SAP Commodity Management features
Commodity Physicals
Advanced commodity pricing engine
Integrate commodity pricing and calculation capabilities across purchase and sales orders, contracts, invoices, and settlement processes.
Define pricing formulas using a flexible, rules-based framework aligned to your business and market requirements.
Use centralized commodity market data as a single source of truth for consistency, accuracy, and transparency across transactions.
Expense management for commodity businesses
Centralize and govern your expense rule framework in a single, flexible model to ensure consistency, transparency, and control.
Automatically assign expenses to relevant documents across the process chain to ensure accurate and consistent financial tracking.
Adapt to changing business requirements with a fully flexible and configurable expense management approach.
Integrate expense data into reporting and analytics to gain clear visibility into cost drivers, compliance, and financial performance.
FX risk management for commodity businesses
Automatically determine commodity price exposure directly from physical documents, ensuring timely and accurate risk visibility.
Execute a fully automated hedging flow to reduce manual intervention and improve operational efficiency.
Support multiple hedging strategies, including accumulation, netting, and direct hedging, for diverse risk management approaches.
Utilize native integration with treasury and risk management systems for seamless processing and control across operations.
SAP Commodity Management, AI-assisted commodity work center
Generate contracts using natural language, accelerating contract creation while maintaining consistency and control.
Reduce manual effort and operational complexity with a highly automated framework that adapts across contract types.
Guide users with prefiltered, context-aware options to ensure accurate contract outcomes when inputs are incomplete or ambiguous.
SAP Agricultural Contract Management
Consolidate complex agricultural terms and conditions into a single source of truth, to govern commodity contracts and mitigate risk.
Support partial and differential pricing with fixed and unfixed prices, from contract to invoice.
Track delivered load details and apply them during contract application and settlement, with adjustments created automatically.
Commodity derivatives
Manage derivatives
Support a broad range of exchange-traded instruments, including futures and listed options, as well as OTC instruments.
Operate on centralized commodity market data to ensure consistent valuation, pricing, and risk assessment across instruments.
Integrate into valuation processes and accounting postings to ensure accurate financial representation and compliance.
Use the Derivative Contract Specification framework with position management to maintain control over derivative exposures.
Commodity derivative order and trade execution
Create and place hedge orders directly from physical documents, simplifying the transition from operational exposure to risk management.
Receive and process broker confirmations via FIX protocol messages to ensure fast, reliable, and standardized communication.
Automatically create corresponding hedge positions within your system, reducing manual effort and operational risk.
Feed hedge transactions directly into risk reporting to provide real-time visibility into exposure and hedging effectiveness.
Commodity hedge accounting
Enable IFRS 9–compliant cash flow hedge accounting to ensure regulatory adherence and financial transparency.
Support commodity swaps and commodity forwards to cover a wide range of hedging instruments.
Automate hedge accounting postings to reduce manual effort and operational risk.
Support fully automated on‑behalf‑of hedging scenarios to manage centralized risk strategies across entities.
Broker reconciliation for commodity derivatives
Automate reconciliation processes to investigate and resolve deviations with less human intervention.
Efficiently identify missing and erroneous trades and positions to decrease commodity risk exposure.
Support fast, efficient, and accurate commodity trade and position reconciliation with a standardized cloud solution.
Commodity risk analytics
Commodity risk analytics is key in assessing risk resulting from commodity transactions and enables timely hedging to protect margins
Gain a full view of commodity price risk exposure across both physical documents and derivative instruments.
Obtain a quantity-based overview of hedged and unhedged positions to clearly understand your current risk profile.
Value physical documents and derivative contracts against current market data using mark-to-market risk reports for accurate assessments.
Analyze trading performance with detailed profit and loss reporting to identify gains, losses, and key value drivers.