0302 JVA Pertamina May 2007

8/3/2019 0302 JVA Pertamina May 2007

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Oil and Gas IndustryUpstream Solution Joint Venture Accounting

V.Muthukumaran

GPU Oil & Gas APJ

SAP Consulting


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SAP AG 2007

Oil & Gas Solution Map 2005 Po w er ed b y SAP N e t W ea v e

r

Suppliers & Partners Customers &Channels

Exploration &Appraisal

Development& Production

HydrocarbonSupply & GasTransmission

Refining &Manufacturing

PrimaryDistribution

TerminalManagement

SecondaryDistribution

CommercialSales &

Retailing

U p s t r e a m

Exploration & Appraisal

E&P Contract ManagementField DevelopmentLiquid & Gas ProductionAllocation & Settlement

Oil Field Service and Repair OperationsSupply, Transmiss ion & Trading

Bulk Supply Chain Planning & OptimizationBulk Supply Chain Operations & SchedulingBulk Supply Chain Execution & SettlementBulk Supply Chain Reporting & AnalyticsPhysical Oil & Gas Commodity Trading

Oil & Gas Paper Trading & Risk Management

Ref in ing &

M a n u f a c t u r i n gRefining OperationsLubes Manufacturing

OperationsD o w n s t r e a m M a r k e t i n g &

Reta i l ingMarketing Planning & Execution

Sales Planning & Account ManagementOpportunity to CashCustomer Service

Terminal ManagementBulk Transportation Planning & Execution

Service Station Fuel ManagementConvenience Retailing

Asset ManagementEnterprise Asset Management

Ente rp r i se Management & Suppor tAnalytics

FinancialsHuman Capital Management

Corporate ServicesOperations Support

U p s t r e a m


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SAP AG 2007

In the capital-intensive Upstream Oil and Gas Industry, operators

need the tools which enable them to make informed decisions in the

effective management of their operations.

SAP for Oil & Gas offers a comprehensive solution to meet these

demanding challenges, providing a premier enterprise solution that

has been enhanced and refined for upstream businesses.The SAP for Oil & Gas Upstream solution

components are specifically designed to meet the

demanding needs of upstream businesses,

providing integrated processes and tools so you

can manage your business better.

SAP for Oi l & Gas Upst ream


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U p st r e a m So l ut i o n Po r t f o l i o

Produc t ion &Revenue

A c c o u n t i n g

RemoteL o g i s t i c s

Managemen t

J o i n tVen tu re

A c c o u n t i n g

Produc t ionShar ing

A c c o u n t i n g

Upstream Midstream Refining PrimaryDistribution

SecondaryDistribution

Service Station &Convenience

Retailing

x A p pIn t eg ra t ed

E & P


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SAP AG 2007

SAP JVA is the only SAP solution that allows you to track venture

expenditures on a venture by venture and partner by partner basis.

SAP JVA is fully integrated with:

Financial Accounting (SAP FI)

Controlling (SAP CO)

Asset Management (SAP AM)Materials Management (SAP MM)

Production Planning (SAP PP)

Plant Maintenance (SAP PM)

Project System (SAP PS)

allowing you to capture all joint venture transactions by usingstandard SAP functions.

The result is a streamlined workflow and reductions in errors.

Why SAP J VA?


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SAP AG 2007

Using proven SAP FI-Special Ledger functionality as its basis, SAP

JVA ensures accurate calculations and reporting of venture activities

on a venture-by-venture basis.

SAP JVA supports joint audit data exchange (JADE) reports, online

and in real time, reducing audit headcount, time, and expense.

SAP JVA ensures full compliance with all standard overhead

methods and calculations (US and international).

SAP JVA provides complete drill down capabilities for reporting all

ventures, all authorization for expenditures (AFEs) tied to JOA's,

overhead analysis, cutback, and billing.

Why SAP J VA?


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SAP AG 2007

Detailed joint venture data capture in real time

Cash calls to/from partners

Partner billing for venture expenses and revenues

Overhead calculation, based on the Joint Operating Agreement

Allocations of billable and non-billable costs

Multi-currency processing

Farm-in/farm-out and equity changes

Real-time gross/net venture reporting

SAP J VA Feat ures and Benef i t s


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JVA Bus iness Objec t s : Ven tu re

EG3

C75 % 25%

Venture A

EG4

EG1

33 1/3

EQTYPE 1Engineering

Design

EG6

B25%

A25 %

C25 %

D

EG2

25%

BA

50 %D

25 %

EG5

EQTYPE 2Construction

EQTYPE 3Production

B

A33 1/3

C33 1/3

33 1/3

B

A

33 1/3C

33 1/333 1/3

25%BA

50 %C

25 %

25 %

A

2002

2003

2004

Ventures associateEquity Types and Equity

Groups to define a specificjoint operation or purpose


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SAP AG 2007

.

A

EG3

C75 % 25%

Venture A

EG1

33 1/3

EQTYPE 1

EG2

25%BA

50 %D

25 %

Valid

EQTYPE 2

Construction

EQTYPE 3

Production

B

A33 1/3

C

33 1/333 1/3

33 1/3

3

EG4

EG5

B

A

C

33 1/333 1/

25%BA

50 %D

25 %

EG6

B25%

A25 %

C

25 %

D

25 %

A

EG3

C75 % 25%

Venture A

EG1

33 1/3

EQTYPE 1Engineering

Design

EG2

25%BA

50 %

D25 %

Valid

EQTYPE 2

ConstructionEQTYPE 3

Production

B

A33 1/3

C

33 1/333 1/3

3

EG5

B

A33 1/3

C

33 1/333 1/

EG4

25%BA

50 %

C25 %

EG6

B25%

A25 %

C25 %

D

25 %

New Processing Plant

Design

J o i n t Ve n t u r e I n t e g r a t i o n w i t h Co s t Ob j e c t s

A

A

Cost centre

Project

Construction Project


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SAP AG 2007

Cost Center

PM Order

Internal Order

Project Prod Order

VentureAsset Plant

1 2

J o i n t Ve n t u r e I n t e g r a t i o n w i t h Co s t O bj e c t s


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SAP AG 2007

Cost ObjectCost Object

Jo in t Ven tu re Cod ing for Cos t Ob jec t

ProductionOrder

NetworkOrder

PlantMaintenance

Order

Project Cost centre Internal Order

Joint Venture

Equity Type

Recovery Indicator

JV Object Type

JIB/JIBE Class

JIB/JIBE Subclass A


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SAP AG 2007

Recovery Ind ica t o r

Identifies category of a joint venture transaction

Indicates whether a particular revenue or expense is shared byventure partnersUsed to select data for reporting to venture partnersUsed to distinguish between joint and own revenues andexpenditures

Recovery indicator assignment & determination:

Default(Corporate)

Cost Object

G/L Account &

Cost Element

Document Type

User Entry

MMCOFI


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SAP AG 2007

J o i n t Ve nt u r e I nt e g r at i o n a n d I n t e r f a c e

AccountingInterface

SpecialLedger

Interface

AM

MMFI

PS

CO

SD

HR

PM

Accounting Document

Itm Account Cost Obj. Amount

1 Vendor -117.502 Cost 1 CC-1 60.003 Cost 2 CC-2 40.004 Tax 17.50

JV Interface

Joint Venture DocumentJoint Venture Document

Itm Account Cost Obj. AmountVenture EqG RI

1 Vendor CC-1 - 70.50JVI001 A01 BI1 Vendor CC-2 - 47.00JVI002 A01 BI2 Cost 1 CC-1 60.00JVI001 A01 BI3 Cost 2 CC-2 40.00JVI002 A01 BI4 Tax CC-1 10.50JVI001 A01 BI4 Tax CC-2 7.00JVI002 A01 BI

JV DATAJVT01

BILLINGJVT02

CUSTOMDATABASE

FI DATAGLT0

PP


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SAP AG 2007

Asset Master

J o i n t Ve n t u r e As s e t Po s t i n g - Ex a m p l e

Vendor Invoice

JVA derives venture coding for an asset using the costcentre entered on the asset master record

Asset Document

JV Document


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SAP AG 2007

Goods Receipt

J o i n t Ve n t u r e M a t e r i al Po s t i n g - Ex a m p l e

MM Assignments

JVA derives venture coding for material movements from a special stock cost object that is assigned toa plant and a valuation type (which is optional) associated with the plant.

Accounting Doc

Material Document

JV Document

JV Document


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SAP AG 2007

J o i n t Ve n t u r e Ve n d or I n v o i c e Po s t i n g - Ex a m p l e

Post Vendor Invoice

Accounting Doc

The expenses are assigned to the JV partners via the cost centre assigned to the expense line items

JV Document

Cost Centre Assignment


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Per iod ic Processes

Foreign Currency Valuation

Cost Transfers

Cost Allocation & Settlement

Overhead Calculations (PCO)

Equity Adjustments

Cutback

Joint Venture Close

Partner Netting Final Settlement

Corporate Close

Billing


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SAP AG 2007

A s s es s m e n t s & Di s t r i b u t i o n s

Cost allocations are based on R/3 CO functions with JVA required enhancements,including:

Substitution of the recovery indicator (recovery indicator manipulation)

Allocation of secondary costsRe-run of settlement

Cost Object B

Materials

Mail & CarriageTelecoms

Entertaining

12Hotels

8Travelling

Repairs & Servicing

Vehicles

Light & Heating

Rent & Rates

Staff Salaries80External Labour

40Internal Labour

140Total

Distribution (through original cost element)Internal CO only

Cost Object B

140Assessment A

Materials


Entertaining

Hotels

Travelling

Repairs & Servicing

Vehicles

Light & Heating

Rent & Rates

Staff SalariesExternal Labour

Internal Labour

140Total

Allocation (via secondary cost element)Internal CO only

Cost Object A

- 350Assessment A

Materials


Entertaining

30Hotels

20Travelling

Repairs & Servicing

Vehicles

Light & Heating

Rent & Rates

Staff Salaries200External Labour

100Internal Labour

0Total

40%

Unallocated Costs

40%


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SAP AG 2007

Farm-In / Farm-OutA partner joins or leaves a venture

RedeterminationPartner shares are adjusted to reflect changes in business conditions, such as reserves

Funding Currency ChangeA funding currency is added or removed from a venture

Current and prior period equity adjustments handled

Equi ty Changes & Adjus tm en t s


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SAP AG 2007

Suspense Proc ess ing

Suspense functionality supported for:Partner SuspenseEquity Group Suspense

Project/WBS Element Suspense

Specific costs are not charged to a venture but instead posted tosuspense accounts for the duration (year & period) a project remainsin suspense

Selection

GBU1Company Code

Venture J V 0 0 0 1 J V 9 9 9 9to

Project Suspense

Posting

2 0 0 2Fiscal Year

1 2Period

3 1 . 1 2 . 2 0 0 2Posting Date

Options

Test run

Set project in suspense Post Costs

Accounting DocumentAccounting Document

Itm Account Cost Obj. Amount1 O'head Admin - 50.002 O'head CC-1 50.00


Itm Account Cost Obj. AmountVenture EqG RI1 O'Head Admin - 50.00C00001 A01 NB2 O'Head CC-1 50.00JVI001 A01 BI


Itm Account Cost Obj. AmountVenture EqG RI1 O'Head Admin - 50.00C00001 A01 NB2 O'Head CC-1 50.00JVI001 A01 BI3 O'Head CC-1 0JVI001 A01 BS

JVA Project Suspense


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SAP AG 2007

Overheads

International Parent company overhead

US/Canada Well related allocations

OverheadCost

Stepped Rate Rule

1%

2%

5%GBP 10 000

GBP 0

GBP 250 000

GBP 10 000 GBP 500

GBP 140 000 GBP 2 800


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SAP AG 2007

Cutback

Venture A

EG2

Company Code50 % Partner B

25 %

Partner D25 %

AR / AP

Partner D25

ET1

AR / AP

Partner B25

Gross

Net

The cutback processallocates JV partners'expenses or revenues

according to theirworking interest ownership.

OperatingExp / Rev

50

OperatingExp / Rev100

Cut back Process ing

RI = BillCost Object

Venture A


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SAP AG 2007

Cash Cal l Process i ng

Equivalent to down payments or pre paymentsCan be issued for future months (Reclassification)Request and cash receipts carried forward to billing processIntegrated with Accounts Receivable and Accounts Payable

Venture JV0001 EqG A01 FCurr NOK

Partner FCurr Amt Lcurr Amt

JVGBU1 600.00 46.74

JV5001 300.00 23.37

JV5101 100.00 7.79

Partner Shares

Cash Call Request:

FI

Document

Cash Call

Gross to venture/project

Net to venture/project/partner

AccountsRec.- Cash

CallsPartner A

600Accounts

Rec.- Cash

CallsPartner B

300

AccountsRec.- Cash

CallsPartner C

100


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SAP AG 2007

JV BillingLedger

Billing

JV Integration Mgr.

Statement

Exp. Suppl

ExpenditureDetail

Inv. SupplDetail

Invoice

Jo in t Ven tu re B i l l i ng

InternalAllocations

Costs

Orders

PayrollVendor

Invoices

AccountsReceivable

JV SummaryLedger

Cutback

JV Integration Mgr.

Cash Calls

Paid CashCalls

PartnerPayments

CutbackInvoice

PartnerAdjustments

JV Billing creates

various customizedbilling documents tosend to your JVpartners

JV Integration Mgr.


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SAP AG 2007

COTo Affiliate:

INVOICE

FI

A/P

FIDocument

Cash Call

Affiliated Inter-Company Setup

Cutback creates A/P entriesto operator on the books ofthe affiliated partner asconfigured in SAP JVA andSAP FI

Gross cash calls create A/Pentries on the books of theaffiliated partner, as

defined in configuring SAPJVA and SAP FI

In ter-Company Ventures

Cutback

IntercompanyProcessing

Cash Calls


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SAP AG 2007

JV Par t ne r Aud i t in g

Gross billable/all by venture/account

Gross billable/all by cost objectGross billable/partner net by cost object

Gross billable/all by cost object foreign currency

Gross billable/partner net for JIB

Remaining cutback by cost object

Posted suspense overviewGross non-operated by cost object

Venture/equity group/billing indicator

Partner/billing indicator

Standard JVA Reports:

Billing Reconciliation Extract:

Reconciliation

Ledger 4B and 4DJVA BillingBalances

Ledger 4A and 4CJVA Balances

Statement

Exp. Suppl

ExpenditureDetail

Inv. SupplDetail

Invoice


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SAP AG 2007

Online transaction for incoming invoices for non-operated venturesInput forms, defined in JVA configuration, control the layout of the input screens

Input form includes the SAP coding block information (account, cost object,asset)

Incoming cash calls are handled with the cash call functions

Non-operated venture processing is fully integrated with SAPaccounts payable functions

Non-Opera t ing Vent ures

InvoiceInvoiceD a t a E n t r y

T r a n s a c t i o n

Cash CallCash Call C a s

h C a l l

T r a n s a

c t i o n

R/3

AccountsPayable

Non-operatingnet share


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SAP AG 2007

Main Features

Balanced books by ventureVenture specific bank accounts v. central disbursement account

Funding currency defined for each venture

Bank reconciliation and switching

Exchange differences for each venture

Cash and Banki ng


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SAP AG 2007

Provides an accurate accounting and reporting tool, with real-

time information on any partner or ventureFlexibility to handle business changes retroactive equity

change handling, flexible master data and customizing

Full integration with SAP core processes provides:

highly automated JVA processingease of use for users

full document drill-down & tracking, historical data and audittrail

End-to-end integrated business process coverage ensures:

streamlined cash call and joint interest billing processesgreater efficiency in billing partners- shortening the cash flowcycle

faster month end closing and financial reporting at lower cost

SAP J VA Business Benef i t s


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SAP AG 2007

And the bottom line result is:

increased customer/partner satisfaction with fewerincorrect billings

lower administration costs time savings with greater

automation

timeliness of information faster period end reporting,greater ability to meet reporting deadlines

auditability SAP standards for storage and retrieval of

historical data with full tracking of documents

SAP J VA Business Benef i t s


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SAP AG 2007

Thank You


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SAP AG 2007

Our routines are undoubtedly more efficient and theaccuracy of our accounting has increased since westarted using SAP Joint Venture Accounting (JVA).Where previously it could take two days to produce amonthly statement of accounts, it now takes half that

time and the data is of a much higher quality.Obviously, this means considerable cost savings forStatoil.

Kjell-Petter GiljeStatoil ASA

Statoil ASA is one of the worldslargest offshore oil and gascompanies, and has substantialinternational operations. Statoilhas a presence in 28 countries,and is one of the worlds largestnet sellers of crude oil. Thecompany plays a leading role onthe Norwegian continental shelf.As either producer or operator itis involved in 20 oil and gasfields, totalling 150 licences.Statoil has been a publicly listedcompany since 2001.

St a t o il s av e s t i m e a n d m o n e y w i t h SA Ps J o i n t Ven t u r e

A c c o u n t i n gwww.statoil.com

Su c c e ss St o r y: St a t o il , N or w a y

S A P f o r

O i l &

G a s
http://www.statoil.com/http://www.statoil.com/


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SAP AG 2007

Some o f ou r J VA Cus tom ers

0302 JVA Pertamina May 2007

Documents

Transcript of 0302 JVA Pertamina May 2007