Overview from Oil business point of view

SAP Organizational Elements FI-CO-MM

SAP Organizational Elements FI-AM
SAP Organizational Elements JVA-CO
JVA Definitions from business vision
JVA Philosophy and accounting principles
JVA and other modules
JVA Master Data
JVA Actual Postings
JVA Closing


Chart of account links general and analytical accounting in following way:
Company code is assigned to one operational chart of account
Controlling area is assigned to one operational chart of account
Companies codes are associated to one controlling area, all of them assigned to
same chart of account
Accounts and cost objects are connected in following way:
In SAP, profit and loss can be (or not) defined in CO module: connection is done
when profit and loss accounts defined in FI module are created as cost element in CO
module
Once, accounts are created in CO, a cost object assignment (WBS, cost center, order,
etc.) is mandatory

Joint Operating Agreement is the standard way for treating specific subjects of
Upstream, which arise in joint venture
JOA is the agreement typically used for joint ventures participants in order to regulate
relationship among partners
A standard JOA includes following elements:
Objective Duration
Relation among contracts partners
Duties, Commitments and changes of operator
Role of Committee Operative
Programs and budget for controlling expenses AFEs and Cash Calls
Breach and abandonment
Disputes Resolution
Accounting procedures of JOA