In case you did not get a chance to see First Part, you can refer my blog : Functional Area Reporting Scenarios in Oil & Gas Industry – Part 1
For Second Part, you can refer my blog: Functional Area Reporting Scenarios in Oil & Gas Industry – Part 2
For Third Part, you can refer my blog: Functional Area Reporting Scenarios in Oil & Gas Industry – Part 3
In this Part, let me point out some information about the business scenario of No AFE Approval for Major Expense Work over and effort tracked & planned via work order from the perspective of Functional Area Reporting.
In Oil & Gas Industry, Workover is a common term or terminology used to mean the process of performing major maintenance or remedial treatments on an oil or gas well.
Work Over expenses can also be handled and planned via a Work order and approval is not required for the Work order.
Now let’s look at the points how to achieve this business scenario in SAP:
- Create Purchase Orders with the account assignment – Work order
- PM Work order need to be created with responsible Cost Center assigned (assuming well being worked-over, Functional Area representing “Work” assigned to Work order.
- Purchase order is created for tubing replacement and in this case committed cost will be available for reporting.
- Receive Goods / Services against PM Workorder – In this case Account Assignment will automatically post to G/L Accounts based on Material Group mapping with offset to GR/IR.
- Non-Purchase Order Invoices posted directly to Workorder – In this case G/L Accounts selected by Accounting Clerk with offset to Vendor.
- Labor Cost charged to workorder based on Time Entry – Actual Hours multiplied by the Actual Rates will be the result in this case.
- Month End Settlement – This settlement will be done to responsible Cost Center i.e. to Well / Completion being worked-over
- Run Cutback.
Now let’s know what are the SAP Modules involved to address the above scenario:
- Material Management
- Finance & Controlling
- Joint Venture
- Project System
- Plant Maintenance