Hierarchy
SAP_APPL (Software Component) Logistics and Accounting⤷
LO-CMM-BF (Application Component) Basic Functions⤷
LOG_CMM_ANALYTICS (Package) Analytics for Commodity Managements
IMG Activity
| ID | CMM_MTM_OVERVIEW | Overview |
| Transaction Code | S_EBJ_98000179 | (empty) |
| Created on | 20121127 | |
| Customizing Attributes | CMM_MTM_OVERVIEW | Overview |
| Customizing Activity |
Document
| Document Class | SIMG | Hypertext: Object Class - Class to which a document belongs. |
| Document Name | CMM_MTM_OVERVIEW |
Use
For standardized financial instruments (for example futures), the exchange markets publishing these instruments provide regular valuations (for example daily quotations for 3-Month Copper Futures at the London Metal Exchange [LME]). These quotations are the current market prices of these instruments. By comparing such a current market price with the price at which an instrument was purchased in the past, you can determine a #mark-to-market# value.
The mark-to-market value is defined as #current market value according to current quotation# minus #value at which the instrument was purchased#.
For an individual purchase contract for a commodity (for example a copper purchase from a supplier/mining company delivered in a specific port), the terms and conditions are agreed by the business partners. The conditions are typically based on financial instruments for that commodity, plus deductions or surcharges based on the specific locations/Incoterms, non-standardized quality aspects (for example a specific sulfur content) and other very specific elements.
For mark-to-market, a #typical# market value (or #fair value#) of the contract needs to be determined. For that reason, statistical conditions can be set up in the pricing procedure which, taken together, define such a market value.
In the following steps, you define rules that specify how a contractual value, market value and a resulting mark-to-market value can be determined through conditions within the pricing procedure.
Requirements
Standard settings
Activities
Example
Business Attributes
| ASAP Roadmap ID | 204 | Establish Functions and Processes |
| Mandatory / Optional | 2 | Optional activity |
| Critical / Non-Critical | 2 | Non-critical |
| Country-Dependency | A | Valid for all countries |
Assigned Application Components
| Documentation Object Class | Documentation Object Name | Current line number | Application Component | Application Component Name |
|---|---|---|---|---|
| SIMG | CMM_MTM_OVERVIEW | 0 | EBJ0000022 | Commodity Management in Logistics |
Maintenance Objects
| Maintenance object type |
History
| Last changed by/on | SAP | 20121127 |
| SAP Release Created in | 617 |
