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
Use Existing Contract Volumes at MPs
Wet gas Contract Volumes
Use Existing SPF (Simple Plant Functionality Volumes at MPs
Residue & NGL (Natural Gas Liquids) Contract Volumes
Download ‘CA Manual Upload’ Template
Well level contract volumes/energy to be inserted in Template
Using Well volumes file and Contract Volume file as input insert contract column & respective volumes
Wet Gas CA Manual Upload File preparation
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
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
Upload Prepared Wet Gas file and SPF File via CA Manual Tcode
Both Files same format, single file can also be used
CA Volume allocation to WI (Working Interest) owners
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:
Quick file preparation in specified format for both current and PPN (Prior Period Notification) month processing.
Inbuilt validation checks on Energy/BTU/MCF calculations, during File Upload
Limit File upload authorization to specific users via role assignment
Flexibility to store generated file data in SAP Tables rather than via excel file.
Flexibility to modify generated via standard SAP Tcode
‘CA Manual’ is an SAP recommended solution, guided by certain business requirements
All configuration, validation checks meeting audit requirements in place to enable this solution.
Allocation Criterion used for volume split is as per customer discretion, can be volume based or energy value based.
Depending upon the Enhancement Pack/SP level, customer may have to implement certain SAP standard notes, provided for CA manual file upload Tcode
Customers can also design a custom program solution to automate the process of ‘CA Manual File Preparation’