This post describes the requirement, process steps and implications of using method ‘CA Manual Allocation’ for US PRA(Production & Revenue Accounting) Contractual allocation(CA).
US PRA contractual allocation processing is critical prerequisite component of valuation, royalty and compliance reporting. Certain business requirements may necessitate usage of method ‘CA Manual Allocation’.
- PRA Production allocated Well completion volumes summarized at Measurement Point (MP) level not matching with CA Allocated corresponding volumes
- Interfaced/uploaded IN PRA Well completion volumes summarized at Measurement Point (MP) not matching with with CA Allocated corresponding volume
- Totals of Well, MP and Contract do Match between Production and Contractual Allocation
- Example of mentioned issue shown below with sample data of Production Allocation and Contractual Allocation Results’ comparison:
Certain US Oil & Gas Production Companies do mention the implication of this mismatch causes impact on MP(Measurement Point) level Transport Deductions and Royalty Pricing.
SAP recommended solution in such scenarios would be to use ‘CA Manual Allocation’ method with volume allocation results computed outside SAP system.
Standard SAP provided template can be filled with CA allocated manual data, followed by upload in SAP. Uploaded data is considered for subsequent process steps of valuation and Royalty computation.
‘CA Manual’ Enablement Process Steps:
|Download Well Volumes Report in Excel||Well Volume Production Report||O3U_WCDVL9|
|Use Existing Contract Volumes at MPs||Wet gas Contract Volumes||O3U_CA059|
|Use Existing SPF (Simple Plant Functionality Volumes at MPs||Residue & NGL (Natural Gas Liquids) Contract Volumes||O3U_CA079|
|Download ‘CA Manual Upload’ Template||Well level contract volumes/energy to be inserted in Template||O3U_CA039|
|Using Well volumes file and Contract Volume file as input insert contract column & respective volumes||Wet Gas CA Manual Upload File preparation||Manual Activity|
|Using Well volumes file, ascertain volume allocation factors for each well at specific MP||Volume allocation factor of a well, basis of Residue and NGL allocation for specific MP||Manual Activity|
|Using Well volumes file with allocation factor SPF file insert contract column & allocate respective Residue & NGL volumes for a well for specific MP||Residue & NGL CA Manual Upload File preparation||Manual Activity|
|Upload Prepared Wet Gas file and SPF File via CA Manual Tcode||Both Files same format, single file can also be used||O3U_CA039|
|Execute CA||CA Volume allocation to WI (Working Interest) owners||(/PRA/DN_WORKPLACE_P|
Prerequisites Of ‘CA Manual’ Execution
- Delivery Network Setting Change to ‘CA Manual’, Tcode–O3U_DND2
‘Tolerance percentage’ can be input based on business requirements.
|Business Realized Benefits Of Using ‘CA Manual’ File For Upload:|