Understanding S/4 HANA Licenses for Automotive, Oil & Gas, and Public sector

Understanding S4 HANA Licenses for Automotive Oil & Gas and Public sector
SAP S/4 HANA licenses are available for six verticals as of October 2017 – Automotive, Life Sciences, Oil & Gas, Public Sector, Retail, and Utilities. Let’s look at the HANA licenses descriptions, metric definitions & list prices of Automotive, Oil & Gas and Public sectors in this post.

SAP S/4 HANA – Automotive

SAP S/4HANA Automotive for vehicle sales management

This can help streamline vehicle-ordering processes, especially when working across multiple brands and regions by synchronizing supply and demand by automatically allocating vehicles to dealers. This reduces inventory to increase transparency while ensuring efficiency over operations and vehicle distribution chains. It can help manage the entire vehicle lifecycle to deliver the right vehicle to the right place at the right time. It supports an end-to-end, collaborative order-to-delivery process for new and used vehicle sales and provides a single, centralized way to procure, manage, sell, and track vehicles.

The Key Capabilities are :

• Searching and locating
• Vehicle configuration and pricing (online)
• Vehicle administration, tracking, and reporting
• Business integration (procurement and sales) – make-to-order and make-to-stock
• Support for flexible business processes
• Allocation
• Used vehicle trade-in and sales
• Pre-delivery inspection
• Up-fitting and rework
• Financial accounting

Metric definition: Products are the annual total number of vehicles and finished goods (for VMS/DBM) or Vehicles and Parts (for sequenced manufacturing) in the context of Automotive Solutions.

List Price: US$ 33,000 per every 10,000 products

SAP S/4 HANA – Oil & Gas

All products under SAP S/4 HANA Oil & Gas has one common metric definition.

Metric definition:

Barrel of Oil Equivalent per Day (BOEPD) is a unit of measure used in the oil and gas industry that allows aggregating the produced, scheduled or sold quantities of hydrocarbons from both conventional and unconventional sources over the prior 12 month consecutive months or, where historical data is not available, over the planned or estimated future of 12 months. For example, while gas production is generally measured as a volume per time-period such as cubic meter per day, it needs to be converted into its equivalent in barrels of oil to determine the total quantity of oil & gas produced as consistent measurements. All products under SAP S/4 HANA Oil & Gas are priced in terms of 10,000 Barrel of Oil Equivalent per Day (BOEPD)

SAP S/4 HANA Oil & Gas for hydrocarbon management

This enables downstream oil and gas companies to run their sales and logistics related business processes. Hydrocarbon inventory management allows companies to manage their stock at distribution terminals. Inventories can be managed in different units of measure to fulfill legal and compliance requirements. The solution allows marketers to streamline and standardize their contract-to-cash and order-to-cash processes. This includes contract, sales order, price management, and excise tax handling for commodities as well as bulk transportation, exchange and throughput handling at terminals.

Key Capabilities:

• Hydrocarbon inventory management
• Contract and sales order management for commodities
• Price management for commodities
• Excise tax handling
• Bulk product transportation
• Exchange and throughput handling

List Price: US$ 63,750 per 10,000 Barrel of Oil Equivalent per Day (BOEPD)

(One time + 22% AMC on SAP Enterprise support)

SAP S/4 HANA Oil & Gas for hydrocarbon supply and primary distribution

This package covers business processes for the management and execution of the set of bulk supply chain activities, from initial planning to operations and scheduling right through to final settlement. This applies for both the midstream supply chain sector (for example, crude oil, from its release out of upstream processes to the handover to the refinery) as well as the primary supply chain sector (refined products from the refinery to the final bulk terminal or customer). A spectrum of bulk supply chain hydrocarbons may be managed within this scenario group, from crude oil to refined products to natural gas and liquid gases. Key processes include planning, optimization, operations, scheduling, execution, settlement, trading and risk management.

Key Capabilities:

• Demand planning and forecasting
• Bulk supply planning and sourcing
• Inventory management and projection
• Bulk logistics scheduling
• Nomination management
• Berth and dock scheduling and operations
• Event management

List Price: US$ 123,750 per 10,000 Barrel of Oil Equivalent per Day (BOEPD)

(One time + 22% AMC on SAP Enterprise support)

SAP S/4 HANA Oil & Gas for retail network fuel operations

This helps manage fuel sales processes and material movements for point of sales at service stations. It also helps create dealer and clearinghouse settlements with retail fuel operations solutions from SAP for service stations. Moreover, it provides a well-structured overview of service station network operations and documents for each station. A payment-card management solution can be used to settle your own fleet cards included in the retail fuel operations software.

List Price: US$ 247,500 per 10,000 Barrel of Oil Equivalent per Day (BOEPD)

(One time + 22% AMC on SAP Enterprise support)

SAP S/4 HANA Oil & Gas for secondary distribution management

SAP S/4HANA Oil & Gas for secondary distribution management is a priced capability for SAP S/4 HANA Oil & Gas.

Key Capabilities:

• Order management: Automate end-to-end processes for sourcing and supplying refined products and liquid petroleum gas from refineries and product terminals to end consumers with order management and logistics automation software from SAP. Improve order taking and collaborate with logistics execution, support credit-limit management for wholesale customers, use best-buy scenarios and handle collective orders. Monitor gains and losses for deliveries executed by hauler companies or your own truck fleet.
• Demand forecasting (planned for 1710 release): Manage stock at end-consumer locations based on individual demand and consumption, and optimize replenishment cycles. Use available forecast methods to determine the next delivery date for a consumption-based forecast, temperature-based consumption forecast, and cyclic replenishment.
• Continuous station replenishment: Predict demand of fuel products based on statistical consumer behavior and future events for continuous station replenishment. Define minimum quantities needed, and calculate expected stock-out time to determine replenishment timing. Calculate consumption and planned refill cycle using average sales volume of time segments such as hours per weekday.

List Price: US$ 247,500 per 10,000 Barrel of Oil Equivalent per Day (BOEPD)

(One time + 22% AMC on SAP Enterprise support)

SAP S/4 HANA Oil & Gas for upstream contracts management

The SAP Upstream Contracts Management for Oil & Gas package supports business processes for the management and execution of upstream activities relating to joint operating agreements, joint ventures, and production sharing contracts (PSCs). Joint venture management processes are supported, including partner billings, overhead calculations, and cash calls, per joint operating agreement terms. To support asset portfolio activities, the farm in/out, earn in/out, and equity redetermination accounting requirements are also supported. The package supports complex contractual terms relating to PSCs, including calculations for gross production revenue and royalties as well as shares of the petroleum profits (“profit oil”) from the remaining revenue available for sharing. It supports the complex accounting processes to calculate, categorize, and recover contractors’ costs. It also supports contractual terms relating to sharing of the profits, entitlements, or other costs. The package provides the flexibility to configure the handling of unusual contractual terms, which may vary by contract, company, and country.

Key Capabilities:

• Joint venture management
• PSC management
• Financial execution

List Price: US$ 63,750 per 10,000 Barrel of Oil Equivalent per Day (BOEPD)

(One time + 22% AMC on SAP Enterprise support)

SAP S/4HANA Oil & Gas for upstream revenue management

The SAP Upstream Production Management for Oil & Gas package (option for U.S. production) supports U.S. hydrocarbon production measurement and allocation through revenue distribution to owners along with tax and royalty reporting to both federal and state entities. Production data of all products, from crude oil and condensate to natural gas and natural gas liquids, is tracked in the system right from the well-completion level. The allocation process satisfies the determination of production with all production dispositions, including recycled and fuel and flare volumes.

Key Capabilities:

• Assigning produced volume to contracts and splitting contract volumes by ownership
• Balancing statements report variations of lifted volumes to contractually entitled volumes
• Support for both fixed and formula-based pricing and support for normal rates and any special incentive rates through severance tax calculations
• Support for the revenue process for settlement diversity requirements and special compensation provisions
• Ability to generate and fully integrate all accounting entries with the financial and controlling functions of the SAP ERP application
• Special reporting of royalty and tax information to state and federal agencies (available for selected reporting jurisdictions)

List Price: US$ 93,750 per 10,000 Barrel of Oil Equivalent per Day (BOEPD)

(One time + 22% AMC on SAP Enterprise support)

S/4 HANA – Public Sector

SAP Budgeting and Planning for Public Sector, add-on for S/4 HANA

For most public-sector organizations, a budgeting process is an annual event. Reconciling discrete departmental estimates, conducting executive branch reviews, and clearing budget committee hearings must be completed before legislative approval can be gained. In addition, legislators, the public, and other key and interested organizations are all demanding a new level of transparency to help bring improved clarity to the budget. Given the existing financial pressures, executive and legislative branch leaders need the ability to better manage ongoing budget adjustments throughout the year. This product is based on SAP BusinessObjects Planning and Consolidation application, version for SAP NetWeaver.

Key Capabilities:

• Add-on privilege to run the SAP BusinessObjects Budgeting for Public Sector application in an SAP S/4 HANA environment

Metric Definition:

Total annual budgets are the total annual public sector budgets of the SAP customer (i.e. agency, institution, program or department) based on the current budget period.

List Price: US$ 5,625 per every US$100Million total annual budget


If you would like more information on other S/4 HANA licenses or would like an assessment to help choose the right license, fill this form or kindly write to us at info@kaartech.com


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Comments ( 2 )
  1. Peter
    October 5, 2018 at 11:07 pm

    About automotive: has dbm been enabled in S/4 hana?

  2. Project Resource Management
    April 22, 2019 at 3:06 pm

    Nice Blog wonderful sharing. I will definitely share in my group. Thanks for sharing.

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