sap oil & gas finance forum | september 2013 | absoft limited
DESCRIPTION
Absoft is the UK’s leading independent provider of SAP solutions to the upstream oil & gas industry. We host regular forums to share best practice, ideas and expertise to make sure you are getting the most out of your SAP system. The event is aimed at giving upstream oil and gas businesses using SAP software an opportunity to share best practice and discuss challenges with experts in the field. Our finance forum is designed to allow Operators and Oilfield service companies using SAP to share in best practice and discuss finance issues which are common in upstream oil and gas, and at our latest event we covered topics: • Managing capital cost from WBS to fixed assets • BusinessObjects, Planning and Consolidation For more information please visit: www.absoft.co.ukTRANSCRIPT
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Agenda
Presentation 1 – Managing Capital Cost from WBS to Fixed Assets
Future Sessions
Introduction
Presentation 2 – BusinessObjects, Planning and Consolidation
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Future Sessions
Agenda
Presentation 1 – Managing Capital Cost from WBS to Fixed Assets
Introduction
Presentation 2 – BusinessObjects, Planning and Consolidation
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Time Item
13.00 Buffet Lunch
13.30 Introduction to ForumContextAimsPrevious Forums
13.40 Session Presentation:Managing Capital Cost from WBS to Fixed Assets (Tim Hatcher, Senior SAP Consultant)
14.10 Q&A
14.20 Teas, Coffee and Networking
14.30 Session Presentation:BusinessObjects, Planning and Consolidation (Jerry Fawcett, Principal Consultant)
15.00 Q&A
15.10 Future SessionsTopic SuggestionsAOB
15.20 Coffee and Networking
Agenda
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Agenda
Presentation 1 – Managing Capital Cost from WBS to Fixed Assets
Future Sessions
Introduction
Presentation 2 – BusinessObjects, Planning and Consolidation
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• Fire Alarm
• Assembly Point
• Fire Exits
• Restrooms
• Mobile Phones
• Please put on silent/vibrate
Health & Safety Information
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Introduction to Absoft
ISO 20000 (Service Management) & ISO 27001
High staff & client retention rates
140+ permanent employees
Founded in 1991
SAP experience since 1992
SAP consultancy practice
SAP Services, VAR & Business Analytics partner
Information Security Certified Nov ‘12
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• SAP Implementation
• SAP Consulting
• SAP Training
• SAP Support (Front & Back-office)
• SAP Infrastructure
• Data Migration
• ReadSoft
• BusinessObjects
Products & Services
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Oilfield Services Large E&P
O&G Manufacturing Small-Mid E&P
Oil & Gas Clients
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• Informal network for oil and gas organisations using SAP
• Share best practice use of SAP in the finance arena
• Foster discussion around potential solutions for common pain points
Aims
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• Forum not recognised or sponsored by SAP
• Forum is not intended to in any way compete SAP User Group
• http://www.sapusers.org/members/sigs.php?sig
• Calum Davidson – [email protected] for info
• Keen to extend reach of forum: open to all SAP using companies in oil and gas sector
• Absoft happy to act as co-ordinator – agenda/topics to be driven by participants
Context
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Agenda
Presentation 1 – Managing Capital Cost from WBS to Fixed Assets
Future Sessions
Introduction
Presentation 2 – BusinessObjects, Planning and Consolidation
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Management of Capital Costs From WBS to Fixed Assets
• Projects and Assets in Context• Work Breakdown Structure• Assets• Top Tips• Implementation Considerations
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Projects and Assets in Context
Investment Management – CAPEX and OPEX Programs
Project SystemsPlant
MaintenanceFixed Assets
Joint Venture Accounting
Cost Centre Accounting
Time Sheets
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Benefits – Investment Management
• Flexible Program structuring to suit any organisation design and changes through time
• Planning through the Program structure hierarchy, linking into Project Systems
• Appropriation request planning and authorisation, including the availability of workflow
• Budget control from the top of IM down to Project level
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Benefits – Project System
• Flexibility of Project structure and available functionality to meet any Project design and execution requirements
• Planning, executing, monitoring and control functionality to meet a wide range of requirements
• Integration into IM, MM, HR, PM, RE-FX, FI, CO to meet cross modular execution and reporting requirements
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Benefits – Asset Accounting
• Fixed Asset accounting structures and valuation methods to meet External and Internal Accounting requirements
• Integration to PS, PM, RE-FX, FI, CO for integrated processing and reporting
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Investment Management
• Investment Management • Functionality to support Organising, Planning,
Executing and Controlling organisations CAPEX and OPEX investments
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Project Systems
• Project Objects
• Project Definition – overall control parameters for the whole project
• Work Breakdown Structure – flexible structure to accommodate project planning and execution logic
• Network with Activities – detailed project planning and execution
• Work Centres – internal and external resources for project execution
• Milestones – logical points in project execution lifecycle
• Project Team – Internal and External Labour Resource
• Project Materials/ Bill of Materials/ Stock
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Project Systems
• Complex Project
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Project Systems
• Plan, Control and Manage Project Resources
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Project Systems
• Project Objects – Simple Project
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Assets Under Construction
• Assets that can be automatically created via a link with WBS elements
• Requires the WBS element to be an Account Assignment Element and for it to have a properly configured Investment Profile assigned
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System Demo
• Investment Management Structure
• Project Builder
• Asset Link to WBS Element/s
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Joint Venture Shares
• Manage Joint Venture expenditure via the Project Structure
• Gross expenditure project structure, cutback to partner shares
• Operator net share settled to AUC and then final asset/s
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Final Assets
• Joint Venture net share settled to AUC and Final Assets
• Asset Classes produced as a result of the Project –design decision based on Financial and Management Accounting Rules
• Depreciation Treatment according to Financial Accounting and Internal Accounting Rules
• Assets linked to Plant Maintenance, Cost Centre Accounting, RE-FX as appropriate
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Top Tips
• Aim for consistency in Project Structures –consistency builds efficiency and reduces risk –use Project Templates
• Consider Project Management (project activities) and Project Cost Management when agreeing project structures
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Top Tips
• Capture the right data – use the available PS objects – WBS elements, networks, network activities, materials, project resources, standard and custom fields – to enhance project execution
• Despite the ability to be flexible, keep the structures as simple as possible
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Top Tips
• Plan at the right level – SAP supports planning (budgeting) at various levels of the Project Structure and Investment Management structures
• Choose the planning level that gives a good level of detail without being onerous to maintain
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Top Tips
• Actively control spending through Budget Functionality and/ or active reporting
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Top Tips
• Used focussed reporting to manage the project pipeline
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Implementation Considerations
• How detailed do Project Structures need to be – consider WBS and Networks
• Business processes to manage the project – project structure, project statuses, dates, project resources, project financials
• Value of controls that could be implemented – Investment Management, Appropriation Requests, Plans, Budgets
• Could the annual budget cycle benefit from Investment Management for more structure and control
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Implementation Considerations
• What cost elements will be relevant for different types of projects
• What type of costs will be managed on Projects –CAPEX and/ or OPEX
• How to integrate into existing modules – e.g. PM, CCA, CATS
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Discussion
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Agenda
Presentation 1 – Managing Capital Cost from WBS to Fixed Assets
Future sessions
Introduction
Presentation 2 – BusinessObjects, Planning and Consolidation
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BPC – What Is It?
• To give it its full title:-
– SAP BusinessObjects Planning and Consolidation
• SAP’s go-to solution for planning and consolidation
– There are alternatives….
• BCS or EC-CS for consolidation
• BPS or IP for planning
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BPC in Oil & Gas
• CAPEX Planning Track capital expenditure from the approval process to post-approval commitment
• Budgeting and MonitoringManaging budgets from HQ across multiple subsidiaries and countries
• Strategic Long Range PlanningOil and gas companies are typically focussed on long range planning (5+ years)
• Driver based and Risk Adjusted PlanningOil and gas planning needs to adapt to fluctuating drivers like oil price and exchange rates
• Integrated Financial and Operational PlanningLink operational planning activities (acquisition, E&P, and abandonment planning) to financial planning, in order to represent them in financial terms
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Versions of the Product
• There are two versions of the product
– NetWeaver
• HANA option available
– Microsoft
• Fundamentally the same, but there are some differences
• SAP is committed to developing both versions
– HANA
– NetWeaver
– Microsoft
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SAP Solutions for EPM
SAP NetWeaver BWSAP Business
Suite Non-SAP sources and platforms
SAP BusinessObjects BI
InfoView / SAP Portal / Browsers / Enterprise Portals
Workspace/ UIMS Office
Harmonized Web User Interface / Common EPM Add-in
Financial Information Management
Planning and Consolidation
Profitability and Cost Management
Disclosure Management Financial Consolidation
Intercompany Strategy Management
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Streamlined planning and a faster, more compliant close
Unstructured Data
Business Process Management
Unified Platform
Automation and Reporting
SAP Business Planning and Consolidation
ERP LoB
CRM HR
Structured Data Flexible User Interface
Microsoft Office
Web Browser
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EPM Add-in for MS Office
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Streamlined planning and a faster, more compliant close
• Familiar and easy to use– Increased user adoption
– Reduced reliance on IT
– Designed for business users
• Process-centric– Configurable business process flows
– Drives process consistency
– User owned and managed
• Unified– Single, integrated solution
– Low maintenance, improved integrity
– Simplifies deployment
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Setup by IT - owned and managed by business users
IT Responsibility
• Hardware
• Security and authentication
– Users
– Roles
– Privileges
• Data and application Infrastructure
– Database server
– Application server
• OLAP structure
Business User Responsibility
• Application security
– Users
– Roles
– Privileges
• Hierarchies and roll-ups
• Report templates
• Excel, Word, PowerPoint templates
• Create and modify metrics and measures
CIO
€¥$
CFO
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BPC – Main Features
• Administration Client
– Models
– Dimensions
– Users/Security
– Business Rules
• Business Process Flows– Work flows to guide users through the steps they need to
perform
• Work Status– Secures slices of the database against
unauthorised/accidental changes
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System Demo
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BPC – Summary
• SAP’s flagship solution for planning and consolidation
– Owned by business rather then IT
– Addresses many planning/reporting/forecasting requirements
• Open architecture
– Data easily acquired from variety of sources
– Exposed to a variety of reporting tools, including Excel and BO
• Intuitive
– Web/Excel interface for data entry
– Business Process Flows to guide users through tasks
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Discussion
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Agenda
Presentation 1 – Managing Capital Cost from WBS to Fixed Assets
Future Sessions
Introduction
Presentation 2 – BusinessObjects, Planning and Consolidation