What is primary product allocation processing in SAP IS-OIL-PRA-REV - Revenue?

SAP Term: primary product allocation processing

• Component: IS-OIL-PRA-REV

• Component Name: Revenue

• Description: An alloting of gas, oil, or condensate major products from sales points to the termination point. Primary products are processed in three allocation steps: allocation to marketing groups allocation to the contract level allocation from the contract level to working interest owners Five methods can be used to carry out the allocation: division order sales mostly used for oil networks, sales point originated mostly used for gas networks, manual entry equals production, manual entry unrestricted, and none usually used in simple plant functionality for a company that wants to skip primary product allocation.

Smart SAP Assistant

• Key Concepts: 
  Primary product allocation processing is a component of the SAP IS-OIL-PRA-REV Revenue Management module. It is used to allocate products to customers based on their contractual agreements. This process helps ensure that customers receive the correct products and quantities in a timely manner. 
  
  How to use it: 
  Primary product allocation processing is used to allocate products to customers based on their contractual agreements. This process involves creating a product allocation plan, which defines the products and quantities that should be allocated to each customer. The plan is then used to generate an order for each customer, which is then sent to the warehouse for fulfillment. 
  
  Tips & Tricks: 
  When creating a product allocation plan, it is important to consider the customer's contractual agreement and any other relevant factors such as delivery times and product availability. Additionally, it is important to ensure that the plan is updated regularly in order to reflect any changes in customer requirements or product availability. 
  
  Related Information: 
  Primary product allocation processing is part of the SAP IS-OIL-PRA-REV Revenue Management module, which also includes other components such as pricing, billing, and invoicing. Additionally, this process can be integrated with other SAP modules such as Materials Management and Sales & Distribution in order to streamline the process of allocating products to customers.