Price USD/KG Value in Doc. Currency Expenses Production Cost DPQS Adjustments Fx Rate
Realized P&L
Soybeans SB001 Soybeans Grade1 550226 Purchase
SB011203 5000 2970 1,28 3800,00 200,00 __ 125,00 1,00 4125,00

Result

Soybeans SB001 Soybeans Grade1 112 Purchase
SB011101 2000 500 10000 5000000,00 20000,00 __ 250000,00 1,00 5270000,00 Soybean Meal SBM001 Soybean Meal
23451 Sale SBM141101 1000 250 10000 2500000,00 10000,00 From PP order or from Batch Valuation. TBD 125000,00 1,00 2615000,00 Crude Soybean Oil CSBO001 Crude Soybean Oil - BULK 23452 Sale CSBO141101 1000 175 18000 3150000,00 15000,00 From PP order or from Batch Valuation. TBD 131250,00 1,00 3266250,00 Other Soy By- product

Soy hull 23453 Sale

Result

611250,00 Soybeans SB002 Soybeans Grade2 112 Purchase
SB011101 2000 500 10000 5000000,00 20000,00

250000,00 1,00 5270000,00 Soybean Meal SBM001 Soybean Meal
23451 Sale SBM141101 1000 280 10000 2800000,00 10000,00

125000,00 1,00 2915000,00 Crude Soybean Oil CSBO001 Crude Soybean Oil - BULK 23452 Sale CSBO141101 1000 145 20000 2900000,00 15000,00

131250,00 1,00 3016250,00

Result

661250,00

CPO PKO001 RBDPO Bulk 114 Purchase 2711003

CPO PKO001 RBDPO Bulk 23451 Sales 2711003

CRUDE PALM OIL 70000122 RBDPO BULK- PORAM 63 Sale

100 5 110 550,00 0,00

0,00 1,00 550,00 CRUDE PALM OIL 70000122 RBDPO BULK- PORAM 74 Sale

10000 100 20000,21 2000021,00 0,00

0,00 1,00 2000021,00

--- 第61页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 61 of 162 3.2 FX & Derivatives Management 3.2.1 Highlighted Key Business Requirements Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution ACM- 011 Ability to reconcile with Broker Statement received on price and quantity, margin will be provided by the broker and will not be reconciled Gap ACM Expense functionality / Broker Recon Solution
ACM- 043 Ability to prepare, obtain approval, and submit PRFs for broker payments during month-end closing Gap Need to discuss more in details (SAP BRCD) ACM- 052 Ability to calculate brokerage remuneration Fit Expense Management ACM- 071 Ability to capture and model OTC traded Swaps transactions: - Pay and/or Receive Fix Receive Float Fit SAP TRM - Transaction Manager ACM- 148 Ability to monitoring currency exposure: - View currency exposure and projected cashflows against hedges - Filter by instrument type, portfolio, strategy, and sub-strategy - Include all non-USD denominated trades for currency exposure - Include all non-CNY onshore rates for currency exposure (e.g., CBOT trades) - Include all instruments (Physical, Futures trades, etc.) - Monitor and report on tonnage and currency exposure across : * Open contracts (Physical and Commodity derivative) * Inventory/estimates/accruals * Shipped but not invoiced items * Invoiced items Fit SAP Cash Management integration with SAP Hedge Management
ACM- 149 Ability to manage FX positions: - Report position of financial trades - Compute and report delta-adjusted options positions - Track financial trade positions by product, instrument, and location - Manually allocate FX positions to other portfolios/books Fit SAP FX Transaction Management ACM- 150 Ability to manage FX settlements - View settlements with different banks on different payment dates - Process foreign currency remittance against purchase of goods Fit SAP FX Transaction Management ACM- 151 Ability to manage FX hedging activities: - Lock FX rate (Hedge Rate) for non-USD contracts - Capture NDF, FX Swap, and settlement transactions - Record hedging transactions - Generate reports based on broker statements Fit SAP FX Transaction Management

--- 第62页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 62 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution - Automate reconciliation to minimize manual SAP entries - Execute daily currency hedging with brokers - Manage local currency hedging specifically for USD transactions - Track and document FX hedging operations performed locally ACM- 152 Ability to manage non-treasury FX transactions - Process FX dealing for non-treasury originated transactions - Collaborate with Singapore on any OTC operations affecting India business Fit SAP FX Transaction Management ACM- 153 Ability to manage treasury-originated transactions - Process payroll transactions in SGD - Handle cash pool and interest transactions in CNH - Support BGN & RON transactions - Manage multi-currency payments (EUR, IDR, GBP, etc.) Fit SAP FI - Payments ACM- 154 Ability to manage options positions: - Expire options into futures - Capture exchange-traded options - Match using FIFO buy and sell options by strike Fit SAP TRM - Transaction Manager ACM- 202 Ability to capture futures trades: - Capture multiple futures trades (internal and external) - Copy down data in Excel-like grid format Fit ACM pricing ACM- 203 Ability to manage broker-related functions: - Capture futures broker and apply correct brokerage - Manually allocate trades from exchange to specific portfolios - Automatically allocate trades based on specific rules - Allow manual updates to automated allocations Fit Expense Management ACM- 205 Ability to enable tools for closing positions: - Manually select and close futures and options positions - Automatically close futures positions on FIFO basis - Break links between matched futures/options selectively Fit SAP TRM - Transaction Manager" ACM- 206 Ability to exercise futures contracts: - Manually exercise futures contracts into physical delivery - Support physical settlement using closing price of exercise date - Support physical settlement using purchase price Fit Manually close Futures Conract and open Physical Contracts

--- 第63页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 63 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution ACM- 207 Ability to handle exchange-specific settlements: - Realize futures PnL upon expiry date at closing price - Settle physical position into new contract at same closing price - Support 80%/20% settlement split for physical trades - Pay 80% at expiry date - Prevent scheduling until full payment (final 20%) received (Gap - validation groups at nomination but need to be customized) Gap Manually close Futures Conract and open Physical Contracts ACM- 208 Ability to configure CBOT products: - Configure products traded by GAI Proprietary Trading Desk: * CBOT - CORN (Futures & Options) * CBOT - ETHANOL * CBOT - RW WHEAT * CBOT - WHEAT (Futures & Options) - Configure products traded by China Desk: * CBOT - CORN (Futures & Options) * CBOT - ETHANOL * CBOT - RW WHEAT * CBOT - WHEAT (Futures & Options) Fit DCS ID config ACM- 209 Ability to configure China products: - Configure ZCE Exchange Products traded by China Desk: * ZCE - RM * ZCE - RO * ZCE - RS Fit DCS ID config ACM- 430 Ability to close out Futures and Options buy and sell positions by manually selecting positions. Fit Standard feature in Commodity Risk Management ACM- 431 Ability to manually exercise Futures contracts into physical delivery. - Physical settlement of some Exchange Futures using the closing price of exercise date, not purchase price - Other Exchanges still use purchase price Fit Maually close Commodity Futures and manually create physical contracts ACM- 433 View showing the settlement with different banks on the different payment date Fit SAP FX Transaction Management ACM- 434 Ability to report position of financial trades and compute and report on delta adjusted Options positions Fit SAP FX Transaction Management ACM- 449 For physical trades exercised from futures on DCE/ZCE, the ability to split the settlement into 80%/20% . The 80% will be paid at expiry date Gap "Minor Enhancement needed at the report to allow the functionality
80/20 split can be done at settlement level" ACM- 450 For DCE and ZCE, ability to realize a futures PnL upon expiry date at the closing price, and to settle the physical position into a new contract at that same closing price. The physical contract will have zero MtM Gap "Minor Enhancement needed at the report to allow the functionality
80/20 split can be done at settlement level" ACM- 452 Ability to autmatically allocate trades coming from the exchange to a specific portfolio based on specific rules (e.g. 1 account per Gap Manually enrich upload file for Derivative Trades upload

--- 第64页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 64 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution strategy/substrategy). The users should be able to manually update the allocation if needed ACM- 454 deal confirmation with value. Fit Standard feature in Commodity Risk Management ACM- 500 Ability to input premium in a currency that differs from the futures currency without system limitations Fit SAP TRM - Transaction Manager ACM- 501 Ability to support multiple currency combinations for premium and futures pricing Fit SAP TRM - Transaction Manager ACM- 502 Ability to maintain proper system setup to support different currency utilization in standard solution Fit SAP TRM - Transaction Manager ACM- 571 Ability to update SAP Cash Management from source transactions via native integrations in SAP S/4HANA Fit GAR to activate Cash Management Solution ACM- 572 Ability to use SAP Cash Management as data source for foreign exchange exposure management purposes Fit GAR to activate Cash Management Solution ACM- 573 Ability to segregate foreign exchange hedge management by different portfolios (Palm, Lauric, Oleo) using profit centers or segments Gap Custom Report ACM- 574 Ability to visualize foreign exchange exposures matched with foreign exchange hedges through Hedge Management Cockpit Fit Standard Solution Behavior ACM- 575 Ability to create hedge requests automatically or manually within Hedge Management Cockpit Fit Standard Solution Behavior ACM- 576 Ability to aggregate or split hedge requests into trade requests before forwarding to trading platform Gap No outbound integration with trading platform in absence of SAP TPI or Brisken ACM- 577 Ability to execute workflow from Hedge Request to Trade Request to SAP TPI to Trading Platform Gap No outbound integration with trading platform in absence of SAP TPI or Brisken ACM- 578 Ability to match notional values by value month as part of standard reporting Fit Standard Solution Behavior ACM- 579 Ability to compare contract rate with CMHK (pricing assumptions) in Bloomberg Gap Custom Report ACM- 580 Ability to manually upload unrealized amounts from bank into SAP Gap Excel upload via RICEFW Custom Program ACM- 581 Ability to reconcile foreign exchange exposure from source transactions Fit SAP standard solution ACM- 582 Ability to reconcile foreign exchange trades Fit SAP standard solution ACM- 583 Ability to reconcile net open exposure Fit SAP standard solution ACM- 584 Ability to utilize SAP Cash Management to fit requirements for FX Exposure Reconciliation Fit Standard Solution Behavior ACM- 585 Ability to classify foreign exchange trades as DF or NDF based on currency pair Fit Basic Config for Customization - GAR to

--- 第65页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 65 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution come back to SAP on full list with assignment as DF or NDF
ACM- 586 Ability to configure DF using SAP standard product type 60A (FX) with transaction type 102 (Forward) Fit SAP standard solution - Need to align with S4 team on product naming convention ACM- 587 Ability to configure NDF using SAP standard product type 60N (NDF) with transaction type 110 (NDF) Fit SAP standard solution - Need to align with S4 team on product naming convention ACM- 588 Ability to perform netting for settlement flows based on same bank, same value date, and same currency Fit SAP standard solution ACM- 589 Ability to auto trigger settlement postings from treasury side Fit SAP standard solution ACM- 590 Ability to support cross-currency hedging where one leg is always USD Fit SAP standard solution - Integration of Cash Management into Hedge Management will be standard ACM- 591 Ability to automatically calculate cash settlement amount based on contract rate, fixing rate, and notional buy/sell amounts Fit Certain stakholders will be give authorization to authorize the cash settlement amounts ACM- 592 Ability for authorized users to overwrite auto- calculated cash settlement amount to match with bank's amount Fit Certain stakholders will be give authorization to authorize the cash settlement amounts ACM- 593 Ability to confirm settlement amounts with banks and update if required Fit Certain stakholders will be give authorization to authorize the cash settlement amounts ACM- 594 Ability to execute trades on BMD (Bursa Malaysia Derivatives) by Singapore entity on behalf of India entity with back-to-back OTC between Singapore and India Fit Standard Feature ACM- 596 Ability to transfer positions from one directional portfolio to another in Soybeans and Bean business Fit Standard Solution Behavior ACM- 597 Ability to monitor Commodity Position Report by front office business users Fit Customization on Fields/Layout in Report needs to be solutioned further ACM- 600 Ability to perform broker statement reconciliation on T+1 Fit Assumption is to be processed manually in the interim, defer BRCD to Phase 2 ACM- 604 Ability to implement SAP Broker Reconciliation for Commodity Derivatives (BRCD) with Excel integration Fit Standard Solution Behavior

--- 第66页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 66 of 162 Req. No. Business Requirement Requirement Analysis (Fit/Gap) Solution ACM- 606 Ability to import clearing broker statements in defined Excel format through SAP Cloud Integration Fit Assumption is to be processed manually in the interim, defer BRCD to Phase 2 ACM- 682 Ability to integrate with Goldman Sachs trading platform for Sugar FX transactions Gap Manual integration between FX Trading Platform and SAP S/4HANA in absence of SAP TPI or Brisken ACM- 823 Ability to record and track broker guarantee arrangements where brokers cover payment risk for end customers, including broker liability limits and coverage terms Gap "Proposed solution is to have separate contracts for brokers and actual counterparties.
Actual Contracts can have Broker as bill-to party who inturn collects from the Counterparty" ACM- 836 Ability to use different FX rates for reporting (monthly) and inventory recording (invoice date) Fit Fx applied can be updated at individual load during LDC & Settlement. Fx Hedging is not done by GAR Pakistan. ACM- 862 Ability to execute FX hedging on behalf of suppliers/counterparties (for account of third party), with dual approach for own positions and logistics costs Fit 'Standard Solution Behavior

--- 第67页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 67 of 162 3.2.2 Business Process Flow This section provides the process flow diagram at BPH L4 with the detail information for each of the process steps.

3.2.2.1 Process FX Trade from Execution to Settlement

Figure 3.12 – Process FX Trade from Execution to Settlement Table 3.17 – FX from Execution to Settlement Process Steps Process Steps Role Transaction
Code/Fiori App ID Description Execute FX Trade FX Trader NA FX trades executed on external trading platforms or with banks e.g. Trades placed via Barclays (BARX) or directly with bank counterparties Create FX Trade FX Trade Control FTR_CREATE / Create Financial Transaction FX trades created in SAP S/4HANA using manual Integration between Trading Platform and SAP S/4HANA Trade Type as NDF / DF Identified FX Trade Confirmation FX Trade Control FTR_EDIT / Process Financial Transaction FX trades confirmed based on Bank’s Confirmation Market Data Import FX Trade Control TBEXN / Import Market Data Manual integration between Bloomberg and SAP S/4HANA to bring market data such as FX rates FX Exposure Management FX Trade Control TOENE / Hedge Management Cockpit SAP Exposure Management 2.0 acts as ‘data source’ for FX exposure management

--- 第68页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 68 of 162 Process Steps Role Transaction
Code/Fiori App ID Description Exposure captured and differentiated by different products such as Palm, Lauric etc. FX Hedge Management FX Trade Control Hedge Management Cockpit / TOENE Hedge Management Cockpit offers central visualization of FX exposures matched with FX Hedges Report split by product: Palm, Lauric, Oleo, etc. MTM Valuation Against FX FX Trade Control CMMF_EVAL_EOD / End- of-Day MtM Evaluation MTM valuation as per MTM Valuation Methodology MTM valuation for reporting on daily basis
MTM valuation for GL posting (unrealized gain/loss) on monthly basis Subsequent actions for ‘Net Open Exposure’ FX Trader Manage Hedge/Trade Requests Hedge Requests initiated by FX Trade Control for Net Open Exposure. Upon internal approval within Trade Control, Hedge Requests statuses are updated.

Potential Future Solution Upon internal approval within Trade Control, Hedge Requests are transferred as Trade Requests. Brisken Trade Automation transfers Trade Requests to Trading Platform (e.g. BARX) Determine NDF Fixing Date
FX Trade Control FTR_EDIT / Process Financial Transaction At inception, bank provides fixing date for NDF. Subsequent update possible at this stage.
Determine NDF Settlement Amount
FX Trade Control FTR_EDIT / Process Financial Transaction Update fixing rate provided by bank and verify NDF settlement amount. Update, if required, possible at this stage. Settle FX Based on Value Date FX Trade Control TBB1 / Post Flows Settlement for FX creates payment requests while updating General Ledger postings. Execute Payment Program for Payment Requests Treasury F111 / Payment Requests Open payment requests are cleared. Payment instructions sent to bank. General Ledger postings updated.

--- 第69页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 69 of 162 3.2.2.2 Process Commodity Derivatives Trade from Execution to Settlement

Figure 3.13 – Process Commodity Derivatives Trade from Execution to Settlement Table 3.18 – Derivatives Trade from Execution to Settlement Process Steps Process Steps Role Transaction
Code/Fiori App ID Description Monitor Commodity Position Report Commodity Trader RSRT / Query Browser Commodity Trader analyze the open quantities in joint commodity position report that shows positions across commodity physical contracts and commodity derivative contracts Execute Commodity Derivative Trade Commodity Trader NA Commodity derivative trades executed on external broker platforms Execute futures/ options trades via broker platforms Create Deal Slip Commodity Trader NA Traders provide trade summary and e-deal slips daily Deal slip mentions portfolio as well

--- 第70页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 70 of 162 Process Steps Role Transaction
Code/Fiori App ID Description Create Commodity Derivative Trade Trade Support
FTR_CREATE / Create Financial Transaction Commodity Derivative trades created in SAP S/4HANA using manual integration between Brokers’ Platforms and SAP S/4HANA Internal contract records, tagging legal entity, product etc. Portfolio from Deal Slip replicated as Futures Account in S/4HANA Supported operations: Contract creation, expiry, exercise Import Broker Statements via Excel Trade Support Import Statements Normalize data from Broker Statements into SAP templates Commodity Derivative Broker Reconciliation Trade Support Reconciliation Overview Daily T+1 matching of trades to broker statements Reconcile quantity, price, entity, and product details Reconcile Mismatched / Missing Records
Trade Support Monitor Business Logs Analyze the logs and take corrective actions by manually editing Commodity Derivative trades Adjustments based on manual reconciliation Commodity Derivative Trade Confirmation Trade Support FTR_EDIT / Process Financial Transaction Commodity Derivative trades confirmed after reconciliation with broker statements Market Data Import Trade Control TBEXN / Import Market Data Manual integration between Bloomberg and SAP S/4HANA to bring market data such as Commodity Futures prices End of Day Snapshots Trade Control CMM_DEND_SNAPSHOT / Manage EoD Snapshot Definitions Snapshot finalizes trade data; prerequisite for P&L preparation Finalizes day's contracts; must identify which contracts were closed/matched today Daily P&L Reporting Trade Control RSRT / Query Browser Custom reporting
Attribute P&L by product, trader, portfolio; track performance and limits Reconcile Broker P&L
Trade Control NA Manual reconciliation between SAP based report and broker P&L statements Verify mark-to-market calculations, realized and unrealized P&L Finalize P&L Trader RSRT / Query Browser Manual finalization of SAP based P&L reporting Perform Margin Calculations Trade Control PMVM / Variation Margin Run Initial margin calculated manually and differs by trade type (hedge, spread) Variation and close margin can be computed in SAP S/4HANA Generate Management / Financial Reporting Trade Control RSRT / Query Browser Pivot-based reports structured by tabs by product line

--- 第71页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 71 of 162 3.2.3 Solutioning 3.2.3.1 Solution Building Blocks High-level Solution Diagram is shown below:

Figure 3.14 - Solution Diagram

The solution relies on loosely coupled integrations between external systems and SAP S/4HANA. Users will download data from external systems in excels and further transform the data to prepare per SAP upload templates. Custom programs will be developed in SAP S/4HANA to consume the data in upload templates and create transactions in SAP S/4HANA.

Overall SAP solution for FX & Derivatives will include the following building blocks:

FX Transaction Manager Hedge Management

Download Commodity Market Data in excels Prepare per SAP upload template Custom program to upload FX Trades Custom program to upload Commodity Trades Standard feature to upload Commodity Market Data Standard feature to upload FX Market Data

Download Commodity trades in excels Prepare per SAP upload template

Download FX trades in excels Prepare per SAP upload template

Download FX Market Data in excels Prepare per SAP upload template

Download FX Raw Exposures in excels Prepare per SAP upload template

Standard feature to upload FX Raw Exposures

--- 第72页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 72 of 162 Table 3.19 - Solution Building Blocks Solution / Application Acronym Key Purpose SAP Agricultural Contract Management SAP ACM Process Commodity Physical Contracts Commodity Physical Contracts Reporting SAP Commodity Risk Management SAP CTRM Process Commodity Derivative Contracts Commodity Derivative Contracts Reporting SAP Treasury & Risk Management
SAP TRM Key Components:

FX Transaction Manager
Process FX Derivative Contracts FX Derivative Contracts Reporting

Hedge Management Process FX Exposures Joint Reporting between FX Exposures and FX Derivative Contracts Broker Reconciliation for Commodity Derivatives SAP BRCD Cloud-based solution for reconciliation between Broker Statements and Commodity Derivative Contracts in SAP CTRM SAP Financial Accounting SAP FI General Ledger posting update for FX & Derivative contracts Execution of payments for FX & Derivative contracts Integration with SAP Exposure Management 2.0 - Capture Raw FX Exposures from source transactions and pass to Hedge Management component in SAP TRM
Joint Reporting between Commodity Physical & Derivatives - Various SAP Standard reports available for out-of-the-box usage Additional Custom Reports planned to meet key business requirements around report data, report layouts, filters, aggregations etc.

--- 第73页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 73 of 162 3.2.3.2 Solution Building Blocks – Potential Future Solution Potential future solution – based on commercial alignment – will involve Brisken One Pilot solution for seamless integrations between external systems and SAP S/4HANA. Two solution components that will be deployed are:

Brisken One Pilot Trade Automation Offers Inbound integration between Trading Platforms and SAP S/4HANA to replicate FX & Derivative transactions

Brisken One Pilot Market Data Hub Offers Inbound integration between Market Data Providers and SAP S/4HANA to import FX & Derivative Market Data

Additional potential future solution – based on commercial alignment – will involve ‘Foreign Exchange Risk Management for Commodity Businesses’ (abbreviated as FOXI during initial development). It supports direct processing of FX Exposure from ACM contracts and further creation of FX Trade Requests. This bypasses layer of integration with Exposure Management 2.0 specifically for ACM contracts.

High-level Solution Diagram for this potential future solution is shown below:

Figure 3.15 - Potential Future Solution Building Blocks

In addition to SAP Solution building blocks mentioned in previous section, overall potential future solution for FX & Derivatives will include these additional building blocks:

FX Transaction Manager Hedge Management

--- 第74页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 74 of 162 Table 3.20 - Potential Solution Building Blocks Solution / Application Acronym Key Purpose Brisken One Pilot Trade Automation Brisken TA For FX Inbound integration between FX Trading Platforms and SAP TRM (FX Transaction Manager) to replicate FX Derivative Contracts Outbound integration between SAP TRM (Hedge Management) and FX Trading Platforms to replicate FX Trade Requests

For Commodity Derivatives Inbound integration between Commodity Broker Platforms and SAP CTRM to replicate Commodity Derivative Contracts Brisken One Pilot Market Data Hub Brisken MDH For FX Inbound integration between FX Market Data Provider (e.g. Bloomberg) and SAP TRM (FX Transaction Manager) to import FX rates, FX Swap Points etc.

For Commodity Derivatives Inbound integration between Commodity Derivative Market Data Provider (e.g. Bloomberg) and SAP CTRM to import Commodity Futures prices, Commodity Curves etc. Foreign Exchange Risk Management for Commodity Businesses SAP FOXI FX Exposure from ACM contracts (in foreign currencies) is directly captured and reported. Further integration to trigger FX Trade Request for such FX Exposure.

3.2.3.3 Organization Scope

For FX • FX trades are updated in GAI SG legal entity. • GAI SG can also perform FX trading on behalf of destination offices.

For Derivatives Commodity Derivatives trades are updated in following legal entities: • SG as much as possible • CN for certain DCE local entity requirements • MY for exchange delivery • ID starting recently ICDX CPO futures. For now, there are no derivative transactions in Indonesia.

3.2.3.4 Key Data Structures

For FX • Currency pairs traded often are EUR/USD, USD/IDR, USD/MYR, USD/BRL, USD/CNH, USD/COP, USD/JPY, USD/INR, USD/ZAR. This list is for indicative purpose only. • For SG, there are 15-20 brokers/banks/counterparties for FX trading. • Typical hedging instruments are FX Forwards (OTC), which are either deliverable (DF) or non-deliverable (NDF). • SAP standard product types 60A for DF and 60N for NDF will be copied into new and specific product types for FX trading pertaining to commodity operations.

--- 第75页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 75 of 162

For Derivatives Various Exchange-traded Commodity Derivatives are: • DCE – RBDO • BMD – CPO • ZCE – Rapseed Oil • CBOT – Soybean Oil, Soybean Meal • ICE – Sugar (Normal, White), Fuel Oil (Brent, Gas Oil) • ICDX - CPO This list is for indicative purpose only. For SG, there are 8 active brokers/banks/counterparties for Commodity Derivative trading. Every broker will have multiple accounts. Typical instruments for Commodity Derivatives are: • Listed Commodity Futures • Listed Commodity Options • OTC Swaps Clearing with Exchange • OTC with Counterparty • Short-dated options on CBOT There are various On-behalf/Back-to-back trading scenarios such as: • E.g SG trade on BMD on behalf of India, back-to-back OTC between SG and India • E.g. Oleo business may ask palm to hedge on behalf, back-to-back futures between the 2 portfolios • E.g. Transfer from directional portfolio to another in Soybeans and Bean business

3.2.3.5 Market Data Import Import of market data (such as FX rates) into SAP is a critical business activity. Users will manually download market data from Market Data Provider(s) into excel. Users will manually prepare upload file as per SAP upload template. Users will upload market data in SAP via standard feature.

For FX • Frequency of market data import will be for each working day. • Cut-off Time for import is set by currency pair, generally by 18:00 SGT • Market data provider is Bloomberg. • Scope of Market data covers Spot Exchange rates, Forward Points: Specifically matching with value dates of trades that are open. • Separate FX rate type will set up to differentiate between FX rates for ACM operations and those for FSCM operations

For Derivatives • Frequency of market data import will be for each working day based on SG calendar. • Cut-off Time for import is generally by 09:00 SGT • Market data provider is Bloomberg. • Scope of Market data covers Commodity Futures Prices, Commodity Options Prices, Commodity Curves.

--- 第76页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 76 of 162 3.2.3.6 FX Trade Creation Users will download trades from external Trading Platforms into excel. They will manually prepare upload file as per SAP upload template. Subsequently, users will upload trades in SAP via custom upload utility. The trades will be visible in SAP TRM. Sample screenshot below:

Figure 3.16 - FX Trade Creation 3.2.3.7 FX Trade Confirmation and Posting While standard SAP system supports generation and transmission of SWIFT based FX confirmation messages, for this solution, business has preference to receive trade confirmation from banks and subsequently update status of FX trades in SAP S/4HANA. This is a simpler and straight forward process.

Figure 3.17 - FX Trade Creation Process

For internal trade approval, Trade Control will use the ‘Settle’ feature in SAP TRM. This essentially follows a 4 eye check / maker-checker concept. Confirmation number provided by bank can be captured as ‘External Reference’ on FX trade in SAP.

In order to intimate users when they are supposed to act/approve, following options are available: • ‘Alert Monitor’ feature in SAP TRM • Situation Handling Framework in SAP • Both of these features can be deployed in parallel

Deal Capture and Accounting Postings On the day of FX deal creation: There is no accounting posting. The activity remains at “Contract” status. Back office performs verification and changes the status to “Settled”.

--- 第77页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 77 of 162 On settlement / value date: Accounting postings are automatically generated based on the type of settlement (Deliverable Forward or NDF). For Deliverable Forward (DF): Buy leg (flow 1000) and Sell leg (flow 2000) are posted separately, along with any realized gain/loss. For NDF: Only the net cash settlement (flow type 1031) is posted; principal legs are marked “not relevant for posting”.

For Singapore operations, settlement and optimization are often performed at month-end; value dates will be aligned accordingly.

Automation of journal posting: The system will be configured with a background job that runs periodically (e.g. every 15 minutes) to automate journal postings instead of manual triggering.

3.2.3.8 FX Exposure Management Sources of FX exposure include • Logistics transactions in foreign currencies such as ACM contracts, Purchase Orders, Sales Orders • Finance transactions e.g. invoices in foreign currencies • Commodity Derivative transactions denominated in foreign currencies • Other FX Exposures that business prefers to identify when there is no logistics contract yet

Business users will prepare FX exposures as per SAP upload template manually. SAP offers standard feature to upload Raw Exposures in SAP S/4HANA via Excel. FX exposures may be aggregated & netted prior to upload in SAP S/4HANA.

Figure 3.18 - FX Exposure Management Among all different source transactions, the volume of ‘Commodity Derivative transactions denominated in foreign currencies’ is expected to be the highest. A custom integration will be provided to automatically create Exposure for these source transactions.

It is also possible to manually enter or adjust the Raw Exposure in SAP directly. This can be used for quick update to Raw Exposure that is already uploaded. This can also be used for quick entry of couple of Raw Exposures in SAP.

How FX exposure is hedged depends on portfolio. Typical variations are: • Hedged individually (Sugar) • Aggregated by month > hedged • Aggregated by month > netted > hedged (mostly except Sugar)

Criteria for differentiating FX exposures are: • Legal Entity – GAI SG • Risk Currency
• Portfolio

--- 第78页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 78 of 162 Risk currency and risk-free currency for FX exposure depends on portfolio e.g. Euro entity trading in USD, then USD becomes an exposure (risk currency). Each portfolio will have local currency that will be risk-free currency. Any currency that is not equal to risk-free currency of portfolio will be relevant for hedging.

--- 第79页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 79 of 162 3.2.3.9 FX Hedge Management FX transactions (trades) update Hedge Management via native integrations in SAP S/4HANA Hedge Management Cockpit offers central visualization of FX exposures matched with FX Hedges

Figure 3.19 - FX Hedge Management

Following key figures will be monitored for Hedge Management i.e. matching • Incoming Exposure • Outgoing Exposure • Net Exposure • Net Hedges • Net Open Exposure • Hedged Rate (weighted average) • Hedge Quota [%]

Target quotas are not used at present, but will be good to have in future: • Fixed quotas e.g. 80% across all months or • Based on time buckets e.g. X% for FX exposures in next 1 month, Y% for next 2 months

Exposures will be split by portfolio: Palm, Lauric, Oleo, etc. FI and Cahs Management project team to ensure different profit centers or segments are being derived for different portfolios for the source transactions.

--- 第80页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 80 of 162 Sample Hedge Management Cockpit report below:

Figure 3.20 - Sample Hedge Management Cockpit Drilldown from high level into details:

Figure 3.21 - Sample Hedge Management Cockpit (Details)

--- 第81页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 81 of 162 3.2.3.10 q ‘ ’ Hedge Management Cockpit shows the ‘Net Open Exposure’ which will need further treatment based on hedging policy. If the net open exposure needs to be hedged further, Trade Control will initiate Hedge Requests. Upon internal approval within Trade Control, Hedge Requests statuses are updated.

Potential Future Solution Upon internal approval within Trade Control, Hedge Requests are transferred as Trade Requests. Brisken Trade Automation transfers Trade Requests to Trading Platform (e.g. BARX).

Figure 3.22 - Potential Future Solution

SAP supports automatic / manual creation of Hedge Request within Hedge Management Cockpit. Hedge Requests can be aggregated/split into trade requests before forward to trading platform.

--- 第82页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 82 of 162 Sample screenshot of Hedge Request process below: Manual Creation from Hedge Management Cockpit

Figure 3.23 - Hedge Request Process Attributes of FX Hedge Request

Figure 3.24 - Attributes of Hedge Request

--- 第83页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 83 of 162

Process Hedge Request / Transfer as Trade Request

Figure 3.25 - Process Hedge Request

--- 第84页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 84 of 162 3.2.3.11 FX MTM Valuation MTM valuation will be performed as per MTM Valuation Methodology. MTM valuation for reporting will be on daily basis whereas MTM valuation for GL posting (unrealized gain/loss) will be on monthly basis. Unrealized posting will be reversed as on 1st day of next month.

If business prefers not to calculate unrealized valuation for GL posting within SAP, but to rely on bank provided values, such approach is also possible. SAP provides a way for manual upload of unrealized MTM from bank into SAP.

CMHK rates from Bloomberg for different value dates as per open contracts will be used for MTM valuation.

Key Points • SAP will perform two types of FX valuation: o Daily valuation – Updates reporting only (no accounting posting). o Month-end valuation – Generates accounting postings, with automatic reset on the 1st day of the next month. Updates both TRM and GL reporting. • Both valuations apply to open unsettled FX positions. • Month-end valuation can use FX rate method (interpolated swap rates) or NPV method. • Valuation reports are available under TRM and can be executed ad-hoc by users.

3.2.3.12 FX Settlement Identify DF vs NDF FX trades are classified as Deliverable Forwards (DF) or Non-deliverable Forwards (NDF) • Based on Currency pair o More liquid will be DF, not so liquid will be NDF o MYO is DF, MYR is NDF o For Sugar, BRL is NDF • Business has clarity over which currency or currency pair is DF or NDF. This is also based on government regulations.

During FX placement, the classification as DF vs NDF is known. Users will classify trades as DF or NDF while preparing the upload file for upload of FX trades.

Potential Future Solution Brisken Integration from FX Trading Platforms into SAP S/4HANA will consider such classification and will use appropriate DF or NDF product type while replicating FX trade into SAP.

For DF: Copy of SAP standard product type 60A (FX), transaction type 102 (Forward) will be used

Figure 3.26 - FX Transaction 60A/102

For NDF: Copy of SAP standard product type 60N (NDF), transaction type 110 (NDF) will be used

--- 第85页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 85 of 162

Figure 3.27 - FX Transaction 60N/110

Determine NDF Fixing Date
NDF fixing date is generally T-2 for all major currency pairs. SAP supports T-2 formula. However, SAP also offers flexibility where authorized users can update the appropriate fixing date in NDF contract. This may be required if T-2 is declared as non-working day subsequent to initial creation of trade.

Users will update appropriate NDF Fixing Date while preparing the upload file for upload of FX trades.

Potential Future Solution When FX trade is being replicated by Brisken Trade Automation, the integration logic will copy NDF fixing date from Bloomberg into SAP trade.

Calculate NDF Final Settlement Amount SAP auto calculates Cash Settlement amount for NDF based on Contract Rate, Fixing Rate and Notional buy & sell amounts. SAP also provides a feature where authorized users can overwrite auto calculated Cash Settlement amount (so as to match with bank’s amount). Users can confirm Settlement Amounts with the Banks at this stage, and update if required. Local currency of legal entity will be used as settlement currency for Cash Settlement of NDF SAP provides feature to perform net settlement of inflows/outflows with same bank for same value date and in same currency.

NDF Processing Fixing is done on the fixing date using transaction DXV5 or via collective/batch processing for mass updates. Only net USD (or settlement currency) cash flow is exchanged with external counterparties. Accounting posting occurs only for the cash settlement difference (flow 1031).

Automatic FX Settlements During FX settlements, GL postings are updated, and payment requests are generated in SAP. These tasks are considered as routine tasks. Many customers trigger these postings as overnight background jobs.

Treasury Payments Once payment requests are generated, Treasury user group is responsible to execute settlement instructions with banks. In this, Payment Program for Payment requests is executed (SAP transaction F111). Again, these tasks are considered as routine tasks. Many customers trigger the payments as overnight background jobs. Subsequent payment approvals are performed by authorized signatories.

3.2.3.13 Rollover Mechanism for FX Forwards upon or nearing Maturity
SAP offers standard rollover future for FX Forwards. Trader can update the new maturity date and other attributes for rollover transaction. FX trade in SAP gets updated with new status ‘Rollover’. The original trade and rolled over trade are interlinked with each other automatically.

--- 第86页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 86 of 162 3.2.3.14 FX Intra-company Transactions Business requires certain FX transactions that are between two portfolios (e,g. between R1, R2, R3 portfolios) falling under same legal entity. These are intra-company FX transactions. Settlement may not be executed for such intra-company FX transactions.

SAP standard supports FX transactions either with external counterparties or with inter-company. Intra-company FX transactions are not available in SAP standard. In order to support intra-company FX transactions in SAP, additional master data such as business partners, profit centers representing intra-company entities (such as portfolios) will be needed. Additiona FX Swap Creation Standard transaction TX10 – Create FX Swaps is used to capture both external and internal FX swaps. A single transaction automatically creates two linked deals (near leg and far leg). For internal portfolio-to-portfolio transfers, a custom upload program will be developed for automation. Users can enter notional in either currency; the system auto-generates the opposite leg. Swap rates are captured as spot rate + swap points. Upon saving, two transaction numbers are generated and linked via a common SWP reference (visible in report TBRL).l customizing settings will be needed to differentiate intra-company FX from external FX transactions and to disable settlements for intra-company FX.

Internal / Intercompany Deals • Usually netted via GL accounts and settled internally. • Typically treated as deliverable and netted to zero (or minimal cash movement). • NDF mechanism is mainly for external counterparties.

3.2.3.15 FX Swap and NDF Swap Transactions

FX Swap Creation • Standard transaction TX10 – Create FX Swaps is used to capture both external and internal FX swaps. • A single transaction automatically creates two linked deals (near leg and far leg). • For internal portfolio-to-portfolio transfers as well as for external Swap transactions, a custom upload program will be developed for automation. • Users can enter notional in either currency; the system auto-generates the opposite leg. • Swap rates are captured as spot rate + swap points. • Upon saving, two transaction numbers are generated and linked via a common SWP reference (visible in report TBRL).

Internal vs External Swap Transactions External: Uses custom product type (e.g. Z0A) with external counterparty. Internal: Uses custom product type (e.g. Z0I). Portfolios are mandatory fields. Full internal transfers (e.g. P1 to P11) may require four linked transactions; this will be handled programmatically via the custom upload program.

Process Flow Confirmation Create FX Swap contract → Settlement contract (back-office verification) → Post journal → Settle (cash) → Post journal differences (if any).

--- 第87页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 87 of 162 3.2.3.16 Commodity Derivative Order Management Traders base their commodity derivative trading decisions on commodity exposures from logistics transactions Commodity Position Report in SAP S/4HANA provides information on commodity exposures and positions, including existing hedges. This Report will be monitored by front office business users (traders).

Figure 3.28 - Commodity Derivative Order Management

3.2.3.17 Commodity Derivative Trade Creation Traders receive trade summary and e-deal slips from brokers via emails. Traders provide trade summary and e-deal slips to Trade Support and Control Team via emails. Deal slip mentions portfolio as well.
Users will download trades from external Trading Platforms into excel. They will manually prepare upload file as per SAP upload template. Subsequently, users will upload trades in SAP via custom upload utility. The trades will be visible in SAP CTRM. Portfolio from Deal Slip will be manually updated in update file as Futures Account in S/4HANA.

3.2.3.18 Commodity Derivative Broker Reconciliation Broker statements are received in different which formats: PDF, Excel, CSV. Manual activity will be needed to normalize data from Broker Statements into SAP templates (Excel). There may be possibility to explore Excel macros for its automation. Broker Statements as per SAP template (Excel) will be imported in SAP BRCD tool through SAP Cloud Integration. SAP BRCD performs Broker Statement Reconciliation. Manual adjustments, manual reconciliation is possible for mismatched or missing records. Also, clearing statement based Long/Short Matching is also available.

Figure 3.29 - Commodity Deriative Broker Reconciliation

3.2.3.19 Timeline for Commodity Derivative Trade in SAP For a trade executed on T0 • Traders send deal slips by end of day • Trades may not be created in system on T0 • Trade Support will create trades in system on T+1 • Broker statement reconciliation on T+1 • MTM and P&L reporting happens by key date (report execution can be back-dated)

Monitor Commodity Position Report Commodity Position Report Commodity Derivative Trade Execution Commodity Derivative Trade in S/4

--- 第88页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 88 of 162 3.2.3.20 End of Day Snapshots Snapshot feature will transfer Commodity Derivative transactions and positions into End of Day (EoD) reporting framework. Each snapshot taken at the end of the business day reflects the transactions and the changes made since the previous snapshot. Newly created, closed, matched transactions are automatically updated in snapshot.
Frequency of snapshot will be EoD. Different cut-off time may be set up for different legal entities (SG, CN, MY), e.g. 6 pm SGT Once EoD snapshots are ready and market data is imported, End-of-Day Evaluations can be executed. This prepares and stores data for End-of-Day Reporting.

3.2.3.21 P&L Reporting and Attribution SAP delivers standard reports as queries that run on underlying Commodity Derivative transactions. However, standard reports may not be sufficient for business specific layout and information needed Specifically, the slice and dice of P&L (called as P&L attribution) may not be available at dimensions (attributes) that business requires.

Custom reporting will be developed to meet P&L reporting and attribution requirements.

Following P&L Attributes will be set up in custom report: • Level 1: Legal Entity • Level 2: LoB – e.g. SG (Palm, Lauric, Beans) • Level 3: Portfolio (lowest level of P&L attribution) – e.g. SG / LoB Beans / Portfolio 1, 2, 3 Portfolio: Trader relationship is mostly n:1. P&L attribution to Trader is indirect through Portfolio.

Custom report will also include feature for tracking P&L performance based on: • Realized P&L • Open contacts (unrealized) MTM • DoD, MTD YTD P&L Custom report will also include feature for tracking position limits: • External Limits – from exchanges • Monitor futures notional and options delta adjusted notional against external limits • External Limits split into Internal Limits • Internal Limits – attributed at level of Legal Entity / LoB

3.2.3.22 Broker P&L Reconciliation Brokers provide P&L statement for positions held with them. Business performs reconciliation of broker provided P&L with system calculated P&L. Custom P&L report in SAP provides system based details of P&L. Business users will manually reconcile the SAP based report with broker P&L statements. Such reconciliation will be used to verify mark-to-market calculations, realized and unrealized P&L.

--- 第89页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 89 of 162 3.2.3.23 Margin Management for Commodity Derivatives Margin Management in SAP offers support for different type of margin flows: Initial Margin, Variation Margin and Close Margin.

Initial Margin will be calculated outside SAP by referring to details from broker. It differs by trade type (hedge, spread). It will be entered as ‘additional flow’ in SAP transaction.

Variation Margin represent daily gains and losses of open positions. It is derived by comparing the values of the open position from the previous day with the current date. SAP automatically calculates Variation Margin.

Close Margin represents the profit and loss of closed positions compared to the previous day. SAP automatically calculates Close Margin.

Margin flows will not be posted into accounting. Those are used to estimate cashflows.
Margin calls (top-ups) or removal of excess cash will be through treasury route.

3.2.3.24 Physical Delivery from Futures Physical delivery from futures is also referred as: • Paper hedge from TRM into ACM • Take Delivery from Exchange • EFP [Exchange for Physical] Scenario variations exist such that, ‘Take Delivery from Exchange’ happens upon maturity of futures contract whereas EFP may happen on any day prior to the maturity of futures contract.

SAP solution of this scenario involves two separate and loosely coupled transactions that do not directly link with each other. The futures contract does not convert into a physical contract, as they remain distinct transactions throughout the process between TRM and ACM. • Derivatives Side (TRM): The futures contract maintains a clearing party throughout its lifecycle. When taking delivery, you notify the exchange of your intent to take delivery. The exchange then closes out the contract with MTM being realized and posted separately. Multiple contracts with long and short positions can be netted to determine the total delivery quantity required. For EFP scenario, traders agree with farmers regarding transfer of futures positions. Subsequently, traders provide such transfer instructions to brokers. Brokers execute the transfer instructions wherein the futures positions are transferred to farmers account. • Physical Side (ACM): A separate transaction is created for the actual delivery process. The exchange provides delivery details at maturity, including warehouse location, vendor information, and contact details. The exchange acts as an underwriter only, and the actual delivery risk transfers to third-party logistics providers. Physical delivery becomes a pure logistics transaction with no relation to the derivative transaction.

Future State Solution: Contracts can be tagged with specific transaction types such as EFP “transaction type”. The system can monitor contracts that are expected to be exercised within Ex. the next two to three months. Upon contract exercise or expiry, an ACM contract will be created for physical delivery. The two halves remain separate, with derivatives handled by TRM and physical deliveries managed through logistics systems.

--- 第90页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 90 of 162 A to-be process flow diagram showing the end-to-end EFP process is depicted below:

Figure 3.30 - Exchange for Physical (EFP) Flow

There may be an opportunity to implement automated physical contract creation via API upon futures contract expiry. The derivative contract structure can accommodate configurable fields for storing physical contract parameters, specifically: • Delivery location details • Valuation point configurations This will be possible though simple custom development. There are other standard text fields in derivative contract structure that may as well be used after we get confirmation from team implementing overall S4 TRM that they do not intend to use those standard fields for other purpose. We can park this discussion for project realization phase.

The idea is, availability of above mentioned fields would enable seamless automated conversion from derivatives to physical contracts, enhancing the efficiency of the EFP process flow. However, this will need to be discussed during realization phase with business input. Specifically, there may not be practical use case for such automation. Above idea assumes one futures contract may be converted to one physical contract (automatically). In reality, multiple futures contracts (and even manage long / short positions) may be combined to form one physical contract. Such scenario will need complex development and that will be justified only if such scenario will be used heavily.

3.2.3.25 Rollover Mechanism for Futures upon Expiry SAP solution for this is straightforward. Essentially, trader will close futures contracts that are getting expired and open new futures contracts with later expiries. Two trades will be updated in S/4 – one for closure, another for open. If required, the two traders can be referenced together via a common identifier. This is commonly used for Palm Kernel and Sugar Futures.

--- 第91页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 91 of 162 3.2.3.26 Commodity Derivatives Reporting Following approach will be followed for operational reporting for Commodity Derivatives: • SAP standard reporting to be leveraged – as much as possible • Query Reporting in SAP Commodity Analytics • Additional Standard Reports in Commodity / Treasury & Risk Management • Standard Query Reporting to be adjusted based on business requirements • Extensibility of SAP Standard Reports available – in line with SAP Clean Core Methodologies • Additional custom developed reports may be explored based on criticality of business requirements The high level approach for reporting of Commodity Physicals, Derivatives and Union is outlined below. SAP offers certain standard reporting queries for certain areas as shown below. These queries can be adjusted based on specific business requirements. For certain other areas, standard reporting queries are not available and custom reports will be needed (marked custom in table below). Table 3.21 - Commodity Reporting Physical Derivatives Union (Physical + Derivatives) Position Standard Standard Standard Unrealized (MTM) Standard Standard Standard Realized Custom Standard Custom Slate (Position + Unrealized) Standard NA NA Unrealized (MTM) + Realized NA Custom Custom

3.2.3.27 Commodity Group Attribute in Reporting Business requires Commodity Group attribute in certain reporting. A Commodity Group will be at higher level than individual commodity and multiple commodities will be assigned to a Commodity Group (n:1 relationship). Values such as position, MTM etc. for individual commodities can be rolled up to higher level Commodity Group.

SAP solution for such custom attributes such as Commodity Group involves setting up ‘Free Characteristics’ (FCs). FCs can be activated separately in Commodity Physical transactions and in Commodity Derivatives transactions. Individual transactions can have value of FC (e.g. Commodity Group) either entered manually or derived automatically. For Commodity Derivatives transactions, rule based derivation of FC is available.

FC such derived, will be available for reporting down the line. During set up, FC from Commodity Physical side and Commodity Derivatives side will be aligned. FC from both these areas will be available in reporting. Further aggregation based on FC will be available in reporting.

3.2.3.28 Commodity Futures Intra-company Transactions Business requires certain Commodity Futures transactions that are between two portfolios (e,g. between R1, R2, R3 portfolios) falling under same legal entity. These are intra-company Commodity Futures transactions. Settlement may not be executed for such intra-company Commodity Futures transactions.

SAP standard supports Commodity Futures transactions either with external counterparties or with inter-company. Intra-company Commodity Futures transactions are not available in SAP standard. In order to support intra-company Commodity Futures transactions in SAP, additional master data such as futures accounts, business partners, profit centers representing intra-company entities (such as portfolios) will be needed. Additional customizing settings will be needed to differentiate intra-company

--- 第92页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 92 of 162 Commodity Futures from external Commodity Futures transactions and to disable settlements for intra-company Commodity Futures.

3.2.3.29 Product Specific – Sugar The overall business process design and proposed solutions for FX & Derivatives will be adopted for Sugar business (for now it is deferred). Specifics for Sugar that will need to be incorporated in solution are: • Commodities: New York 11 (raw sugar) and London 5 (refined sugar) on ICE Exchange • Broker statements from MAREX • FX Trading Platform – Goldman Sachs

3.2.3.30 Key Custom Developments Following key custom developments are identified.

Reports 1. Broker P&L Reconciliation with P&L Attribution 2. Custom Query for Reporting based on Options Delta 3. Custom Query for Derivatives Realized + Unrealized MTM 4. Custom Query for Union Realized P&L 5. Custom Query for Union Realized + Unrealized MTM 6. FX Hedge Management by Custom Attributes 7. Compare FX contract rate with CMHK (pricing assumptions) in Bloomberg 8. Placeholder Management Reports for Commodity Derivatives 1 9. Placeholder Management Reports for Commodity Derivatives 2 10. Placeholder Management Reports for Commodity Derivatives 3

Integrations None

Conversions None

Enhancements 1. FX Trades Upload Utility 2. Derivatives Trades Upload Utility 3. Physical Contract Creation via API upon EFP Futures Expiry 4. Upload FX unrealized from Bank into SAP 5. Capture FX exposure from Commodity Derivatives into Exposure Management
6. Mass NDF Fixing Utility

Forms None

Workflows None

--- 第93页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 93 of 162 3.2.3.31 Role & Authorization Concept SAP standard business roles for Fiori will be leverages for FX and Derivatives. These include distinct roles for: • Front office users • Middle office users • Back office users • Risk Management users • Managers SAP standard offers framework where standard transaction codes and Fiori apps are pre-assigned to standard roles. Based on specific business requirements, copies of these standard roles will be modified while keeping in mind segregation of duties (SoD)

One or more roles will be assigned to business roles based on level of access required. Certain roles to user assignments may be ‘display only’ especially only when reporting access is sufficient and transaction processing access is not required.

--- 第94页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 94 of 162 3.2.3.32 Journal Postings for FX Detailed set up of SAP GL accounts will be discussed during S/4 implementation and will be configured in SAP system accordingly. Below are the journal postings scenarios for FX.

Accounting Configuration & Reporting • Accounting posting setup (GL accounts, flow types, update types) will be configured based on business requirements. • Exact GL codes will be finalized in consultation with the FI Chart of Accounts team. • Seamless navigation from TRM to FI accounting documents. • Payment details are derived from the Business Partner master. • Bank reconciliation will be driven by value dates (not strictly month-end).

--- 第95页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 95 of 162 3.2.3.32.1 Closure of Deliverables Forward (without Fixing)

Table 3.22 - FX Closure of Deliverables Forward (without Fixing) As-Is To-Be Proposed

Transaction Dr/Cr GL Account GL Description Curr. Amount
SAP Rate

Transaction Dr/Cr GL Account GL Description Curr. Amount
SAP Comments

Currency Purchase Dr
13010010 Recoverables - GAITL EUR 1.000.000,00
1,1750
1.175.000,00
Currency Purchase Dr
13010010 Recoverables - GAITL EUR 1.000.000,00
Standard Cr
200573 FX broker
EUR - 1.000.000,00
1,1750
Cr
200573 FX broker
EUR - 1.000.000,00
Currency Sell Dr
200573 FX broker
USD 1.150.000,00
Currency Sell Dr
200573 FX broker
USD 1.150.000,00
Standard Cr
13010010 Recoverables - GAITL USD - 1.150.000,00
- 1.150.000,00
Cr
13010010 Recoverables - GAITL USD - 1.150.000,00
Realized Gain/Loss Posting Dr
71210010 Realised Forex
USD 25.000,00
Realized Gain/Loss Posting Dr
71210010 Realised Forex
USD 25.000,00
Standard Cr
13010010 Recoverables - GAITL USD - 25.000,00
- 25.000,00
Cr
13010010 Recoverables - GAITL USD - 25.000,00

Incoming Payment Dr
Bank
USD
1.150.000,00

Incoming Payment Dr
Bank
USD
1.150.000,00
Standard Cr
200573 FX broker
USD - 1.150.000,00

Cr
200573 FX broker
USD - 1.150.000,00

Outgoing Payment Dr
200573 FX broker
EUR
1.000.000,00

Outgoing Payment Dr
200573 FX broker
EUR
1.000.000,00
Standard Cr
Bank
EUR
- 1.000.000,00

Cr
Bank
EUR
- 1.000.000,00

--- 第96页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 96 of 162 3.2.3.32.2 Closure of Deliverables Forward (with Further Fixing)

Table 3.23 - Closure of Deliverables Forward (with Further Fixing)

As-Is To-Be Transaction Dr/Cr GL Account GL Description Curr. Amount
SAP Rate

Transaction Dr/Cr GL Account GL Description Curr. Amount
SAP Comments

Currency Purchase Dr 13010010 Recoverables - GAITL EUR 500.000,00 1,1750 587.500,00 Currency Purchase Dr 13010010 Recoverables - GAITL EUR 500.000,00 Standard Cr 200573 FX broker EUR -
500.000,00 1,1750

Cr 200573 FX broker EUR -
500.000,00 Currency Sell Dr 200573 FX broker USD 575.000,00 Currency Sell Dr 200573 FX broker USD 575.000,00 Standard Cr 13010010 Recoverables - GAITL USD -
575.000,00 -
575.000,00 Cr 13010010 Recoverables - GAITL USD -
575.000,00 Realized Gain/Loss Posting Dr 71210010 Realised Forex USD -
12.500,00 Realized Gain/Loss Posting Dr 71210010 Realised Forex USD -
12.500,00 Standard Cr 13010010 Recoverables - GAITL USD 12.500,00

12.500,00 Cr 13010010 Recoverables - GAITL USD 12.500,00

25.000

Incoming Payment Dr

Bank USD 575.000,00

Incoming Payment Dr

Bank USD 575.000,00 Standard Cr 200444 FX broker USD -
575.000,00 Cr 200444 FX broker USD -
575.000,00

Outgoing Payment Dr FX broker EUR 500.000,00 Outgoing Payment Dr FX broker EUR 500.000,00 Standard Cr Bank EUR -
500.000,00 Cr Bank EUR -
500.000,00

Direct FI Posting Dr

GAITL USD 25.000,00

Direct FI Posting Dr

GAITL USD 25.000,00 Standard - FI

Cr

Recoverables USD -
25.000,00

Cr

Recoverables USD -
25.000,00

--- 第97页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 97 of 162 3.2.3.32.3 Closure of Non-Deliverables Forward

Table 3.24 - Closure of Non-Deliverables Forward As-Is To-Be Proposed

Transaction Dr/Cr GL Account GL Description Curr. Amount
SAP Rate

Transaction Dr/Cr GL Account GL Description Curr. Amount
SAP Comments

Posting of Cash Settlement Dr
200444 FX broker
USD 9.600,86

Posting of Cash Settlement Dr
200444 FX broker
USD 9.600,86
Standard Cr
13010010 Recoverables
USD - 9.600,86
- 9.600,86
Cr
13010010 Recoverables
USD - 9.600,86

9.600,86

Incoming/ Outgoing Payment Dr
Bank
USD
9.600,86
Incoming/ Outgoing Payment Dr
Bank
USD
9.600,86
Standard Cr
200444 FX broker
USD - 9.600,86

Cr
200444 FX broker
USD - 9.600,86

Direct FI Posting Dr
Recoverables
USD
9.600,86

Direct FI Posting Dr
Recoverables
USD
9.600,86
Standard - FI Cr
GAITL USD
- 9.600,86

Cr
GAITL USD
- 9.600,86

--- 第98页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 98 of 162 3.2.3.32.4 Month end MTM valuation involving all open FX deals (i.e. Both DF and NDF)

Table 3.25 - Month-End MtM Valuation involving All Open FX Deals (i.e. Both DF and NDF) As-Is To-Be Proposed

Transaction Dr/Cr GL Account GL Description Amount Transaction Dr/Cr GL Account GL Description Amount SAP Comments

One leg of the Unrealized Gain/Loss Posting will be on P&L Account and the other leg on the balance sheet account as per SAP Standard. By passing P&L requires custom development Unrealized Gain Dr
15010012 Derivative Receivable A/c
Unrealized Gain Dr Unrealized Gain/Loss Account

Cr

GAITL

Cr

PnL Account

One leg of the Unrealized Gain/Loss Posting will be on P&L Account and the other leg on the balance sheet account as per SAP Standard. By passing P&L requires custom development Unrealized Loss Dr
GAITL Unrealized Loss Dr PnL Account

Cr
34010013 Derivative Payable A/c

Cr Unrealized Gain/Loss Account

--- 第99页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 99 of 162 3.2.3.33 Journal Postings for Derivatives Detailed set up of SAP GL accounts will be discussed during S/4 implementation and will be configured in SAP system accordingly. Below are the journal postings scenarios for Derivatives.

3.2.3.33.1 Closure of Futures

Table 3.26 - Closure of Futures As-Is To-Be Proposed

Transaction Dr/Cr GL Account GL Description Amount Transaction Dr/Cr GL Account GL Description Amount SAP Comments

Realized Future Gains Dr XXXX Broker

Realized Future Gains Dr Clearing Account

Standard - As-Is Accounting Schema is broken down to 2 accounting entries: Realized Gain/Loss Postings and Incoming/Outgoing Payment

SAP does not post to Broker Account, instead Balance Sheet Account

Cr XXXX Recoverables

Cr Recoverables

Dr XXXX Recoverables Incoming Payment Dr Bank/ Margin Account

Cr XXXX GAITL

Cr Clearing Account

Direct FI Posting Dr Recoverables

Standard - FI

Cr GAITL

Realized Future Losses Dr XXXX Recoverables

Realized Future Loss Dr Recoverables

Standard - As-Is Accounting Schema is broken down to 2 accounting entries: Realized Gain/Loss Postings and Incoming/Outgoing Payment

SAP does not post to Broker Account, instead Balance Sheet Account

Cr XXXX Broker

Cr Clearing Account

Dr XXXX GAITL
Outgoing Payment Dr Clearing Account

Cr XXXX Recoverables

Cr Bank/ Margin Account

Direct FI Posting Dr GAITL

Standard - FI

Cr Recoverables

--- 第100页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 100 of 162 3.2.3.33.2 Month end MTM valuation for Open Futures position

Table 3.27 - Month-End MtM Valuation for Open Futures Position As-Is To-Be Proposed

Transaction Dr/Cr GL Account GL Description Amount Transaction Dr/Cr GL Account GL Description Amount SAP Comments

One leg of the Unrealized Gain/Loss Posting will be on P&L Account and the other leg on the balance sheet account as per SAP Standard. By passing P&L requires custom development Unrealized Gain Dr
15010012 Derivative Receivable A/c
Unrealized Gain Dr Unrealized Gain/Loss Account

Cr

GAITL

Cr PnL Account

One leg of the Unrealized Gain/Loss Posting will be on P&L Account and the other leg on the balance sheet account as per SAP Standard. By passing P&L requires custom development Unrealized Loss Dr
GAITL Unrealized Loss Dr PnL Account

Cr
34010013 Derivative Payable A/c

Cr Unrealized Gain/Loss Account

--- 第101页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 101 of 162 3.2.3.33.3 Futures Take Delivery

Table 3.28 - Futures Take Delivery As-Is To-Be Proposed

Transaction Dr/Cr GL Account GL Description Amount Transaction Dr/Cr GL Account GL Description Amount SAP Comments

Realized Future Gains Dr XXXX Broker

Realized Future Gains Dr Clearing Account

Standard - As-Is Accounting Schema is broken down to 2 accounting entries: Realized Gain/Loss Postings and Incoming/Outgoing Payment

SAP does not post to Broker Account, instead Balance Sheet Account

Cr XXXX Recoverables

Cr Recoverables

Incoming Payment Dr Bank/ Margin Account

Cr Clearing Account

Direct FI Posting Dr XXXX Recoverables Direct FI Posting Dr Recoverables

Standard - FI

Cr XXXX GAITL

Cr GAITL

Goods loaded (LDC event) Dr
AR Goods loaded (LDC event) Dr
COGS

Standard - Goods Movement - Unrestricted to Restricted/ Reserved Stock

Cr
Recoverables

Cr
Inventory

Direct FI Posting Dr
Recoverables

Cr
GAITL

Billing Dr Account Receivables Standard

Cr P&L Clearing

Direct FI Posting (Manual) Dr
P&L Clearing Standard Manually Post

Cr
GAITL

--- 第102页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 102 of 162 3.2.3.33.4 Tender and Retender with Exchange This will be further discussed on detailed design phase.

3.2.3.33.5 Options Conversion to Futures
Closing of Options will happen in Broker statement, new futures will be created in Broker statement. (Will capture trade same as future closed position).

If the GAI take delivery on the futures, refer to Futures Take Delivery entries.

--- 第103页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 103 of 162 4 Country Specific Scenario 4.1 Virtual Crush 4.1.1 Highlight Key Business Requirements Req. No Business Requirement Requirement Analysis (Fit/Gap) Solution ACM-323 Ability to configure processing models for virtual crush operations, including: - Ability to capture and model physical refining process for CPO - Ability to model the refining of CPKO into RBDPKO and PKFAD - Ability to model the refining of RBDPKO into RBDPKOL and RBDPKST - Ability to capture and model physical fractionation process of RBDPO - Support virtual crush functionality exclusively for soybeans - Consistent approach to yield calculations - Standardized cost allocation methodologies - Support full production runs for entire shipments Gap Production process is currently handled outside of ACM. Further discussions needed if ACM Production services and Tolling process are to be used. SS[Dec19]: Updated the relevant RICEFW IDs ACM-324 Ability to process raw materials through defined crush models, including: - Capture fixed price PK transactions - View the refined products equivalent (CPKO and PKE) - Consume CPO from storage daily at cost - Produce default yield with transfer price formula to RBDPO and PFAD - Ability to capture actual consumption (quantity) of soybeans (SB) - Track production (yield ratio and quantity) of soybean oil (SBO) and soybean meal (SBM) - Capture month-end processing data Gap Production process is currently handled outside of ACM. Further discussions needed if ACM Production services and Tolling process are to be used. SS[Dec19]: Updated the relevant RICEFW IDs ACM-328 Ability to manage yield calculations throughout the virtual crush process, including: - Support predefined default yield and transfer price formula - Support predefined default yield calculations - Calculate yields for crushed by- Gap KDD Virtual Crush : Virtual Crush estimated yield and valuation of the same is handled using CPE Statitical conditions. Exact definition of this percentage calculations needs to be defined per Commodity/material

--- 第104页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 104 of 162 Req. No Business Requirement Requirement Analysis (Fit/Gap) Solution products - Adjust yields to sync paper and physical inventory - Track by-products through predefined default yields ACM-329 Ability to allocate processing costs across product streams, including: - Allocate cost of CPKO to RBDPKO and PKFAD on weighted average basis - Allocate cost of RBDPKO to RBDPKOL and RBDPKST on weighted average basis - Apply estimated cost of crushing for by-product pricing - Standardized cost allocation methodologies Gap Production process is currently handled outside of ACM. Further discussions needed if ACM Production services and Tolling process are to be used. SS[Dec19]: Updated the relevant RICEFW IDs ACM-330 Ability to manage inventory positions and contract relationships in virtual crush operations, including: - Ability to capture change in inventory level and value due to virtual and actual crushing - Enable position management based on soybean meal and soybean oil rather than raw beans - Consistent integration with position management - Track/match batch of virtual crush with associated trade contract - Unified management of contract- to-crush relationships Gap KDD Virtual Crush : Virtual Crush estimated yield and valuation of the same is handled using CPE Statitical conditions. Comparitive reporting between Virtual and actual crush quantities and values will be a net new report. ACM-338 Ability to value virtual crush operations: - Perform MTM valuation on virtual crush by-products - Ensure synchronized trading P&L reporting - Reconcile virtual crush valuation with SAP's standard statutory inventory valuation Gap KDD Virtual Crush : Virtual Crush estimated yield and valuation of the same is handled using CPE Statitical conditions. Comparitive reporting between Virtual and actual crush quantities and values; P&L accordingly will be a net new report. ACM-465 Ability to reconcile Virtual Crush valuation results with SAP's standard statutory inventory valuation Gap KDD Virtual Crush : Net New report to show the details of Virtual Crush quantities, values and P&L ACM-616 Ability to use ACM CPE pricing conditions as virtual crush reference for Singapore operations Fit For SG virtual reference will be the pricing conditions we are maintaining ACM CPE. BOM is for ID to have estimated yield %'s

--- 第105页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 105 of 162 4.1.2 Business Process Flow This section provides the process flow diagram at BPH L4 with the detail information for each of the process steps.

4.1.2.1 Maintain Virtual Crush Report

Figure 4.1 – Maintain Virtual Crush Report

Table 4.1 – Maintain Virtual Crush Report Process Steps Role Transaction
Code/Fiori App ID Description Create and Approve 3rd Party Purchase Contract Trader (ACM) WB21/WB22/ Fiori Application: Maintain ACM Trade Contract Consolidated Position Report - New Unpriced Contract Price 3rd Party Purchase Contract Trader (ACM) WB22/ Fiori Application: Maintain ACM Pricing Consolidated Report Position - Contract Priced

Add Condition Records to Crush Scenario Trader (ACM) WB21/WB22/ Fiori Application: Maintain ACM Trade Contract Virtual Crush Report – Calculation of Estimated Crush Values for Contracted Qty Create Nomination
Scheduler (ACM) O4NM/ Fiori Tile: Maintain Nomination

Maintain Load Data Capture Logistic & Operation (ACM) /ACCGO/LDC_WC Fiori: Maintain Load Data Capture Consolidated Position Report - Changes in Inventory after LDC Virtual Crush Report – Calculation of Estimated Crush Values for Delivered Qty (Available to Crush) Crushing/ Refining Activities Production - Consolidated Position Report – Inventory Stock Reduced

--- 第106页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 106 of 162 Process Steps Role Transaction
Code/Fiori App ID Description Virtual Crush Report – Calculation of Actual Crush Values for Crushed Qty
(Available to Crush reduced) Create, Release, and Approve Settlement Back Office (ACM) /ACCGO/STL_WC Fiori Tiles: Settlement Work Center /ACCGO/STL_APQ — Fiori: Settlement Approval Queue

--- 第107页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 107 of 162 4.1.3 Solutioning 4.1.3.1 Virtual Crush Requirement Summary Soybeans Physical Report should capture the unrealized and realized portions of P&L for soybeans book to have “one book view” for soybeans physical transactions including – Purchase of Soybeans, crushing and refining and sale of SBM, CSBO and RSBO.

Figure 4.2 - Virtual Crush Summary Trade Control performs daily mark-to-market on CSBO and calculates unrealized P&L. However, since RSBO is the refined product derived from CSBO, there's a difference between CSBO and RSBO valuations. Rather than matching the numerous RSBO selling contracts and their corresponding market prices daily, Trade Control uses CSBO as the basis for daily MTM calculations, understanding that this creates a temporary variance. At month-end, the China team provides production costs to Trade Control, which nets off against the daily unrealized P&L calculations to arrive at realized P&L for the soybean.

At month-end Production Cost is provided by CN team to SG Trade Control where SG Trade Control inputs this as a one–time adjustment for overall P&L calculation.

--- 第108页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 108 of 162 4.1.3.2 Timeline of Updates 0. Statistical Conditions are defined and configured into the Commodity Pricing Engine(CPE) to record the: Estimated yield percentage and Estimated Production cost

ACM Purchase Contract is Created for the Raw material (SB or CSBO) and Priced. The Statistical conditions on the contract will then calculate and hold the value of the resulting crushed products, and also the estimated Cost of crushing and refining.
Soybean Physicals Report will update the set of columns meant to show ‘ ’ numbers for quantities and value of the resulting crushed products for the Open Contract Qty. The report will calculate and show the MtM for these estimated values. (Pre-requisite: Market values maintained for SBM and CSBO)
China executes the ACM Purchase Contract and records quality parameters for SB using Load Data Capture Load and Unload events. (LDCs of each Vessel is assigned 1 Batch Number)
Soybean Physicals Report will update the set of columns meant to show ‘ ’ numbers for quantities and value of the resulting crushed/refined products for the Available to crush Qty. The report will calculate and show the MtM for these estimated values. (Pre-requisite: Market values maintained for SBM and CSBO)
Production Order(s) to consume SB and produce SBM and CSBO. Batch number of the SB is recorded on the GI of SB and fresh batch numbers are created and recorded on the GR of SBM and CSBO.
Soybean Physicals Report will update the set of columns meant to show ‘ ’ numbers for quantities and value of the resulting crushed/refined products based on the Production Order updates. The report will calculate and show the MtM for these actual values. (Pre-requisite: Market values maintained for SBM and CSBO).
China executes the ACM Sale Contract for SBM and RSBO at prices negotiated with the Customers and records quality parameters for SBM and RSBO respectively using Load Data Capture Load and Unload events. LDCs shall record the Batch numbers of the SBM and RSBO sold.
Soybean Physicals Report will update the set of columns meant to show ‘ ’ numbers for quantities and value of the resulting crushed/refined products. The report will calculate and show the MtM for these estimated values. (Pre-requisite: Market values maintained for SBM and CSBO)

--- 第109页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 109 of 162 4.1.3.3 Virtual Crush Report Requirement: In SG and Indonesia, GAR typically procures raw materials and Crushes/ Refines to sell the Semi-Finished and Finished materials. Soybeans are always bought to crush/refine. Crude-Soybean Oil can be bought to sell as-is or refine and sell Refined-Soybean Oil. Palm Kernel can be sold directly or crushed to PKO/PKE and then sold. There is a need for a report to show the Position, and Estimated Crush P&L and Actual Crush P&L and the final Sale P&L in one report.

Solution Proposal: Inventory and Unrealized P&L report shows the Purchase Contracts (Vessel Contracts) and its Open Quantities. It also updates the Inventory based on the LDC-Good s receipts. With these numbers together with the Estimated Crush Cost % and Yield % maintained at the Contract, the report shows the Estimated Crush P&L values. The Production Process updates the Actual Crushed Quantities and also the relevant P&L. Finally, when the LDC – Goods Issue is posted the Sale Quantities and the final Unrealized P&L. Details of this would be updated in RICEFW- SG-072 and RICEFW-SG-073. Table 4.2 - Virtual Crush Sample Report

Material Purchase Contract Reference
Vessel Name Contract Open
Qty (BU) Available to Crush / Refine Quantity (kMT) Inventory Value (USD) Estimated Cost of Crushing (USD/MT) Cost of Refining (USD/MT) Est. Yield % Est. Yield Qty (BU) Est. Crush Value (USD) Est. Crush Market Value (USD) Est. Crush P&L Actual Crushed Qty Actual Production Cost
Actual Yield % Actual Crush Qty of By products
Actual Crush Value
Actual Crush Market Value Actual Crush P&L STO Qty Price Applicable for STO Qty Sold Qty Sold Qty Value Final Unrealized P&L Palm Kernel

PK Oil

PK Expeller

Residual

Soybean 550226 MVS XX NOV25 2030 970 3800 1.5

2000 1,45

SBM

78 756,60 567,45 643,11 75,66

75 1500 1125 1275 150

CSBO

18 174,60 261,90 349,20 87,30

20 400 580 800 220

RSBO

99 172,85 691,42 691,42 0,00

97 388 970 1552 582

--- 第110页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 110 of 162 4.1.3.3.1 Key Features Contract Open Quantity: Open Quantity, which is yet to be delivered. Available to Crush /Refine Qty: Quantity that has been delivered = Inventory Inventory Value: Contract price X Delivered Quantity Estimated Cost of Crushing: Statistical Condition whose value is entered by the Trader at the time of Contract Creation Estimated Yield % and Quantity: Yield % is Statistical Condition whose value is entered by the Trader at the time of Contract Creation. Estimated Crush Quantities are calculated as corresponding percentages of the (Contract Open Quantity + Delivered quantity).
Estimated P&L: The Contract vs Market price P&L is calculated based on these numbers For Crude Soybean Oil (CSBO) on Day1 when the Contract is created and priced the market price of CSBO is copied over to calculate Crush Value. Therefore, on Day1 the Estimated PnL would be zero. From Day 2 onwards the difference between the Day1 value and the changing Market Value is going to show up in the PnL.
For Soybean Meal, the same percentage of the Purchase price + the Estimated production cost is used to calculate the Estimated Crush Value. The market value is used to calculate the PnL.

Actual Crushed Quantity: Updated based on the Goods Issue on Production Order Actual Production Cost: Updated based on the Costs recorded during Production Order execution
Actual Yield % and Quantity: Updated based on the Goods Receipts on Production Order and Yield % is calculated. Actual Crush P&L: The Actual Crush Value vs Market value for these quantities is calculated for Actual PnL.
The Actual Crush Value needs to take into consideration the cost of raw materials and the cost of production (which is recorded in the Production Order) and NOT the Standard Cost from Material master alone.

STO Quantity: If there are any STOs posted for the Semi- and Finished materials they are updated here

--- 第111页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 111 of 162 Sold Quantity: The LDC-Goods Issue for the sale contracts is updated here
Sold Quantity Value: Sale contracts price for the respective quantities is used to calculate the overall Value of the Sold Quantity Unrealized P&L: Final Unrealized P&L is calculated using the Actual Crush Value and Sales/STO value

Details of this are updated in RICEFW-SG-072 and RICEFW-SG-073

--- 第112页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 112 of 162 4.1.3.4 Custom Development 1. [CONFIG] Statistical Conditions to be configured to record the Estimated Crush Yield % for By products and also for the Estimated Production cost. 2. [REPORT] This report is a custom report. A snapshot is shown in the previous slide. Below is an explanation for each column:

4.1.3.5 Statistical Conditions for Virtual Crush The percentage indicating the Estimated Cost for Crushing and the estimated yield are recorded on Statistical conditions on the contract. These condition values are used in the Inventory and Unrealized P&L report to calculate the Estimated crush quantities and further in the estimated P&L calculations.

--- 第113页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 113 of 162 5 Appendix 5.1 Requirement List Please refer to the link below for the complete list of requirements, including those related to SAP ACM that have been cancelled or reassigned to other modules. For ease of navigation, requirements can be filtered by Process Level 2 (e.g., Trade Capture, Delivery Planning & Execution, Settlement & Invoicing, Trade Control, and Backstop Process) to identify the relevant items.

GAR_Requirement Traceability Matrix_CTRM_v1.1 (Cleaned)

Process L1: Commodity Trading & Risk Management Process L2: Trade Control

Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 009 4.1 Commodity Risk Reporting Close and Settle price sim definition for P&L Ability for traders to see close price and for Trade Control and EOD valuation to use settle price High Medium Fit Maintain in market reference table - data input from business users ACM- 010 4.1 Commodity Risk Reporting Close and Settle price sim definition for MTM Valuation Ability for traders to see close price and for Trade Control and EOD valuation to use settle price High Medium Fit Maintain in market reference table - data input from business users ACM- 011 4.3 Derivatives Risk Management Reconcile Broker Statement Ability to reconcile with Broker Statement received on Position and P&L price and quantity, margin will be provided by the broker and will not be reconciled High Medium Gap ACM Expense functionality / Broker Recon Solution
ACM- 012 4.2 FX Risk Management Interface Management The system should support upload of FX trades via file upload (e.g. CSV), allowing users to create or update FX transactions in bulk with appropriate validation and error handling.
High Medium Gap Commodity trades can be integrated with brokers using SAP RPA or custom upload program.

--- 第114页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 114 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions

This requirement was split with ACM-957

Might be custom upload Program / ABAP Dev
ACM- 028 4.1 Commodity Risk Reporting EOD Snapshot Timing (for MTM valuation) Ability to schedule EOD process to run automatically; Ability if it has to be re-run, to only re-run for a specific portfolio or business unit GAR’s cut-off time is D+1 at 11 am to allow Trade Support to complete prior day's trade capture, as traders do not input details on the trade date itself (e.g., trades on 24th October are finalized by 11 am on 25th October) High Medium Fit Risk Reporting ACM- 033 4.1 Commodity Risk Reporting Flexible Cut-Off Times / Scheduling for period end processing Ability to have Cut-Off Times / Scheduling flexibility to configure EOD snapshots with set points in time per region High Medium Fit Risk Reporting configuration - Part of open KDD (functionality by default present) ACM- 034 4.1 Commodity Risk Reporting Flexible Cut-Off Times / Scheduling for period end processing Ability to customize Cut-Off Times / Scheduling based on operational needs to ensure MTM processing alignment with regional schedules High Medium Fit Risk Reporting configuration - Part of open KDD (functionality by default present) ACM- 036 4.1 Commodity Risk Reporting Data Correction for Risk Management Ability to apply targeted data corrections directly to risk-relevant data without a full data re-run High High Fit Cannot update in the system, reports can be downloaded offline in Excel format ACM- 055 4.1 Commodity Risk Reporting Daily Maintenance Ability to define security access where risk price curves are defined and maintained by Risk team. High Medium Gap Security Roles and Authorization (baseline configuration) ACM- 062 4.1 Commodity Risk Reporting Exposure Management Implement comprehensive exposure management capabilities: High Medium Gap Custom Reporting (Copy Standard CDS view then

--- 第115页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 115 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions - Exposure Views: - Ability to build custom views on positions and exposures - Drill-down functionality to trade-by-trade attributes - Exposure analysis across multiple dimensions - Margin Management: - System to perform full recalculation of initial/variation margin - Review of actual margin requirements - Margin projection capabilities - Exposure Analysis: - Ability to analyze exposures by various criteria - Identification of risk concentrations - Support for risk mitigation planning build/configure new columns) ACM- 066 4.2 FX Risk Management FX Curve Management Ability to manage currency exchange rate curves: - Value FX trades using forward points - Support discounting basis valuation - Load FX trader's price data - Simulate P&L based on loaded prices High High Fit Forward price curves is through price upload at ACM. FX rate is through TRM.

VM: Addressed by Market Data Management ACM- 067 4.1 Commodity Risk Reporting MTM Valuation Engine Ability to perform MTM valuations across products: - Link market indices to trading locations for valuation - Support automatic MTM computation - Process adjustments for precise period-end reconciliation - Enable real-time and scheduled High Medium Fit Check the Reconciliation part with TRM.

VM: SAP TRM - Transaction Manager

--- 第116页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 116 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions batch valuations - Automatically recalculate MTM when inputs change ACM- 069 4.1 Commodity Risk Reporting Price Data Quality Maintenance Ability to ensure data quality and accuracy: - Update and correct market data - Implement data validation rules - Establish approval workflows for price changes - Configure automated alerts for data anomalies - Maintain audit trails for all price modifications High Medium Gap Combination of SAP Market Rates Management and custom developments ACM- 071 4.2 FX Risk Management OTC Swaps Management Ability to capture and model OTC traded Swaps transactions: - Pay and/or Receive Fix Receive Float High Medium Fit SAP TRM - Transaction Manager ACM- 072 4.2 FX Risk Management Financial and Derivative Trade Capture Ability to capture and manage financial and derivative transactions, including: - Supporting various FX instruments and currency pairs - Managing option trades with date modification capabilities - Configuring valuation parameters for derivatives - Creating custom financial instruments - Implementing position netting functionality High Medium Fit SAP TRM - Transaction Manager ACM- 080 4.3 Derivatives Risk Management Futures Processing Ability to post futures-related entries:

Automatically post realized and High High Gap Custom Report

--- 第117页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 117 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions unrealized futures monthly - Create separate journal entries for gains and losses ACM- 081 4.1 Commodity Risk Reporting MTM Posting Ability to post MTM valuation entries:

Mark fee components for MTM valuation
Support MTM valuation of positions
Generate appropriate GL entries for MTM changes High Medium Fit Standard Solution Behavior ACM- 108 4.2 FX Risk Management Bank Deposit Management Ability to manage deposits: Place, withdraw, and roll over fixed deposits for GAI and GAIMT High Medium Gap

ACM- 155 4.3 Derivatives Risk Management Data Import and UOM Ability to create framework for data import within system: - Upload or import transactions using Excel format (CSV) - Support additional Units of Measure for futures and options contracts - Import futures in CSV format issued by all brokers - Support identical format regardless of broker - Include all brokerage charges High High Gap Combination of SAP RPA and custom development for import of trades ACM- 178 4.3 Derivatives Risk Management Broker Integration Ability to integrate with brokers: - Integrate with external broker BRCD / standard S4 - Support customer-facing sales activities - Enable contract management through broker High High Gap SAP std API are available

--- 第118页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 118 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 203 4.3 Derivatives Risk Management Futures Allocation The ability to capture broker information for futures trades within SAP ACM and apply the appropriate brokerage charges to transactions.

This was split with ACM-963 High High Fit Expense Management ACM- 205 4.1 Commodity Risk Reporting Position Closeout Ability to enable tools for closing positions: - Manually select and close futures and options positions - Automatically close futures positions on FIFO basis - Break links between matched futures/options selectively High Medium Fit Rev Rec closes the position.

VM: SAP TRM - Transaction Manager ACM- 206 4.3 Derivatives Risk Management Futures Exercise Ability to exercise futures contracts: - Manually exercise futures contracts into physical delivery - Support physical settlement using closing price of exercise date - Support physical settlement using purchase price High High Fit Manually close Futures Conract and open Physical Contracts
ACM- 207 4.3 Derivatives Risk Management Exchange- Specific Settlement Ability to handle exchange-specific settlements: - Realize futures PnL upon expiry date at closing price

This is related to ACM-943, ACM- 944, ACM-945 High Medium Gap Manually close Futures Conract and open Physical Contracts
ACM- 289 4.1 Commodity Risk Reporting P&L Segregation Ability to segregate P&L (CIF to FOB Price for MTM) - Segregate P&L from selling goods and covering additional costs High Medium Fit Maintain FOB price = Futures and CIF part as Primary Basis. Negotiated price variance and Secondary Basis

--- 第119页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 119 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions - Reconcile P&L during invoice finalization ACM- 295 4.1 Commodity Risk Reporting Multiple End-of- Day (EOD) Snapshot Configuration Ability to configure multiple End-of- Day cutoff time snapshots and set time exceptions for specific dates as required High High Fit ACRA allows for different snaphot timings for different commodity as a standard configuration. Refer to Remarks. ACM- 296 4.1 Commodity Risk Reporting Holiday Price Snapshot Configuration Ability to configure baseline snapshot settings that account for public holidays by automatically using the last available price, with the system referencing previous trading day prices when current date prices are unavailable High High Fit Proposed solution on remarks and need to be check again during build phase ACM- 299 4.1 Commodity Risk Reporting SAP Interface Reconciliation Ability to see a reconcilliation report by contract, realised\unrealised from EOD, explained by account postings across the top. High High Gap SS: Use of Standard Risk Reports for Unrealized reporting

New custm report for Realized P&L reporting ACM- 300 4.1 Commodity Risk Reporting Trading Limits (Exposure RMB) Ability to monitor priced, but not delivered exposure, computed from MtM (FOB down) less sum of Deposits on Counterparty level (for open SO only). -> Applicable for Margin Management High High Gap VM: To be addressed by FSCM - Credit Management ACM- 316 4.1 Commodity Risk Reporting Real-time Position Reporting Ability to deliver immediate position visibility: - Ability to generate real-time Physical Position Report per commodity group - Provide real-time Mark-to-Market values High Medium Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement

--- 第120页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 120 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions - Deliver real-time P&L information - Compile total monthly closed positions by products - Finalize trade position closed summaries ACM- 318 4.1 Commodity Risk Reporting Position Segregation and Classification Ability to categorize and segregate positions: - Segregate positions by Open PO: * Unscheduled POs * Planned/Nominated POs - Track Inventory (actual inventory) - Monitor SOs (Sales Orders) - Generate Position Reports (Global Position) for Export and Local sales - Produce Stock Position Reports for Open Sales & Outstanding Contracts High Medium Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement ACM- 319 4.1 Commodity Risk Reporting Position View Configuration Ability to view positions across multiple dimensions: - Manage physical trade positions with detailed breakdowns * View by product * View by instrument * View by location * Filter positions based on Planned vs. Actual status * Provide flexibility in position reporting views High Medium Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement ACM- 323 4.4 Virtual Crush Report Virtual Crush Model Configuration Ability to configure processing models for virtual crush operations, including: - Ability to capture and model physical refining process for CPO - Ability to model the refining of CPKO into RBDPKO and PKFAD - Ability to model the refining of High High Gap SS: Production planning outside of ACM

--- 第121页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 121 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions RBDPKO into RBDPKOL and RBDPKST - Ability to capture and model physical fractionation process of RBDPO - Support virtual crush functionality exclusively for soybeans - Consistent approach to yield calculations - Standardized cost allocation methodologies - Support full production runs for entire shipments ACM- 324 4.4 Virtual Crush Report Raw Material Processing Models Ability to process raw materials through defined crush models, including: - Capture fixed price PK transactions - View the refined products equivalent (CPKO and PKE) - Consume CPO from storage daily at cost - Produce default yield with transfer price formula to RBDPO and PFAD - Ability to capture actual consumption (quantity) of soybeans (SB) - Track production (yield ratio and quantity) of soybean oil (SBO) and soybean meal (SBM) - Capture month-end processing data High High Gap SS: Production planning outside of ACM

--- 第122页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 122 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 327 4.4 Virtual Crush Report Refined Product Processing Models Ability to process refined products through secondary refining models, including: - Ability to model the refining of CPKO into RBDPKO and PKFAD - Ability to model the refining of RBDPKO into RBDPKOL and RBDPKST - Model refining of crude degummed soybean oil (CDSBO) into refined soybean oil (RSBO) - Track by-products through predefined default yields High High Gap SS: Production planning outside of ACM ACM- 328 4.4 Virtual Crush Report Yield Calculation and Management Ability to manage yield calculations throughout the virtual crush process, including: - Support predefined default yield and transfer price formula - Support predefined default yield calculations - Calculate yields for crushed by- products - Adjust yields to sync paper and physical inventory - Track by-products through predefined default yields High High Gap SS: CPE Configuration and Virtual crush report ACM- 329 4.4 Virtual Crush Report Processing Cost Allocation Ability to allocate processing costs across product streams, including: - Allocate cost of CPKO to RBDPKO and PKFAD on weighted average basis - Allocate cost of RBDPKO to RBDPKOL and RBDPKST on weighted average basis High High Gap SS: Production planning outside of ACM

--- 第123页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 123 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions - Apply estimated cost of crushing for by-product pricing - Standardized cost allocation methodologies ACM- 330 4.4 Virtual Crush Report Virtual Crush Position Management Ability to manage inventory positions and contract relationships in virtual crush operations, including: - Ability to capture change in inventory level and value due to virtual and actual crushing - Enable position management based on soybean meal and soybean oil rather than raw beans - Consistent integration with position management - Track/match batch of virtual crush with associated trade contract - Unified management of contract- to-crush relationships High High Gap SS: CPE Configuration and Virtual crush report. Same Gap as Line335 ACM- 331 4.1 Commodity Risk Reporting Inventory Price Adjustments Ability to manage managing inventory-related price adjustments: - Adjust sales according to market conditions - Apply adjustments to storage tank inventory - Track price adjustments against inventory positions High High Gap SS: Custom logic for daily Material MAP and Inventory valuation ACM- 353 4.1 Commodity Risk Reporting Data Preparation Ability to prepare month-end data: - Support 3-day process without live system disruption - Generate reconciliation reports by contract - Show realized/unrealized from High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement

--- 第124页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 124 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions EOD - Explain by account postings across the top ACM- 354 4.1 Commodity Risk Reporting Month-End Processing Ability to reconcile trade data: - Process month-end reconciliation of realized trade data - Process month-end reconciliation of unrealized trade data - Perform month-end closing High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement ACM- 357 4.1 Commodity Risk Reporting Intercompany Reconciliation Ability to reconcile intercompany transactions: - Reconcile intercompany transactions with GAI - Conduct month-end reconciliation with GAI - Process intercompany transactions and confirmations High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement ACM- 358 4.1 Commodity Risk Reporting Closing Completeness Ability to verify month-end closing completeness High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement ACM- 359 4.1 Commodity Risk Reporting Year-End Closing Ability to perform year-end closing: - Execute year-end closing - Prepare accruals for sales and purchases (year-end) High Medium Fit SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement ACM- 360 4.1 Commodity Risk Reporting P&L Preparation Ability to prepare P&L: - Prepare unit and consolidated P&L files - Implement system-driven High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect

--- 第125页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 125 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions validation for discrepancies - Detect incomplete data automatically - Reduce manual verification and delays - Prepare consolidated management P&L using automated processes this information. This is a reporting requirement ACM- 362 4.1 Commodity Risk Reporting Profit & Loss (P&L) Reporting Ability to generate P&L reporting - Palm PnL (grouped by Strategy/deal idxgroup, showing MT position, PnL metrics - Prior, Today, MTD, YTD) [Singapore] - Bean PnL (standardized with Palm PnL format plus Instrument Type) [Singapore] - Lauric PnL (standardized with Palm PnL format) [Singapore] - Futures CXC (standardized with Palm PnL format) [Singapore] - Palm A1 Summary (Palm PnL filtering out physical trades, with delta-adjusted option quantity) [Singapore] - Bio Summary (standardized with Palm A1 Summary) [Singapore] - Position & Daily P&L analysis for futures contract conversion decisions [China] - Deal Slip reporting by Strategy [China] - Profitability Report (P&L) realized and unrealized [Indonesia] - Monthly P&L reporting with High Medium Fit SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement

--- 第126页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 126 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions Accrual vs Actual (cost and revenue by contract) [Sugar Trading] ACM- 363 4.1 Commodity Risk Reporting Consolidated and Margin Reporting Ability to generate Consolidated and Margin Reporting - Consolidated by Product (grouped by internal entity and market index) [Singapore] - Consolidated by Strategy (for Unrealized PnL) [Singapore] - Proprietory Trading Report [Singapore] - Gross Margin Exposure PnL [Singapore] - Marketing Margin Report [Singapore] - Non-Freight PnL by Destination [Singapore] - Month-over-Month NFB YTD [Singapore] - Margin Purchase Report [Indonesia] - Margin Sales Report [Indonesia] - Show PnL Reports based on different pricing (Local Market Prices or Reuters or etc) [Indonesia] High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is a reporting requirement ACM- 364 4.1 Commodity Risk Reporting Position Reporting Ability to generate Position Reporting: - Position Limits Reports (versions 1 and 2) [Singapore] - Cooking Oil Daily Position Report (summary and detailed) [China] - Position by location (Ningbo and Tianjing) with status (priced/unpriced, location, intransit) High Medium Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is many many reporting requirement rolled into one :)

--- 第127页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 127 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions [China] - DCE Daily Position and MTM PnL [China] - Daily MTM and Position Reporting (physical and futures sugar contracts) [Sugar Trading] - Daily MTM Report [India] - Daily Stock Reporting [India] - Monthly Stock Statement Reporting [India] - Monthly Position Reporting (for Singapore consolidation) [USA] - MTM Valuation (end-to-end mark- to-market valuation) [Europe] ACM- 365 4.1 Commodity Risk Reporting Risk and Exposure Reporting Ability to generate Risk and Exposure Reporting: - Backdated Trade Data Analysis [Singapore] - Weekly MTM Reports for GAI and destination offices [Singapore] - Forex Hedge Report (MTD, YTD, Unrealized and Realized MtM for FX and NDF) [Singapore] - Macro Report (Prop Trading) [Singapore] - Macro Trading By Product [Singapore] - Hedging Strategy Tracking Report (sugar futures and FX hedge coverage) [Sugar Trading] - Monthly Mark-to-Market Valuation (paper positions and physical inventory) [Oleo Product] High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is many many reporting requirement rolled into one :)

--- 第128页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 128 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 376 4.3 Derivatives Risk Management Trade Conversion Reporting Ability to track futures conversions: - Display list of physical transactions exercised from futures [Singapore, China] - Track conversion of futures to physical delivery [Singapore, China] High High Gap Custom reporting between ACM (physical) and Commodity Derivatives transactions
ACM- 378 4.2 FX Risk Management Market Data Integration Ability to pull market index data (mid/closing prices) based on trade date for new fields like FX Rate High Medium Fit FDCS17 and FSCS17B
ACM- 414 4.1 Commodity Risk Reporting Specialized Business Reports Ability to show for realized & unrealized P&L data which also has its applicable cert/uncert, by plant, by trader, by portfolio

Original Requirement: Ability to generate Specialized Business Reports: - Issue report with similar structure to Proprietary Trading Report [Singapore] - Include plantation-specific metrics and analysis [Singapore] High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is many many reporting requirement rolled into one :) ACM- 423 4.1 Commodity Risk Reporting S-Series Reports Ability to generate S-Series Reports: - Generate S2 report with required information [Singapore] - Generate S3 report with required information [Singapore] - Generate S5 report with required information [Singapore]

26/12 WA: S series report is a consolidated pnl report derived from a specific group of Beans portfolios High High Gap Reports will be detailed on Phase 2

--- 第129页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 129 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions (in recent ACM discussion Portfolio = Profile Info). For example, S1 can be comprised of consolidated PnL of combined portfolios A,B, and C. ACM- 430 4.3 Derivatives Risk Management Manual Financial Trade Closeout Ability to close out Futures and Options buy and sell positions by manually selecting positions. High Medium Fit Standard feature in Commodity Risk Management ACM- 435 4.1 Commodity Risk Reporting Simulations Run an EOM valuation, there could be a re-run at the end of the same day, after it is done - manual adjustment will be done to true up/down High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is reporting requirement ACM- 437 4.1 Commodity Risk Reporting PnL Attribution (PnL Explained) Ability to report and provide specific category of change explanation on the changes to PnL. Specifically: 1. Risk attributes movement • Delta • Vega • Theta • Gamma 2. New Deals 3. Deals amendment • Qty • Price • BL • All cost amendment • Port changes • Cancellation • Deal transfer 4. Actualization • All Costs actualization • Qty Actualization • Yield adjustments High High Gap SS: Standard SAP Risk reports like Position report, MtM report, Daily Grain report can be used to reflect this information. This is many many reporting requirement rolled into one :)

--- 第130页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 130 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions • Futures to physical delivery 5. Curve / MTM price amendment 6. Swap Pricing ACM- 439 4.1 Commodity Risk Reporting Realized Ability to compute Realize PnL for all types of trade. - Swap after last price date - Futures after matched - Physical priced and moved - FX at settlement date - Option exercised / matched High High Gap Custom Report ACM- 446 4.1 Commodity Risk Reporting Exposure Management Ability to build Views on the positions. Exposures and be able to drill down to trade by trade attributes High Medium Fit MtM and Positions Report ACM- 453 4.1 Commodity Risk Reporting Trader Daily Position Trader Daily Position Report is grouped by trade type where the positions are reported into the respective calendar months. High Medium Gap Standard Positions, MtM and Daily Grain Report
ACM- 455 4.1 Commodity Risk Reporting Backdated Trade Data for Analysis and Evaluation Ability to view backdated realized and unrealized trade data at specific points for evaluation and analysis, e.g., comparing open trade positions between today and the same date last year through the data tables stored in the S/4 environment High High Gap Refer KDD solution for this topic Realized P&L ACM- 458 4.3 Derivatives Risk Management EFP Contract Size Management Ability to manage the exercise of futures contracts for physical delivery, especially from the contract size point of view for the following scenario, e.g., BMD's standard contract size is 500 MT per contract, whereas contracts High Medium Gap Exercise of Commodity Futures is separate manual activity. Creation of physical contracts is separate manual activity.

--- 第131页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 131 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions from China typically have smaller lot sizes ACM- 459 4.3 Derivatives Risk Management Multiple EFP execution Ability to exercise multiple lots, e.g., BMD, and take deliveries simultaneously, then prepared the product for deliveries High Medium Gap Exercise of Commodity Futures is separate manual activity. Creation of physical contracts is separate manual activity. ACM- 460 4.3 Derivatives Risk Management Expiration Date Flexibility Ability to modify expiration dates of short-dated options High Medium Fit When changing expiration date of options from old to new, the existing contacts with old expiry dates will need to be closed out. New contracts with new expiry dates will need to be opened. ACM- 461 4.1 Commodity Risk Reporting Different Trade Matching Considerations Ability to reconcile trade-matching differences between trade control and statutory accounting processes High High Gap Refer to Inventory Val. KDD solution ACM- 462 4.1 Commodity Risk Reporting MTM Valuation with Daily Snapshot Cut-off Ability to perform MTM valuation using computed settlement prices with a daily snapshot valuation cut- off time at 3 PM High Medium Fit Standard Positions, MtM and Daily Grain Report
ACM- 463 4.3 Derivatives Risk Management Option Date Management Ability to manage short- and normal-dated options High Medium Fit Standard feature in Commodity Risk Management ACM- 464 4.2 FX Risk Management Local Curves Creation and Management Ability to define and create custom instruments such as Non- Deliverable Forwards (NDFs) High Medium Fit Standard feature in Commodity Risk Management ACM- 465 4.4 Virtual Crush Report Reconciliation with Statutory Inventory Valuation Ability to reconcile Virtual Crush valuation results with SAP's standard statutory inventory valuation High High Gap SS: KDD Virtual Crush : Net New report to show the details of Virtual Crush quantities, values and P&L

--- 第132页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 132 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 468 4.3 Derivatives Risk Management Trade Capture / Record Ability to process Future Trade captures including validation and confirmation steps High Medium Fit Standard feature in Commodity Risk Management ACM- 469 4.2 FX Risk Management Trade Capture / Record Ability to handle OTC/Swap Trade creation, validation, and confirmation processes High Medium Fit Standard feature in Commodity Risk Management ACM- 471 4.1 Commodity Risk Reporting Month end closing- compiling the total monthly CPKO closed position. Ability to compile total monthly CPKO closed positions, finalize and distribute trade position closed summaries to respective functional departments High Medium Fit Standard Positions, MtM and Daily Grain Report
ACM- 472 4.1 Commodity Risk Reporting Position & Daily P&L Ability to analyze total position and daily P&L to determine when futures contracts should be converted to physical trades based on product profitability High Medium Gap Custom development for transactions in ACM (Physical) and Commodity Futures, along with market data ACM- 501 4.2 FX Risk Management Cross-Currency Premium Input Ability to support multiple currency combinations for premium and futures pricing High Medium Fit SAP TRM - Transaction Manager ACM- 563 4.1 Commodity Risk Reporting PKPG Report Generation Ability to generate PKPG reports on per-transaction basis and support accounting posting from GAI to GAITL High High Gap Information available - Custom report needed
ACM- 564 4.2 FX Risk Management Trade Exception Monitoring Ability to monitor foreign exchange trades executed outside of SAP system High No Change Fit Standard Solution Behavior ACM- 566 4.2 FX Risk Management Platform Trade Download Ability to download trades from trading platforms, e.g., BARX, Bloomberg-FXGo, etc., and upload into SAP via custom program using standardized templates High High Gap Interface between market trading platform and SAP

--- 第133页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 133 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 567 4.2 FX Risk Management SAP MRM Integration Ability to integrate market data providers with SAP S/4HANA via SAP Market Rates Management (MRM) for automated foreign exchange rate imports High High Gap Interface between market trading platform and SAP ACM- 568 4.2 FX Risk Management Logistics FX Capture Ability to capture foreign exchange exposure from logistics transactions in foreign currencies High No Change Fit GAR to activate Cash Management Solution ACM- 569 4.2 FX Risk Management Finance FX Capture Ability to capture foreign exchange exposure from finance transactions including invoices in foreign currencies High No Change Fit GAR to activate Cash Management Solution ACM- 570 4.2 FX Risk Management Commodity FX Capture Ability to capture foreign exchange exposure from commodity derivative transactions denominated in foreign currencies High No Change Fit GAR to activate Cash Management Solution ACM- 571 4.2 FX Risk Management Cash Management Update Ability to update SAP Cash Management from source transactions via native integrations in SAP S/4HANA High No Change Fit GAR to activate Cash Management Solution ACM- 572 4.2 FX Risk Management FX Data Source Setup Ability to use SAP Cash Management as data source for foreign exchange exposure management purposes High No Change Fit GAR to activate Cash Management Solution ACM- 573 4.2 FX Risk Management Portfolio Segregation Ability to segregate foreign exchange hedge management by different portfolios (Palm, Lauric, Oleo) using profit centers or segments High Medium Fit Custom Report ACM- 574 4.2 FX Risk Management Hedge Cockpit View Ability to visualize foreign exchange exposures matched with foreign exchange hedges through Hedge Management Cockpit High No Change Fit Standard Solution Behavior

--- 第134页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 134 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 575 4.2 FX Risk Management Hedge Request Generation Ability to create hedge requests automatically or manually within Hedge Management Cockpit High No Change Fit Standard Solution Behavior ACM- 576 4.2 FX Risk Management Hedge to Trade Conversion Ability to aggregate or split hedge requests into trade requests before forwarding to trading platform High Medium Gap No outbound integration with trading platform in absence of SAP TPI or Brisken
ACM- 577 4.2 FX Risk Management Hedge Trading Workflow Ability to execute workflow from Hedge Request to Trade Request to SAP TPI to Trading Platform High Medium Gap No outbound integration with trading platform in absence of SAP TPI or Brisken
ACM- 578 4.2 FX Risk Management Value Month Matching Ability to match notional values by value month as part of standard reporting High No Change Fit Standard Solution Behavior ACM- 579 4.2 FX Risk Management Contract Rate Comparison Ability to compare contract rate with CMHK (pricing assumptions) in Bloomberg High Medium Gap Custom Report
ACM- 580 4.2 FX Risk Management Bank Valuation Import Ability to manually upload unrealized amounts from bank into SAP High High Gap Excel upload via RICEFW Custom Program ACM- 581 4.2 FX Risk Management Source Transaction Reconciliation Ability to reconcile foreign exchange exposure from source transactions High No Change Fit SAP standard solution ACM- 582 4.2 FX Risk Management Trade Reconciliation Ability to reconcile foreign exchange trades High No Change Fit SAP standard solution ACM- 583 4.2 FX Risk Management Net Open Position Reconciliation Ability to reconcile net open exposure High No Change Fit SAP standard solution ACM- 584 4.2 FX Risk Management Cash Management Utilization Ability to utilize SAP Cash Management to fit requirements for FX Exposure Reconciliation High No Change Fit Standard Solution Behavior ACM- 585 4.2 FX Risk Management DF/NDF Classification Ability to classify foreign exchange trades as DF, NDF, DF Swaps, NDF Swaps based on currency pair High Low Fit Basic Config for Customization - GAR to come back to SAP on full list

--- 第135页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 135 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions with assignment as DF or NDF
ACM- 586 4.2 FX Risk Management DF Product Setup Ability to configure DF using SAP standard product type 60A (FX) with transaction type 102 (Forward) High Low Fit SAP standard solution - Need to align with S4 team on product naming convention ACM- 587 4.2 FX Risk Management NDF Product Setup Ability to configure NDF using SAP standard product type 60N (NDF) with transaction type 110 (NDF) High Low Fit SAP standard solution - Need to align with S4 team on product naming convention ACM- 588 4.2 FX Risk Management Settlement Flow Netting Ability to perform netting for settlement flows based on same bank, same value date, and same currency High No Change Fit SAP standard solution ACM- 589 4.2 FX Risk Management Automated Settlement Trigger Ability to auto trigger settlement postings from treasury side High Low Fit SAP standard solution ACM- 590 4.2 FX Risk Management USD Leg Requirement Ability to support cross-currency hedging where one leg is always USD High No Change Fit SAP standard solution - Integration of Cash Management into Hedge Management will be standard ACM- 591 4.2 FX Risk Management Auto Cash Settlement Ability to automatically calculate cash settlement amount based on contract rate, fixing rate, and notional buy/sell amounts High No Change Fit Certain stakholders will be give authorization to authorize the cash settlement amounts ACM- 592 4.2 FX Risk Management Settlement Amount Override Ability for authorized users to overwrite auto-calculated cash settlement amount to match with bank's amount High No Change Fit Certain stakholders will be give authorization to authorize the cash settlement amounts

--- 第136页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 136 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 593 4.2 FX Risk Management Settlement Confirmation Ability to confirm settlement amounts with banks and update if required High No Change Fit Certain stakholders will be give authorization to authorize the cash settlement amounts ACM- 594 4.3 Derivatives Risk Management Cross-Entity Trading Ability to execute trades on BMD (Bursa Malaysia Derivatives) by Singapore entity on behalf of India entity with back-to-back OTC between Singapore and India High Medium Fit Standard Feature
ACM- 595 4.3 Derivatives Risk Management Inter-Portfolio Trading Ability to execute trades where one business portfolio (e.g., Oleo) requests another portfolio (e.g., Palm) to hedge on their behalf with back-to-back futures between portfolios High Medium Fit SAP ACM standard behaviour ACM- 596 4.1 Commodity Risk Reporting Directional Portfolio Transfer Ability to transfer positions from one directional portfolio to another in Soybeans and Bean business High Low Fit Standard Solution Behavior ACM- 597 4.1 Commodity Risk Reporting Position Report Monitoring Ability to monitor Commodity Position Report by front office business users High Medium Fit Customization on Fields/Layout in Report needs to be solutioned further ACM- 598 4.3 Derivatives Risk Management Derivatives Contract Creation Process Ability for Trade Support to create derivative contracts after reconciling trade summary and e-deal slips with broker statement High No Change Fit SAP standard solution - BAPI to call transactions once it hits S4 environment ACM- 599 4.3 Derivatives Risk Management T+1 Trade Creation Ability to support trade creation workflow where traders send deal slips by end of day T0 and Trade Support creates trades in system on T+1 High High Fit Assumption is to be processed manually in the interim, defer BRCD to Phase 2

--- 第137页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 137 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 600 4.3 Derivatives Risk Management T+1 Reconciliation Ability to perform broker statement reconciliation on T+1 High High Fit Assumption is to be processed manually in the interim, defer BRCD to Phase 2 ACM- 602 4.3 Derivatives Risk Management Broker Data Import Ability to receive trade details from brokers and upload trades in SAP S/4HANA via custom program using SAP upload template High Medium Fit Custom Trade Upload Utility ACM- 603 4.3 Derivatives Risk Management Broker Format Alignment Ability to align and support different formats from various brokers for trade upload High Medium Fit Formats need to be aligned outside of SAP ACM- 604 4.3 Derivatives Risk Management Broker Reconciliation Platform Ability to implement SAP Broker Reconciliation for Commodity Derivatives (BRCD) with Excel integration High No Change Fit Standard Solution Behavior ACM- 605 4.3 Derivatives Risk Management Trading Statement Import Ability to import trading broker statements in defined Excel format through SAP Cloud Integration High High Fit Assumption is to be processed manually in the interim, defer BRCD to Phase 2 ACM- 606 4.3 Derivatives Risk Management Clearing Statement Import Ability to import clearing broker statements in defined Excel format through SAP Cloud Integration High High Fit Assumption is to be processed manually in the interim, defer BRCD to Phase 2 ACM- 609 4.1 Commodity Risk Reporting Undetermined Purchase Price Valuation Ability to value inventory using SAP Standard MM price as initial reference when purchase price is not determined, with subsequent true-up posting at invoice step High Medium Fit Part of Inventory Valuation KDD Solution ACM- 612 4.1 Commodity Risk Reporting COGS Quality Posting Ability to post quality claims and discounts to Cost of Goods Sold (COGS) rather than directly to inventory High No Change Fit Standard Solution Behavior

--- 第138页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 138 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 613 4.1 Commodity Risk Reporting Daily Average Price Calculation Ability to activate Material Ledger for all materials with daily average price (COGS) calculation persisted in custom table for MtM calculation reference High High Gap Custome development program - BADI if option 2 can be in real time (after LDC) ACM- 614 4.1 Commodity Risk Reporting Standard/Moving Average Update Ability to implement custom update for material price (Standard or Moving Average) with valuation being one day old High High Gap Custome development program - BADI if option 2 can be in real time (after LDC) ACM- 615 4.4 Virtual Crush Report Backend Yield Percentage Ability to calculate yield percentages (3 stage: 1) Loading, 2) Unloading , 3) Discharge) in backend system directly from contract cost information High No Change Fit Part of Virtual Crush KDD Solution ACM- 616 4.4 Virtual Crush Report ACM CPE Pricing Conditions Ability to use ACM CPE pricing conditions as virtual crush reference for Singapore operations High Medium Fit For SG virtual reference will be the pricing conditions we are maintaining ACM CPE. BOM is for ID to have estimated yield %'s ACM- 617 4.4 Virtual Crush Report Bill of Material Update Ability to maintain and update master data for ACM PP - Bill of Materials (BOM) High Medium Fit Both need to be done independently ACM- 618 4.4 Virtual Crush Report Virtual Crush Yield Adjustment Ability for contracts to follow the same split from MM statistical conditions High Medium Fit Both need to be done independently ACM- 619 4.4 Virtual Crush Report Vessel Contract Display Ability to display P&L and Position reports at contract level with 1:1 contract to vessel relationship High Medium Gap Part of Virtual Crush KDD Solution ACM- 624 4.1 Commodity Risk Reporting Contract Price Reference Ability to use contract price as value reference without copying price to MM module High High Gap Enhancement and Custom Report for Inventory Valuation

--- 第139页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 139 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 630 4.1 Commodity Risk Reporting Custom Config PO Ability to implement custom configuration enhancements at Purchase Order level for price handling High High Gap Reference options for inventory valuation provided by SAP - (ML vs. MAP update) ACM- 631 4.1 Commodity Risk Reporting Policy Compliance Logics for Realised P&L Calculations Ability to support group accounting policy requirements for realised P&L calculations - Alignment of Point of realization High High Gap Proposed solution on blueprint Trade Control - Realized P&L and need to be check again during build phase for policy compliance. ACM- 632 4.1 Commodity Risk Reporting Unrealised to Realised Ability to change P&L status from unrealised to realised at month end High No Change Fit SAP standard solution ACM- 672 4.1 Commodity Risk Reporting Multi-Level P&L Attribution Hierarchy Ability to track P&L attributes through hierarchical structure starting with Legal Entity, then Line of Business (LoB) such as SG (Palm, Lauric, Beans), and finally Portfolio as the lowest level of P&L attribution High No Change Fit Free characteristics will be incorporated ACM- 673 4.1 Commodity Risk Reporting Portfolio-Trader Relationship Management with Free Characteristics Ability to maintain mostly n:1 relationship between Portfolio and Trader with indirect P&L attribution to Trader through Portfolio High No Change Fit Free characteristics will be incorporated ACM- 674 4.1 Commodity Risk Reporting P&L Performance Tracking with Realized and Unrealized Components Ability to track Realized P&L from gains/losses on closed positions High Low Fit Standard SAP Reporting ACM- 675 4.1 Commodity Risk Reporting P&L Performance Tracking with Realized and Ability to calculate and track Open contracts Mark-to-Market (MTM) for unrealized gains/losses on open positions High Low Fit Standard SAP Reporting

--- 第140页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 140 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions Unrealized Components ACM- 676 4.1 Commodity Risk Reporting Multi-Period Time-Based P&L Reporting Ability to provide time-based P&L reporting across multiple periods including Day-over-Day (DoD), Month-to-Date (MTD), and Year-to- Date (YTD) High Low Fit Standard SAP Reporting ACM- 677 4.1 Commodity Risk Reporting Cross-Portfolio Trade Matching and P&L Realization Ability to match trades from different portfolios by broker with subsequent P&L realization High High Gap Custom Report. Sugar Requirement Deferred for Now ACM- 678 4.1 Commodity Risk Reporting Cross-Portfolio Trade Matching and P&L Realization Ability to handle trades that are not matched in SAP due to different portfolio ownership while enabling P&L realization processing High High Gap Custom Report ACM- 679 4.1 Commodity Risk Reporting Cross-Portfolio Trade Matching and P&L Realization Ability to maintain different P&L views for management reporting purposes versus accounting purposes High High Gap Brisken Related ACM- 680 4.3 Derivatives Risk Management Broker Statement Reconciliation with Portfolio Attribution Ability to overlay portfolio attribution on broker statement data to support internal management reporting requirements High High Gap Brisken Related ACM- 721 4.1 Commodity Risk Reporting EOD Snapshot Flexibility Ability to configure EOD snapshot timing and run live position comparisons High No Change Fit Standard ACM Risk Reports and necessary configurations ACM- 722 4.1 Commodity Risk Reporting Monthly Reporting Ability to generate reports by month with configurable logic based on futures/basis High No Change Fit Standard ACM Risk Reports and necessary configurations

--- 第141页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 141 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 724 4.1 Commodity Risk Reporting Net Position Filtering Ability to view net position of contracts with filtering criteria by commodity type and other parameters High No Change Fit Standard ACM Risk Reports and necessary configurations ACM- 725 4.2 FX Risk Management Multiple Currency Support Ability to handle commodities with multiple dealing currencies High No Change Fit Standar ACM Functionality ACM- 726 4.1 Commodity Risk Reporting Delivery-Based Revenue Recognition Ability to recognize revenue based on delivery (BL) rather than invoice for position reporting (Exception to Consider: Non-Standard Settlements accounting needs to accrue for invoices / debits notes not issued out) High High Gap Custom development will be needed ACM- 727 4.1 Commodity Risk Reporting MtM Comparison Analysis Ability to perform side-by-side MtM analysis with configurable columns High No Change Fit Standard ACM Risk Reports and necessary configurations ACM- 728 4.1 Commodity Risk Reporting Stock Visibility in Position Reports Ability to view stock in position reports with options to segregate stock in transit High No Change Fit Standard ACM Risk Reports and necessary configurations ACM- 729 4.1 Commodity Risk Reporting Flexible Report Generation Ability to generate reports by multiple criteria including customer, product, location and other fields High No Change Fit Standard ACM Risk Reports and necessary configurations ACM- 730 4.1 Commodity Risk Reporting Trade P&L Reporting Ability to view full P&L per trade with realized and unrealized differentiation High No Change Gap Custom development needed for Realized P&L. Part of the KDD for Realized P&L ACM- 794 4.1 Commodity Risk Reporting FOB-Based Price Comparison Ability to handle flat price inputs and perform mark-to-market comparisons on FOB basis High No Change Fit Future and Basis and Market reference price needs to be maintained by BU accordingly

--- 第142页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 142 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 795 4.1 Commodity Risk Reporting Flexible Basis MTM Calculation Ability to input basis-only prices and perform mark-to-market calculations against specific basis references High No Change Fit Future and Basis and Market reference price needs to be maintained by BU accordingly ACM- 811 4.1 Commodity Risk Reporting Monthly Inventory Valuation with Daily Updates Ability to perform monthly inventory valuation incorporating daily quantity updates from surveyors and roll up all costs into material cost High No Change Fit Part of KDD Inventory Valuation ACM- 817 4.1 Commodity Risk Reporting [Quantity Difference Case] Periodic Inventory Valuation Ability to capture real inventory values at Goods Receipts and perform batch Inventory Valuation on configurable schedule (daily with optimization or monthly standard) High No Change Fit Part of KDD Inventory Valuation ACM- 835 4.1 Commodity Risk Reporting Automated Trading Margin Calculation and Reporting Ability to automatically calculate trading margins (both replacement and net margins) by comparing local Pakistan market prices with purchase prices, and systematically report these to GAI Singapore for consolidated MTM analysis High Medium Gap Standard ACM risk reports can be modified to accommodate the comparitive MtM calculations for both international and local markets ACM- 836 4.2 FX Risk Management Dual FX Rate Application Ability to use different FX rates for reporting (monthly) and inventory recording (invoice date) High No Change Fit Fx applied can be updated at individual load during LDC & Settlement. Fx Hedging is not done by GAR Pakistan. Need to be checked if SG's Fx Hedging affects GAR Pakistan ACM- 842 4.1 Commodity Risk Reporting Goods Receipt based Valuation with Duty Accruals Ability to value inventory at goods receipt by including accrued import duties at estimated FX rates, ensuring complete landed cost in inventory valuation even when High High Gap Refer to KDD ofr Inventory Valuation

--- 第143页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 143 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions actual duty payment occurs later at different FX rates ACM- 902 4.1 Commodity Risk Reporting Soft Oils MTM with Price Fixing Ability to perform daily MTM using Dutch Mill benchmarks with price fixing capability after product delivery High

Fit SS[Jan07]: Flagged this as a Fit. Standard ACM functionality allows Price fixation after product delivery. Market reference as Dutch Mill Benchmark can be configured in the CPE setup process for the relevant commodities accordingly. ACM- 909 4.1 Commodity Risk Reporting Inventory Cost Distribution Ability to allocate inventory costs using multiple methodologies and allocation bases for cost distribution High

Gap Enhancement Needed ACM- 915 4.1 Commodity Risk Reporting Unified Position Management Report Ability to display physical, futures, and speculative positions in single configurable report with commodity- level aggregation and contract-level drill-down High

Fit SS[Jan07]: Flagged this as a Fit. Standard ACRA Consolidated Position report displays these positions. The views to consolidated summary can be configured as a variant to the same report. Further granular requirements which are not mentioned here can be discussed during implementation phase if needed. ACM- 917 4.3 Derivatives Risk Management Futures Mass Roll Execution Ability to execute futures roll before expiry with spread application across book and valuation updates High

Fit Manually close existing Futures contract and open new Futures contract with new expiry.Mass processing

--- 第144页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 144 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions is not available, contracts processed one by one. ACM- 918 4.1 Commodity Risk Reporting Quantity-Based Position Monitoring Ability to track and report positions in metric tons to support risk management requirements High

Fit SS[Jan07]: Flagged this as a Fit. Standard ACM Functionality allows for reporting in multiple UoMs: Pricing UoM, Contract UoM, etc. Reports can be configured only one of these or both as per need.
ACM- 931 4.3 Derivatives Risk Management Physical Contract Creation w.r.t to Futures Ability to automatically create physical contracts with respect to futures account

Scenario: 1. Physical Contract Execution & Position Closure The problem: Futures closes, P&L realized with settlement via margin account. Physical delivery occurs within ~2-3 weeks. Physical contract created in ACM but has no one to invoice since payment already happened through futures margin. ACM requires invoicing/revenue recognition to close positions. Without billing, position stays open indefinitely. Operations concern: Team might resist execution on physical side when settlement already complete on futures. Creating contract is acceptable, but additional execution steps might be an issue. High High Gap Enhancement as per the request

--- 第145页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 145 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions Current Practice: Close futures → Open separate physical position (manual workaround is GAR’s as-is process) but the physical leg in the current system is still open. ACM- 932 4.1 Commodity Risk Reporting Link sales order COGS to specific purchase contract pricing [Settlement] Ability to recognize cost of goods sold based on specific purchase contract pricing (back-to-back costing) instead of moving average pricing, to accurately reflect margin per transaction for trading operations High High Gap Inventory Val. Enhancement ACM- 1054 1. Commodity Position and P&L Reporting Shipment reports Ability to generate reports by system according to required filters (eg. Period, Commodity, Destination, Buyer, etc.) High High Gap Custom Report will be required and Display Report needs to be developed as per requirement ACM- 1063 1. Commodity Position and P&L Reporting Backdates contracts into risk reporting Ability to allow backdated transactions into risk reporting. High High Gap Custom Risk Report. KDD discussion. Known GAP (Sneha) ACM- 1066 CPE Local Market data setup Ability to create market indices based on location for same product
Medium Medium Fit Exist in Standard Functionality, customization is required as part of initial/ baseline setup (CPE Setup) ACM- 1071 1. Commodity Position and P&L Reporting Recap HIP BBM & HIP BBN (biodiesel) Ability to capture HIP BBM & HIP BBN price into valuation point (pricing reference for Biodiesel from government released on monthly basis in pdf file via email, by end of this month govt release prices for next month) Medium High Gap Enhancement in TRM ACM- 1072 1. Commodity Position and P&L Reporting Indo Purchase Ability to convert transacted purchase, GR/realized purchase and open PO IDR amount to USD High Low Gap Custom reporting to display value based on specific

--- 第146页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 146 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions amount use trade date exchange rate (Bank Indonesia middle rate). e.g. PO input date is on 4 July, but actual trade date is on 3 Jul, use the USD exchange rate for 3 Jul. exchange rate types and for appropriate dates ACM- 1073 1. Commodity Position and P&L Reporting Indo Sales Ability to convert transacted sales, GI/realized sales, Billing sales, and open sales IDR amount to USD amount use trade date exchange rate (Bank Indonesia middle rate) High Low Gap Custom reporting to display value based on specific exchange rate types and for appropriate dates ACM- 1081 1. Commodity Position and P&L Reporting Indo Sales (Biodiesel) - Custom report Ability to have report of biodiesel allocation sales details complete with the estimate billing claim to BPDP.

Relate to the allocated/ non allocated custom field for Biodiesel Sales Contract. Need to track the billing claim to BPDP

Related to CTRM 1212 Medium High Gap Custom Risk Report. Generate report for biodiesel allocated sales, with the details of claim billing to BPDP (government) ACM- 1082 1. Commodity Position and P&L Reporting Indo Purchase & Sales - Outstanding contract report Ability to generate long outstanding purchase and sales report, e.g outstanding purchase contract > 90 days High High Gap Custom Report. SAC (dashboard) reports can be utilized ACM- 1083 1. Commodity Position and P&L Reporting Report Purchases Ability to report on the top vendors and vendors group by actual quantity purchased Low High Gap Custom Report. SAC (dashboard) reports can be utilized ACM- 1084 1. Commodity Position and P&L Reporting Customer sales report Ability to create a report to display annually and monthly sales by customer.
Low High Gap Custom Report,

CTRM 1082 - 1084 can utilize the same dashboard/ report

--- 第147页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 147 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 1085 1. Commodity Position and P&L Reporting P/L Impact
Ability to match commodity with local price curves (Index) or international forward curves based on the PnL needed Medium High Gap Custom Report ACM- 1086 1. Commodity Position and P&L Reporting P/L Impact Ability to automatically calculate and report the P/L impact from rolling trades to the next contract month Medium High Fit Exist in Standard Functionality ACM- 1087 CPE Market Price Feed Ability to accept feed of EOD or market close prices for valuation purposes Medium Low Fit Exist in Standard Functionality. ACM allows manual price upload ACM- 1088 1. Commodity Position and P&L Reporting Trading Performance Report (TPR) Ability to generate trading performance report on a daily and monthly basis. Report should include both realized and unrealized PnL
Medium High Gap Custom Report. Only basic functionalities are provided by ACM ACM- 1089 1. Commodity Position and P&L Reporting Daily Position The system should have the ability to report the movement of day over day position Medium High Fit Exist in Standard Functionality; there are DOD reports where we can show delta or variants from previous day (MOM/YOY also available) ACM- 1090 1. Commodity Position and P&L Reporting EOD Be able to run EOD with all the pre checks to ensure data and valuation integrity Medium High Fit Exist in Standard Functionality ACM- 1091 1. Commodity Position and P&L Reporting MtM Calculations: Physical Ability to calculate MTM on all physical contracts captured High High Fit Exist in Standard Functionality; physical contracts will be in ACM, and can be shown in MTM reporting. ACM- 1092 1. Commodity Position and P&L Reporting Report - Daily Changes to Contracts Ability to generate a report on daily changes to contracts Medium High Fit Exist in Standard Functionality

--- 第148页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 148 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 1093 1. Commodity Position and P&L Reporting Contracts report The system should have the ability to download all deals at actualization for review, by contract type, Tons sold by, various parameters, (legal entity book, deal type, etc.) Medium Medium Gap Custom Report ACM- 1097 1. Commodity Position and P&L Reporting Contract profitability Ability to show/report on profitability per contract
Medium Medium Fit Exist in Standard Functionality. PnL report can be utilized ACM- 1098 1. Commodity Position and P&L Reporting Contract balance (in-transit) report Ability to create an open contract balance report daily, weekly, monthly, and on demand by multiple sorting and filter variables and export to Excel Medium High Gap Custom Report. SAC report can be utilized ACM- 1099 1. Commodity Position and P&L Reporting Contract History Report Ability to create a report on closed contracts by counterpart(s) and / or Commodity using a date range Medium High Gap Custom Report. Details can be seen and downloaded from ACM ACM- 1100 1. Commodity Position and P&L Reporting Create traceability report Traceability Report of cancelled orders and invoices, for every customer/contract with reasoning. Medium Medium Gap Custom Report. Doc flow workcenter ACM- 1101 1. Commodity Position and P&L Reporting Prepayment Information Ability to calculate days since DP payment date (current report date minus DP Payment Date) Low Medium Gap Custom Report ACM- 1102 1. Commodity Position and P&L Reporting Prepayment Report Ability to generate report of late of outstanding PO with PO and DP qty and overdue status (top 15 vendor group) Low Medium Gap Custom Report ACM- 1103 1. Commodity Position and P&L Reporting Prepayment Report Ability to generate report of top 10 vendor group of outstanding PO with prepayment Low Medium Gap Custom Report

--- 第149页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 149 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 1104 1. Commodity Position and P&L Reporting Prepayment Report Ability to generate report of Late or outstanding PO with PO and DP amount (more than IDR 2 bio) and overdue days (more than 30 days) Low Medium Gap Custom Report ACM- 1105 1. Commodity Position and P&L Reporting Prepayment Chart Ability to generate prepayment chart based on weekly DP prepayment aging bracket (current, 1-15, 16-30, 31-60, 61-90, over 90) Low Medium Gap Custom Report ACM- 1106 1. Commodity Position and P&L Reporting Prepayment Report to SG Credit Risk Ability to generate report of outstanding prepayment as of end- month and subsequent invoice/good receipt (15 days after end-month) and net advance payment after subsequent with aging bracket and current/overdue separation (in USD and IDR). Low High Gap Custom Report ACM- 1107 1. Commodity Position and P&L Reporting Contract Reporting Ability to report Open Sales Orders by BU/ business High Medium Gap Custom Report. Details can be verified at Maintain Nomination App ACM- 1108 1. Commodity Position and P&L Reporting Indo Purchase Ability to report open purchase orders by commodity, commodity group, location, 3rd party/Upstream, vendor, vendor group, contract type, specification High Medium Gap Custom Report. Details can be verified at Maintain Nomination App ACM- 1111 1. Commodity Position and P&L Reporting Indo Purchase Ability to generate upstream purchase report High Medium Gap Custom Report ACM- 1112 1. Commodity Position and P&L Reporting Manage Position Ability to review positions (by commodity, delivery period, customer, etc.) and manage their sale/purchase trades accordingly Medium High Fit Exist in Standard Functionality. Risk Reporting

--- 第150页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 150 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 1113 1. Commodity Position and P&L Reporting Historical Physical and Value Report Ability to provide a report that shows the daily realized gains/losses on physical positions, highlighting the changes in value from the previous day. Medium High Gap Exist in Standard Functionality. Risk Reporting. KDD discussion ACM- 1114 1. Commodity Position and P&L Reporting P&L Attribution & MTM Valuation Ability to report on and reconcile tax and levy for relevant commodity. Medium High Gap Report

SS: Expenses can be used to record this if the Team is able to split the Levy amount applicable to the individual contract.
ACM- 1116 CPE Market Price Report - Reuters Daily market prices over a year (various product and location, local and export). Medium Low Fit Exist in Standard Functionality. Update prices in Transaction Code FDCS17 and FDCS17B ACM- 1118 1. Commodity Position and P&L Reporting Exchange Rate Ensure NO exchange rate or converted value using trade date transferred to SAP.

Exchange rate for Contract/ Trade reporting (Bank Indonesia rate) is different with SAP Billing exchange rate (Tax rate) High Low Gap Custom Report. TRM ACM- 1119 CPE Indo Purchase Mark to market for purchase with 2 market prices: - Reuters FOB down to Indo - Local Market prices Medium Medium Fit Exist in Standard Functionality, can have multiple market price reference ACM- 1120 1. Commodity Position and P&L Reporting Indo Sales For realised sales use product level COGS Medium High Gap KDD topic - Realized report

--- 第151页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 151 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 1121 1. Commodity Position and P&L Reporting P&L Report Ability to show PnL report (realised and unrealised) based on Local Market price and Reuters (2 views) Medium High Gap KDD topic - Realized report ACM- 1122 1. Commodity Position and P&L Reporting Indo Purchase Ability to generate transacted purchase report High Medium Gap Custom Report, CTRM 1122-1124 is related ACM- 1123 1. Commodity Position and P&L Reporting Indo Sales Ability to generate transacted sales report High Medium Gap Custom Report ACM- 1124 1. Commodity Position and P&L Reporting Backstop Sales Ability to generate backstop sales report High Medium Gap Custom Report ACM- 1125 1. Commodity Position and P&L Reporting Prepayment Report Ability to generate prepayment report: Able to produce 2 prepayment reports: Transacted and Open with Prepayment information ie. DP Date, DP amount paid, % DP, DP qty based on DP paid, GR qty, remaining DP qty, remaining DP amount,
Low High Gap Custom Report ACM- 1126 1. Commodity Position and P&L Reporting Indo Purchase Ability to generate purchase report on annual basis that contains of respective year vendor name, number of transaction, purchase amount, outstanding downpayment amount and outstanding payment number of transaction Low High Gap Custom Report ACM- 1127 1. Commodity Position and P&L Reporting Indo Purchase Ability to generate significant purchase report (counterparty that has increase transacted purchase by 200% compared to previous one year average) Medium High Gap Custom Report

--- 第152页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 152 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 1128 1. Commodity Position and P&L Reporting Indo Sales Ability to generate realized sales report for both local and export transactions High High Gap KDD Topic - Realized report ACM- 1130 1. Commodity Position and P&L Reporting Report InterCompany inventory movements Create a report that separates intercompany shipments from 3rd party. Medium Medium Gap Custom Report. Contract types, LDC (inter company check box) can be used ACM- 1131 1. Commodity Position and P&L Reporting P&L Attribution & MTM Valuation Ability to have a predefined rule on whether the load or the discharge port drives default valuation - e.g. for local purchase deals, always default destination port as the driver; for export sales, always default load port as the driver.
Medium Medium Fit Exist in Standard Functionality. This case comes under standard incoterms

Valuation will be decided based on incoterms and corresponding LDC events (load/unload) ACM- 1132 1. Commodity Position and P&L Reporting Daily PnL Ability to generate real time reports on position, MtM and P&L(unrealized). Medium Medium Fit Exist in Standard Functionality, each report can be generated real time from SAP ACM- 1133 CPE MTM Valuation Curve Assignment Ability to link market price for upstream CPO purchase to D-1 local market price curve Scenario: PT Smart purchase CPO from Upstream on 8th August but using 7th August Local Market Price to capture for FOB margin

7th August price: 490 8th August price: 500

PO Date: 8th August FOB Price captured: 490 instead of 500 Medium Medium Fit Exist in Standard Functionality. Valuation points can be set for both destination and origin.

--- 第153页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 153 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 1324 1. Commodity Position and P&L Reporting Net off Advance Sales & Purchase against AR & AP Ability to generate report to show net off advance sales & purchase against AR and AP based on Sales/Purchase Contract.

Net off advance sales against the Open AR. Net off advance purchase against the Open AP.

Refer to the full ACM summary posting in excel Medium High Gap Custom report to be generated.

SS: More details needed to detail out the Structure of the report ACM- 1354 1. Commodity Position and P&L Reporting Indo Purchase - Estimated vs Actual Fee Ability to set estimated fees by date, product and destination that will be automatically assigned and ability to captured the actual fees to allow comparison between the estimated and actual fees High Medium Gap KDD Fees & Expense session ACM- 1358 1. Commodity Position and P&L Reporting Recap of DMO Cost Ability to calculate DMO Cost from market price Medium

Gap Latest Update (24th July):

Takes Rueters price and minusing DMO cost (formula shared by Indo TC team) from it and result will be taken as reference to calculate the MtM.

Need to find a solution by adding this DMO cost into system as pricing condition with all the componets

--- 第154页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 154 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions

Indo TC (Silvia) to check with SG team for more details ACM- 1359 1. Commodity Position and P&L Reporting Indo Purchase & certification Info Ability to capture information of certification (e.g certification number, certification type, premium, etc) and specification (e.g quality, discount, premium, etc) High

Gap DPQS can be use for characteristics, for certification ID custom field can be cascaded down to subsequent document as per the requirement

Comment by Sneha:

Certification details can

also be listed as a characteristic in DPQS. ACM- 1360 1. Commodity Position and P&L Reporting Indo Purchase & Sales certification report Ability to generate report of certification (e.g certification number, certification type, premium, etc) and specification (e.g quality, discount, premium, etc) High

Gap Custom report ACM- 1366 1. Commodity Position and P&L Reporting Indo Purchase & Sales - DPQS Ability to have trading quality and shortage claim report High

Gap Comment by Sneha:

Need to be discussed in detail as part of Claims management KDD ACM- 1367 1. Commodity Position and P&L Reporting Estimated Margin Margin Calculation should be compare with report date and transacted date

Explanation: Medium

Gap Margin Enhancement

--- 第155页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 155 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions 1.On 28 July, a trade was executed at 800 USD/MT.

2.On the same day, the market price was 820 USD/MT, meaning the trader had a positive margin of +20 USD/MT at the time of the deal.

3.However, by the reporting date (04 August), the market price dropped to 750 USD/MT.

4.If the position is still open (i.e., not yet delivered or billed), this drop leads to an negative margin(unrealized loss) of -50 USD/MT ACM- 1368 1. Commodity Position and P&L Reporting Report sales - Dashboard Able to generate information for DMO sales accroding to the existing dashboard. Information includes but not limited to:
1. Sales contract no 2. CXC contract no 3. SC & SO date 4. Sales org 5. Incoterm 1,
6. Sold to party 7. Ship to party, material 8. Material category 9. Price per kg 10. Refinery 11. Customer PO number 12. Maklon fee 13. SO usage type Low

Gap SS: Custom report to be generated.

More details needed to detail out the Structure of the report

--- 第156页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 156 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions 14. SC & SO volume 15. Daily DMO goods issued ACM- 1370 CPE Indo Purchase & Sales - IDR/KG Ability to generate price in IDR/KG

Explanation:

this price amount per 100 is because currently SAP ECC As-Is cannot accommodate the comma for IDR, and also the comma accommodated only for 2 digit. The amount become "keriting" when divided with the VAT, therefore this is the workaround to capture the amount correctly. Medium

Fit SS: Reports can be configured to show in both pricing currency and document currency. The floating point or the number of decimal places can be configured in ACM. ACM- 1371 1. Commodity Position and P&L Reporting Prepayment Information Ability to determine overdue day and ageing bracket based on normalized delivery date (SAP contractual delivery date deduct with SAP contractual payment date adding with actual DP payment date) compared to report date. Low

Gap Comment by Sneha:

This is a detail reporting requirement and can be addressed during implementation. All the relevant information is recorded wrt Prepayment Request and its Posting and Settlement related tables. ACM- 1380 1. Commodity Position and P&L Reporting Indo Purchase Ability to generate trendline and table comparison of Transacted PO, Realized Sales, and Inventory Position (Weekly) - Transacted PO -> Qty (In MT) with contract classification (LTA, LTC, SPOT, Upstream) at specific date - Realized Sales -> Total Billed Qty (In MT) for both export and local Low

Gap Comment by Sneha:

Multiple reporting requirements are combined here. Many of them can be shown using ACM Risk reports. These are detailed reporting requirements, need Technical/Functional

--- 第157页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 157 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions sales (trading and branded) at specific date. - Inventory -> Inventory position/balance (in MT) and stock- in-transit (in MT) at specific date. specification during implementation. ACM- 1381 1. Commodity Position and P&L Reporting Indo Purchase, Sales & Inventory Ability to generate trendline and table comparison Transacted PO Trendline (Weekly) - Distinguish trendline between 3rd Party and Upstream PO and per Commodity Low

Gap Comment by Sneha:

ACM Position reports and MtM reports can be used to make this comparison by selecting the right Commodity, plant, Delivery period criteria. ACM- 1382 1. Commodity Position and P&L Reporting Indo Purchase & Sales - Contract Amendment Ability to obtain detailed report day to day open contract amendment- for example, price change/ etc. trail, quantity changes, loading port change Medium

Gap Comment by Sneha:

Use MtM New Activity report ACM- 1383 1. Commodity Position and P&L Reporting MtM Calculations: Physical Ability to MTM both forward physical contracts and inventory, including inventory in transit Medium

Gap Comment by Sneha:

Use MtM Current report to see current status of all contracts. Can be filtered by Commodity, date range, plant ACM- 1384 1. Commodity Position and P&L Reporting Compliance & Due Diligence Tracking Ability to explain Daily Unrealised PnL Moves to attrributes such as execution of open positions, changes in tonnages, price, FX rates, new positions etc High

Gap Custom Report ACM- 1385 1. Commodity Position and P&L Reporting MTM Valuation Curve Assignment MTM is computed based on (Contract Price - Costs) vs FOB Valuation curve Medium

Gap Comment by Sneha:

Pricing approach to use

--- 第158页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 158 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions FOB price always as Futures + 'CIF Component' as primary basis + negotiated premium as Secondary basis
ACM- 1387 1. Commodity Position and P&L Reporting Indo Purchase - Delivery Penalty Ability to generate late delivery penalty report Medium

Gap Comment by Sneha:

Late days could be calculated and fees can be added at LDC. The reporting requirement can be addressed during implementation. Relevant information would be coming from ACM Settlement table where the Late fees Qty & rate & amount are recorded. ACM- 1390 1. Commodity Position and P&L Reporting Indo Purchase - Realized Ability to generate realized purchase report
High

Gap Comment by Sneha:

Part of Realized PnL report KDD ACM- 1391 1. Commodity Position and P&L Reporting Indo Purchase - Premium Ability to generate purchase premium report High

Gap Comment by Sneha:

ACM risk analytics premium report can be used for this ACM- 1393 1. Commodity Position and P&L Reporting Indo Purchase - Vendor list Ability to generate report of top 10 vendor based on fav/unfav amount Low

Gap Custom Report ACM- 1394 1. Commodity Position and P&L Reporting Indo Sales - Customer list Ability to generate report of top 10 customer based on fav/unfav amount Low

Gap Custom Report

--- 第159页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 159 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions ACM- 910 4.1.3 Mark-to-Market Reporting (FOB-based price comparisons) Cross-Currency Premium Input Ability to support multiple currency combinations for premium and futures pricing

(new)

ACM- 938 4.1 Commodity Risk Reporting Dynamic COGS Simulation via Pricing Conditions for All-In and Unpriced Contracts The business requires a COGS simulation breakdown within SAP ACM that supports both: - Immediate-Priced (All-In) Contracts, and - Unpriced / Deferred Pricing Contracts

The COGS simulation must provide structured visibility of cost components (e.g., Raw Material, Chemicals, Packaging, Overhead) for margin transparency and internal profitability analysis.

A. Immediate-Priced (All-In) Contracts For contracts where final pricing is determined at contract creation: - The system shall calculate and display the full COGS simulation breakdown at the time of contract entry. - Certain cost components (e.g., Raw Material) may derive values from predefined MTM or market references.

(new)

--- 第160页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 160 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions The simulation may be: - Stored statically (snapshot at contract creation), or - Recalculated based on defined logic (to be clarified by business).

The COGS breakdown shall be visible at contract item level for margin comparison against the sales price.

B. Unpriced / Deferred Pricing Contracts For contracts where pricing is determined later (e.g., floating price, basis contract, pricing window): The system shall allow COGS simulation to be: - Calculated dynamically based on the latest applicable MTM or reference price. - The simulation must remain viewable even before final pricing is fixed.

Upon pricing fixation, the system must: - Either freeze the simulated COGS at fixation date, or - Continue recalculating based on defined business rule (to be confirmed).

The logic for MTM retrieval must: - Identify the relevant reference

--- 第161页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 161 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions price, - Apply defined formulas/conversion factors, - Populate the respective cost component condition. ACM- 951 Report PKPG Report Generation Ability to generate PKPG reports on per-transaction basis and support accounting posting from GAI to GAITL

(split)

ACM- 952 Report Trade Exception Monitoring Ability to monitor foreign exchange trades executed outside of SAP system

(split)

ACM- 953 4.1.3 Mark-to-Market Reporting (Freight P&L) Platform Trade Download Ability to download trades from trading platforms, e.g., BARX, Bloomberg-FXGo, etc., and upload into SAP via custom program using standardized templates

(split)

ACM- 957

SAP MRM Integration Ability to integrate market data providers with SAP S/4HANA via SAP Market Rates Management (MRM) for automated foreign exchange rate imports

(split)

ACM- 961

Logistics FX Capture Ability to capture foreign exchange exposure from logistics transactions in foreign currencies

(split)

ACM- 964

Finance FX Capture Ability to capture foreign exchange exposure from finance transactions including invoices in foreign currencies

(split)

ACM- 966

Commodity FX Capture Ability to capture foreign exchange exposure from commodity

(new)

--- 第162页 ---

S/4HANA Transformation Project Solution Blueprint – Trade & Origination (ACM) Trade Control

File Name: S4_P2_ACM_PR05_Blueprint_Trade Control_V1.00 Status: Final

Page 162 of 162 Req. No. Process Level 3 Requirement Requirement Description
Criticality Degree of Change Fit/Gap Assessment Solutions derivative transactions denominated in foreign currencies