Understanding Retail Fuel Network Operations (RFNO...

DhananjaySingh · ‎2024 Jun 30

RFNO Process in S/4HANA

In this blog post, I will explain what Retail Fuel Network Operations (RFNO) in S/4HANA is, why to use this functionality, and how to set up RFNO in S/4HANA. I have shortened some of the parts as it was overflowing. I will explain a few of the key features in detail in an upcoming blog post.

What is Retail Fuel Network Operations (RFNO): RFNO is a SAP modules in Oil & Gas used by petrol station networks to monitor, control, and optimize all aspects of their operations. SAP S/4HANA Retail Fuel Network Operations (RFNO) supports all service station types, including COCO (company owned, company operated), CODO (company owned, dealer operated), DODO (dealer owned, dealer operated), and automatic service stations. RFNO integrates various processes of petrol stations, including payment handling, fuel inventory management, fleet card management, and lessee settlement, into a unified platform.

Why Retail Fuel Network Operations (RFNO): In S/4HANA Retail Fuel Network Operations (RFNO) offers powerful features designed to streamline and optimize the overall management of petrol station networks. I will explain the key functions of S/4HANA RFNO in detail:

Dealer Settlement: Dealer Settlement refers to the process of balancing and documenting all financial activities between the petrol station network and individual dealers. This ensures accurate and efficient financial transactions.

Daily Invoicing: Automates the invoicing process based on sales data, which reduces manual effort and errors.
Plausibility Checks: Conducts various checks to ensure data accuracy, such as validating sales figures and checking for discrepancies.
Flexible Settlement Options: Supports different settlement types including fixed leases, percentage leases, commissions, participation fees, and discounts.
Reporting: Provides detailed reports to both the company and the dealer, ensuring transparency and helping in strategic decision-making.

Fleet and Payment Card Handling: Fleet and Payment Card Handling is crucial for managing transactions made using fleet cards and other payment cards. This ensures secure, quick, and efficient processing.

Fleet Card Management:
- Transaction Settlement: Manages the financial transactions made using fleet cards.
- Card Impressions and PIN Administration: Issues and administers cards securely, including PIN handling.
- Blocking/Unblocking Cards: Provides functionalities to block lost or stolen cards and unblock them when necessary.
Payment Card Processing:
- Turnover Data Handling: Processes data from POS systems efficiently.
- Settlement with Clearing Houses: Ensures timely and accurate settlements with financial institutions.
- Monitoring and Comparison: Compares site data with issuer data to ensure consistency and accuracy.

Stock Management: Stock Management involves tracking and managing fuel and other product inventories at petrol stations. Efficient stock management ensures continuous operations and customer satisfaction.

Real-time Inventory Tracking: Monitors stock levels in real-time using data from tank dip and meter readings.
Automatic Reordering: Uses predefined thresholds and historical data to automate the reordering process.
Stock Adjustments: Performs necessary adjustments based on physical stock counts and meter readings.
Material Valuation: Assigns value to the inventory for accurate financial reporting.

Forecasting: Forecasting is the process of predicting future sales and inventory needs based on historical data, trends, and other variables.

Sales Forecasting: Uses historical sales data to predict future sales, helping in planning and resource allocation.
Demand Forecasting: Predicts future demand for products to ensure stock levels are optimized and customer needs are met.
Advanced Analytics: Employs advanced analytics and machine learning algorithms to enhance the accuracy of forecasts.

Fuel Demand Forecasting and Replenishment: Fuel Demand Forecasting and Replenishment focuses on predicting fuel demand and ensuring timely replenishment to avoid stockouts.

Demand Prediction: Uses historical data, market trends, and seasonality to predict fuel demand.
Replenishment Planning: Plans fuel deliveries to ensure optimal stock levels are maintained.
Automatic Reordering: Triggers reordering based on demand forecasts and current stock levels.
Vendor Management: Coordinates with suppliers to ensure timely fuel deliveries.

Fuels Pricing: Fuels Pricing involves setting the price for different types of fuels based on various factors such as market conditions, costs, and competition.

Dynamic Pricing: Adjusts fuel prices in real-time based on market conditions, competition, and demand.
Cost-plus Pricing: Sets prices based on the cost of procurement plus a predefined margin.
Promotional Pricing: Implements special pricing strategies during promotions or to increase market share.
Price Optimization: Uses analytics to determine the optimal pricing strategy to maximize profits.

Inventory Management: Inventory Management ensures that all products, including fuel, lubricants, and convenience store items, are adequately stocked and managed.

Stock Levels Monitoring: Keeps track of inventory levels in real-time.
Order Management: Manages orders and deliveries to maintain optimal stock levels.
Stock Adjustments: Regular adjustments based on physical counts and discrepancies.
Reporting and Analysis: Provides detailed reports on inventory levels, turnover rates, and stock movements.

Lessee Settlement: Lessee Settlement is a process in SAP S/4HANA Retail Fuel Network Operations (RFNO) that involves balancing and documenting all financial activities between the petrol station network and its lessees. This process ensures accurate financial transactions and efficient management of revenue generated from fuel sales and other services provided by the petrol stations. Some of the key features are as following:

Automated Daily Invoicing
Plausibility Checks
Flexible Settlement Options
Automated Daily Invoicing
Plausibility Checks
Flexible Settlement Options
Comprehensive Reporting

How to configure S/4HANA RFNO and set up key Master data:

Below are the high level set up of master data maintenance, inbound data processing, document handling, payment card management, business transaction determination, monitoring, reporting, archiving, and continuous replenishment.

Master Data Maintenance

Master data maintenance is crucial for the accurate functioning of the SAP S/4HANA RFNO system. Master data includes all critical business information such as partner data, product data, and equipment details.

Steps:

Define Partner Roles

Transaction Code: BP
Path: SAP Easy Access > Logistics > Central Functions > Master Data Synchronization > Business Partner > Create/Change/Display

Maintain Material Master

Transaction Code: MM01
Path: Logistics > Materials Management > Material Master > Material > Create (General) > Immediately

Define Equipment

Transaction Code: IE01
Path: Logistics > Plant Maintenance > Management of Technical Objects > Equipment > Create

Maintain Vendor Master

Transaction Code: XK01
Path: Logistics > Materials Management > Purchasing > Master Data > Vendor > Central > Create

Inbound Data Processing

Inbound data processing involves setting up the system to handle incoming data from various sources efficiently.

Steps:

Configure IDocs for Data Transfer

Transaction Code: WE20
Path: SAP Easy Access > Tools > ALE > ALE Administration > IDoc > Configuration of IDoc Processing

Define Logical Systems and Assign to Clients

Transaction Code: BD54
Path: SAP Easy Access > Tools > ALE > ALE Administration > Basic Settings > Logical Systems

Maintain Partner Profiles

Transaction Code: WE20
Path: SAP Easy Access > Tools > ALE > ALE Administration > IDoc > Partner Profiles

Setup ALE Distribution Model

Transaction Code: BD64
Path: SAP Easy Access > Tools > ALE > ALE Administration > Basic Settings > Distribution (ALE) > Maintain Distribution Model

RFNO Document with Processing of Documents

This involves configuring the system to handle RFNO documents efficiently.

Steps:

Configure Document Types

Transaction Code: OBA7
Path: IMG > Financial Accounting > Financial Accounting Global Settings > Document > Document Types > Define Document Types

Set Up Number Ranges for Documents

Transaction Code: FBN1
Path: IMG > Financial Accounting > Financial Accounting Global Settings > Document > Document Number Ranges > Define Document Number Ranges

Maintain Document Posting Rules

Transaction Code: OB41
Path: IMG > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Incoming Invoices/Credit Memos > Document Types

Payment Card Management

Payment card management involves setting up the system to handle and process payment card transactions.

Steps:

Define Payment Card Types

Transaction Code: SPRO
Path: IMG > Financial Supply Chain Management > Payment Card Processing > Basic Settings for Payment Card Processing > Define Payment Card Types

Configure Payment Card Processing

Transaction Code: SPRO
Path: IMG > Financial Supply Chain Management > Payment Card Processing > Basic Settings for Payment Card Processing > Payment Card Processing

Set Up Payment Card Authorization

Transaction Code: SPRO
Path: IMG > Financial Supply Chain Management > Payment Card Processing > Basic Settings for Payment Card Processing > Define Authorization for Payment Cards

Business Transaction Determination

Business transaction determination involves setting up the system to categorize and handle various business transactions.

Steps:

Define Business Transactions

Transaction Code: SPRO
Path: IMG > Financial Accounting > Financial Accounting Global Settings > Business Transactions > Define Business Transactions

Assign Transactions to Document Types

Transaction Code: OBEA
Path: IMG > Financial Accounting > Financial Accounting Global Settings > Document > Document Types > Define Document Types

Set Up Posting Rules for Transactions

Transaction Code: OBY6
Path: IMG > Financial Accounting > Financial Accounting Global Settings > Document > Define Posting Rules for Business Transactions

Monitoring Using the Network Operations Desk (NODe)

The Network Operations Desk (NODe) provides a centralized interface for monitoring network operations.

Steps:

Configure Monitoring Tools

Transaction Code: SPRO
Path: IMG > Plant Maintenance and Customer Service > Maintenance and Service Processing > Maintenance and Service Orders > Functions and Settings for Order Types > Monitor Order Processing

Set Up Alerts and Notifications

Transaction Code: SCOT
Path: SAP Easy Access > Tools > Business Communication > Communication Interface > SCOT

Define Monitoring Parameters

Transaction Code: RZ20
Path: SAP Easy Access > Tools > CCMS > Monitoring > Monitoring Configuration

Reporting Using Network Operations Reporting (NORe)

Network Operations Reporting (NORe) provides comprehensive reporting tools for network operations.

Steps:

Define Reporting Requirements

Transaction Code: SPRO
Path: IMG > Information Systems > Define Reporting Requirements

Set Up Data Sources for Reporting

Transaction Code: RSA1
Path: SAP Easy Access > BW > Administration > Data Warehousing Workbench

Create Reports and Dashboards

Transaction Code: RSRT
Path: SAP Easy Access > BW > Reporting > Report Designer

Continuous Station Replenishment (CSR)

Continuous Station Replenishment ensures that fuel stations are constantly stocked to meet customer demand.

Steps:

Configure Replenishment Parameters

Transaction Code: SPRO
Path: IMG > Logistics - General > Logistics Basic Data > Continuous Replenishment > Define Parameters

Set Up Automatic Reordering

Transaction Code: MD03
Path: SAP Easy Access > Logistics > Production > MRP > Planning > Single-Item, Multi-Level

Monitor Replenishment Levels

Transaction Code: MCBA
Path: SAP Easy Access > Logistics > Logistics Controlling > Inventory Controlling > Stock Analysis

Detailed Steps and Configuration for Lessee Settlement

Automated Daily Invoicing

Daily Invoicing automates the generation of invoices based on sales data. This feature reduces manual effort and minimizes errors, ensuring timely and accurate billing.

Configuration Steps:

Define Invoicing Parameters

Transaction Code: SPRO
Path: IMG > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Incoming Invoices/Credit Memos > Define Parameters

Set Up Invoicing Cycles

Transaction Code: FB75
Path: SAP Easy Access > Financial Accounting > Accounts Receivable > Document Entry > Credit Memo

Configure Invoice Formats

Transaction Code: OBF2
Path: IMG > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Incoming Invoices/Credit Memos > Invoice Formats

Plausibility Checks

Plausibility Checks ensure the accuracy of the data by validating sales figures and identifying discrepancies. These checks help maintain data integrity and reliability.

Configuration Steps:

Define Validation Rules

Transaction Code: OB28
Path: IMG > Financial Accounting > Financial Accounting Global Settings > Document > Document Number Ranges > Validation and Substitution

Set Up Automatic Validations

Transaction Code: OB23
Path: IMG > Financial Accounting > Financial Accounting Global Settings > Document > Document Number Ranges > Automatic Validations

Monitor Validation Results

Transaction Code: OB28
Path: SAP Easy Access > Financial Accounting > General Ledger > Periodic Processing > Closing > Perform Validations

Flexible Settlement Options

Flexible Settlement Options provide various methods to settle accounts with lessees, including fixed leases, percentage leases, commissions, participation fees, and discounts. This flexibility allows businesses to tailor settlements to different contractual agreements.

Configuration Steps:

Define Lease Types

Transaction Code: SPRO
Path: IMG > Real Estate Management > Contract > Define Lease Types

Configure Settlement Methods

Transaction Code: RECN
Path: SAP Easy Access > Real Estate Management > Contracts > Settlement

Set Up Discounts and Commissions

Transaction Code: VK11
Path: SAP Easy Access > Logistics > Sales and Distribution > Master Data > Conditions > Create

Comprehensive Reporting

Comprehensive Reporting provides detailed insights into the financial performance of each petrol station and the network as a whole. Reports can be customized to meet specific business requirements and provide actionable data for decision-making.

Configuration Steps:

Define Reporting Requirements

Transaction Code: SPRO
Path: IMG > Information Systems > Define Reporting Requirements

Set Up Data Sources for Reporting

Transaction Code: RSA1
Path: SAP Easy Access > BW > Administration > Data Warehousing Workbench

Create Custom Reports and Dashboards

Transaction Code: RSRT
Path: SAP Easy Access > BW > Reporting > Report Designer

I have tried to provide the high level details of S/4HANA RFNO starting with What is RFNO, Why to uses RFNO and How to configure RFNO.

Please check RFNO related Fiori app in the Fiori Apps library.