Hydrocardbon Prodcut Management (HPM) forms an integral part of the SAP Oil & Gas Downstream solution.
The component encompases :
- The Silo Management System
- Also called Tank Management System, this provides functionality for managing Physical Inventory in tanks by creating tank dips in the R/3 System, and comparing those inventories at any time with the book stocks. In that way, gains and losses can always be determined, and goods movements can be monitored.
- Quantity Conversion Interface (QCI)
- A flexible QCI that converts volumes, masses and energy at ambient conditions (temperature, pressure, vapor pressure, calorific value, density) into volumes, masses and energy values at standard conditions. In addition, the Quantity Conversion Interface calculates density and heating value at standard conditions.
- External programs for calculating complex oil volume correction factors (c-code routines of the American Petroleum Institute, customer-designed programs) and natural gas compression factors (c-code routines of the American Gas Association, customer-designed programs) can be integrated with the QCI.
- Tracking of two-step plant-to-plant transfers
- Which helps in the determination of profit and loss, and automatic posting of differences.
- An extension of Inventory Management
- This manages inventory in alternate Units of Measure which is very essential for the Oil & Gas Industry. Apart from Inventory Management, supporting functionalities like Material Movement Documents , Deliveries created from the Logistics Execution transactions etc are also extended.
For this to happen, it is important that customers using SAP Oil & Gas Industry solution purchase the license for the c-code routines from American Petroleum Institute (API) and / or American Gas Association (AGA) and QuantityWare(SAP middleware compliant solution for QCI). These routines DO NOT come with the SAP Oil & Gas solution.
QCI is integrated with various other downstream business processes like Transportation and Distribution (TD), Excise Duty Handling (TDP), Traders and Scheduler's Work Bench (TSW), Transportation Planning Interface (TPI) etc.
Added by Rahul Nayak:
Because the measured volume of an oil product is temperature-dependent, volume correction and density correction are required, because the density of material is defined as the relation between mass and volume.
For correcting volumes and density, in addition to the SAP Standard quantity conversion, there is an oil quantity conversion. It allows volumes at ambient temperature and densities at test temperature to be converted into densities, volumes and masses at standard temperature. The oil quantity conversion is thus used to convert the quantity of an oil product into various units of measure.