Explaining Price Protection and Price Fetch in SAP Agricultural Contract Management

SAP Agricultural Contract Management can retrieve the most recent market price for future/basis from either the SAP master data or an external service. If the price is fetched from an external service, SAP Agricultural Contract Management maintains a history table that records each request made to the service.

Additionally, users can manually override the fetched price and provide a mandatory reason code for the override (as shown in the example, alongside the manually overridden futures price). This ensures transparency and documentation of the reasons behind the manual override.

Furthermore, SAP Agricultural Contract Management can generate reports indicating whether a contract was priced manually or using the price fetch functionality. This reporting feature ensures better tracking and analysis of contract pricing methods.

The fetch price option is as simple as selecting the desired service and initiating the fetch process. On the other hand, the override functionality serves as a price lift, allowing users to adjust the fetched price based on negotiations or specific circumstances with their counterparties.

To have the price fetch call a different source for the futures price, other than the DCS, an enhancement needs to be mapped in BRFPlus.

Using the BRFPlus function /ACCGO/FN_CC06_GET_PFM, map the enhancement to the conditions and org structure that will use it. Once the enhancement is implemented, it can be used by all or you can map the enhancement to a specific organization or even material. This is an implementation discussion and decision per installation.

To generate a report, in the SAP menu, go to Agricultural Contract Management → Contract Management → Commodity Price Provider → On Demand Price Request Tracker. Alternatively, use transaction code /ACCGO/CAK_PRC_ODR.

The report will show the following information:

• The time a price fetch was requested for a specific condition
• The DCS/MIC and maturity code the price was requested for
• The person who made the request
• Whether the fetch was successful
• The message returned from the enhancement
• The price returned from the price fetch

To override a fetched price, in the SAP menu, go to Agricultural Contract Management → Contract Management → Commodity Price Provider → Analyze Reason for Override of Fetched Prices.

The result will show the following information:

• Whether a contract was priced using the price fetch
• Whether a contract was priced manually without a price fetch being called
• Whether a contract was priced manually after a price fetch was called
• The reason for the price override (where relevant)

Companies require the option to implement automatic price protection that will be added to futures prices. This feature allows end users to view the price protection, provided they have the appropriate authorization. However, they cannot make any changes to the price protection within the contract. The purpose of this functionality is to safeguard companies from market events that may take place after market closure or during weekends.

Price protection is only available for futures prices. It is designed for internal use, with authorization objects required to create, display, or change the price protection.

Price protection is configured in the BRFPlus table in SAP Agricultural Contract Management (BRFPlus rule CC02). It can be set up to expire at a specified date and time.