In the Oil & Gas industry, handling contracts, deliveries, and customer orders can get very complicated. SAP IS-Oil’s Marketing, Contracts, and Order Entry (MCOE) helps companies manage this process more smoothly. Let’s look at how it works — in simple terms with examples.
🔹 Contract Quantity Correction on Final Delivery
👉 Problem: Sometimes the quantity delivered doesn’t exactly match what was agreed in the contract.
👉 How MCOE helps: It automatically adjusts the final quantity using industry standards like ASTM.
✅ Example: If a customer ordered 1,000 liters of fuel but due to temperature differences the actual usable quantity is 995 liters, SAP makes the correction automatically.
🔹 Fast and Smart Sales Order Entry
👉 Problem: Sales teams waste time entering the same details again and again.
👉 How MCOE helps: It remembers the last order, suggests defaults, and speeds up the process.
✅ Example: If a gas station orders diesel every Monday, SAP will pre-fill details from the last order — sales reps just confirm and move on.
🔹 Automatic Supply Plant Determination
👉 Problem: Deliveries can get delayed if the main supply plant is out of stock.
👉 How MCOE helps: It picks the preferred plant and, if that’s unavailable, finds alternatives automatically.
✅ Example: If Plant A is empty, SAP will automatically route the order to Plant B or C, ensuring no delivery disruption.
🔹 Item Category Redetermination
👉 Problem: Sometimes products are delivered under different conditions (like consignment stock).
👉 How MCOE helps: It adjusts the item category automatically based on the situation.
✅ Example: If crude oil is stored at a customer site (consignment), SAP will recognize and adjust billing accordingly.
🔹 Call-Off Restricted to Contract
👉 Problem: Customers may try to order outside agreed contract terms.
👉 How MCOE helps: SAP can restrict or warn when orders go beyond contract terms (like products, quantities, payment terms).
✅ Example: If the contract is for 500 barrels/month and the customer orders 600, SAP blocks or alerts before confirming.
🔹 Customer Master Enhancements
👉 Problem: Wrong delivery addresses (ship-to vs sold-to) often cause confusion.
👉 How MCOE helps: It checks online and shows reports of valid ship-to/sold-to relationships.
✅ Example: If a customer tries to deliver to an unapproved warehouse, SAP stops it before the truck leaves.
🔹 New Information in Delivery Documents
👉 Problem: Logistics teams need details like truck numbers or alternate delivery points.
👉 How MCOE helps: SAP adds extra fields like bill of lading, truck number, origin, and destination.
✅ Example: If a delivery truck changes route due to road closures, the system updates the new destination automatically.
🔹 Multiple Ship-to in Contracts
👉 Problem: Many contracts need deliveries to multiple sites.
👉 How MCOE helps: You can define several ship-to partners in one contract and control who can get deliveries.
✅ Example: A refinery signs a contract to deliver fuel to 5 petrol stations — all managed under one master contract.
💡 In short:
SAP IS-Oil MCOE makes sure contracts, orders, and deliveries are managed without errors, delays, or surprises. It reduces manual work, avoids disputes, and keeps operations running smoothly.
At Rufouss, we specialize in helping Oil & Gas companies unlock these benefits with SAP IS-Oil testing during implementation.