Welcome to

Upstream Joint Venture Concepts

Concepts for Power Users

JVA-IT-008

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Introduction

Cellular phones & pagers

Facilities

Emergencies/ Fire Exits/ Evacuation

Breaks/ Refreshments

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 Module Purpose and Target Audience

Purpose: This course provides concepts, reference materials, and guidance to power users for
understanding ExxonMobil’s Upstream SAP design for Joint Venture Functionality

Course Objectives
• Understand the business factors that drive the configuration of EM Upstream SAP systems
• Understand the business logic and rules for how the JV module is used to achieve business
objectives
• Further prepare power users to independently resolve partner billing issues, and advise other
business users on approaches to new business situations

Course Duration;
Classroom - half day

Target Audience;
Power Users in the FI & JV Areas

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 Table of Contents
Course Agenda 5
Joint Venture Overview 7
Transactions 12
Master Data Concepts 24
Batch Processes 34
OBO 43
Reporting 45
Prior Period Equity Adjustments 49

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 Course Agenda
What will we cover in this course?

• JV Integration for postings

• Splitting Entries
• Deriving the venture
• Recovery Indicators and Manipulation Rules
• Key Configuration and Master Data concepts
• Choices in setting up a Venture
• Currency and Funding
• Billing Basis
• Batch Processes
• Netting
• Overheads
• Cutback
• Current Period Equity Adjustments
• VBA
• OBO
• Reporting
• Equity Adjustments
• Key Differences between IPES & NAPES

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 Agenda - continued
What will we not cover in this course?

• Detailed Process Explanations

• Accounting Entries
• PRA Processes
• XTO or IDEAS Processes

The class objective is to provide helpful information to enable a power

user to better support the business unit.
Look for these symbols in the pack:
Ref This is a link to a training pack, reference document or worksheet

Go-by This is a link to a desk document or real-life business case

Tip This is a bit of advice for a particular situation

Gotcha This is an example of what can go wrong, and what to do

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Unit 1: Joint Venture Overview

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 Introduction
Even ExxonMobil does not typically “go it alone”

• The oil extraction industry is extremely risky – so has always shared risk

JV processes are more than just allocations

• Multiple rules for billing: overheads, phases, suspense, currency, etc.

Oil & Gas continues to change

• Traditions have grown up, but Agreements are evolving:

"Billing" vs "Cash Call“ vs “Shareholding”
Recent global trend is toward incorporated ventures

• Resource owners are increasingly setting the rules for cost and revenue sharing, and
increasingly are operators themselves

EM needs SAP Power Users to keep up with the

complexity and the changes to support the business
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 Where do you start?

Operated Oil and Gas joint venture

• Cannot start until there is a JOA (Joint Operating Agreement)
• Once you have an agreement, start at the end
• Understand the REPORTING before doing any set up
• What costs are in or out?
• How should shared costs be presented?
• Summarized? Specific Tranches or Phases?
• What currencies? What codes?
• Understand data segregation and security requirements

Build from the EM template

• Multiple variations on similar themes already exit
• Create new or unique only where a clear requirement is documented

Go-by Sequence of steps to set up a new Project JV in NAPES

Coming soon

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 Process Overview
The Question Business Process Master Data/System Process
Why Bill? Partner Agreement JOA
Reporting
Who is being Billed? Partners Customers
Who is Billing? Relationships JV / RU
Equity Type
Equity Groups
IPES Project t
Ref
Whose Money? Currency House Bank raining for EM
Funding Currency OP
VBA Master Data
What is Billed? Operating Areas JV
Cost Objects IPES COE Ma
Ref ster Data slide
Business Activity RI s collection
PCO
Working Capital

When Billing? Activity Month Equity Types

How Billing? JV Accounting Cutback
Billing
Cash Call and True-up

Operator Costs JV Object Type

Reporting JIB/JIBE
PSA Mapping Rules
Can you prove it? Controls Reconciliation
Audit Support

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 Joint Venture Models
EXAMPLES Unconventional Conventional Offshore International Exploration International Production
Incorporation Unincorporated Unincorporated Incorporated Unincorporated
Bill vs Cash Call Bill Bill Cash Call Bill Ops, Call Projects
Specific reporting Well-level COPAS, local standard PSA PSA, Statutory , WP&B
Budgeting Balloting Annual Budget Program budget Annual Budget, plus balloting
Overhead Fixed % Fixed %, Recoverable Recoverable, but limited
Carry No No Yes Possible
Different terms by tranches No No Yes Possible
Currency Single Potentially Multiple Potentially Multiple Multiple Funding

Typical Systems challenges

• Full Venture Balance sheet: Set up new SAP company rather that new venture?
• Cash-based billing: Full MM process through payment is billable.
• Definition of expenditures: comply with GAAP?

What if definition does not meet EM GAAP assumptions? (e.g. capital vs expense)?
Tip
Can be done within JV, with use of "capital " flag on the JV Object (split into Project ,
Cost Object, and Internal order Type)

Ref Footprint of IPES and NAPES Affiliates

Coming soon

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Unit 2: Transactions

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 A Venture Posting
To post an entry, all you need is:
Company / Acct / Cost Object Each posting ends up in:
- What could be simpler? • WW-SL
• Dataflex > SEC
• Company (What Legal/Business Entity) • Functional Ledger
• Dataflex RU • Upstream BW
• Geography/Region • FI/CO Ledgers
• Trading Partner • GDW
• Account (“What”) • JV Ledger
• Expenditure / BalSheet And can also end up in:
• Secondary Cost Elements • PSA Ledger > Partners
• Billing Indicator • Statutory Ledger
• Statutory Reporting • Partner billings
• PSA and recovery derivation • JV interface
• Cost Object (“Why, Where”) • JIBLINK
• Profit Center • Intercompany
• FAD • INNET
• Business Area
• Joint Venture A SAP posting is:
• Equity Groups/Types 1% “accounting”
• Recovery Indicator
• PSA Codes
99% configuration/master data
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 IPES JV Integration
At posting time, “JV Integration” takes an FI posting, analyzes it, and then
posts it into the JV ledger with additional entries intended to ensure that a
JV balances to zero for funding purposes.

Tip A JV was not intended to balance from a true 'trial balance perspective'
or ensure that business areas balance within a JV

CO Document
FI Document FR-SL BW

WW-SL Dataflex
JV Document
PSA $$ Recovery
Splitting
Balancing

JV Integrator Gotcha Looking only at FI docs to explain WW-SL reporting

may overlook splits to a non-reported JV

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 NAPES JV Integration
At posting time, “JV Integration” takes an FI posting, analyzes it, and then
posts it into the JV ledger with additional entries intended to ensure that a
JV balances to zero for funding purposes.

Tip A JV was not intended to balance from a true 'trial balance perspective'
or ensure that business areas balance within a JV

CO Document
FR-SL BW
FI Document
WW-SL Dataflex
JV Document
JIBLINK $$ Recovery
Splitting
Balancing

JV Integrator

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 Integration Concepts

Splitting vs balancing vs switching

• Splitting matches the balance sheet items with the corresponding

expenditures (e.g. one invoice, two expenditure lines to 2 JVs)

• Balancing posts to interventure suspense accts in order to keep DR

&CRs equal within a JV

• "switching" is the concept of when one venture/funding group owes

another; the concept is built into logic that selects and lists documents
and calculates the amounts that need to be posted into VBA interim
bank accounts (grouped by currency, type of switch, funding group)

Tip Balancing is only used in IPES to check the accuracy of the VBA process

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 Deriving a Venture - IPES
After hitting “save” on a FI transaction, the JV integrator follows this logic:
1. Is this a clearing? YES > get the venture from the original postings, else
2. Is there a cost object on the entry? YES > get the venture from the cost object, else
3. Check the substitution rules:
a. Is the account in ZOACCTVAL? YES > assign the corporate CC /venture, else
b. Is the account in ZBANKSTMTCC? YES > assign the designated CC /venture, else
c. Is the plant/valuation type in in T8JD? YES > assign the cost object /venture, else
4. Check the balance sheet accts automatically split by JV:
a. Reconciliation Accts (Vendor, Customer…)? YES > get the venture from the offsetting
entries and split if necessary, else
b. Purchase Tax Accts (Witholding, VAT….)? YES > get the venture and split from
offsetting entries, else
c. GRIR Account? YES > get the venture and split from offsetting entries, else
d. RXD (910 accounts)? YES > get the venture and spit from offsetting entries, else
e. Small differences from clearing, price, MM exchange? YES > as above, else
5. Check the JV tables that force splitting
a. Is the acct in T8JBS? YES > get the venture and split from offsetting entries, else
b. Is the bank (911) acct in T8JB? YES > get the funding group from the table, and the
split from offsetting entries, else
6. Check if ZOACCTVAL validation is on:
a. If Default Venture allowed, or ZOACCTVAL not used? YES > use default venture, else
b. ERROR! Go back and put a cost object on the entry!
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 Deriving a Venture - NAPES
After hitting “save” on a FI transaction, the JV integrator follows this logic:
1. Is this a clearing? YES > get the venture from the original postings, else
2. Is there a cost object on the entry? YES > get the venture from the cost object, else
3. Check the substitution rules:
a. Balance sheet substitutions? YES > assign the cost object /venture,
b. Is the plant/valuation type in in T8JD? YES > assign the cost object /venture, else
4. Check the balance sheet accts automatically split by JV:
a. Reconciliation Accts (Vendor, Customer…)? YES > get the venture from the offsetting
entries and split if necessary, else
b. Purchase Tax Accts (Witholding, VAT….)? YES > get the venture and split from
offsetting entries, else
c. GRIR Account? YES > get the venture and split from offsetting entries, else
d. RXD (910 accounts)? YES > get the venture and spit from offsetting entries, else
e. Small differences from clearing, price, MM exchange? YES > as above, else
5. Check the JV tables that force splitting
a. Is the acct in T8JBS? YES > get the venture and split from offsetting entries, else
b. Is the bank (911) acct in T8JB? YES > get the funding group from the table, and the
split from offsetting entries, else
6. Use Default Venture

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 Getting to Co/Acct/CostObj
Transaction Account
Posting Type Company (not offset) Cost Object

Basic FI manual entry

includes FI Invoices Manually entered Manually Entered Manually Entered

MM movements Derived from Plant Mat/Svc Valuation class receipts: PO or SES

Movement Type or derived from Plant
issues: receiver

PM postings Derived from Equipment PO or SES Equipment or FuncLoc

Activity type (labor)
Intercompany Charge
through Interface Specified in file Mapped or suspended Mapped or suspended
Default

Bank Interface posting Derived from House Bank Bank Code Substituted from
Bank Movement Key ZBANKSTMTCC

Asset Posting Derived from Asset Asset Movement Key Cost Center on Asset

Other variations exist on these themes. Thoughts to retain are:

- MANY entries are 2 or 3 steps removed from JV set-up
- All users assume config is correct, and don’t think in terms of JV or recoverability

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 Examples
Takeaway thoughts:
• some splits we ‘control’, we can force splits or prevent them
• do not assume that “SAP does it that way”
Post an invoice
FI JV
Expense JV1 50 split from offset Expense JV1 50
Expense JV2 50 because vendor ("auto") Expense JV2 50
Vendor blank (100) Vendor JV1 (50)
Vendor JV2 (50)

Clear the invoice

split from original
FI because clearing JV
Vendor Blank 100 Vendor JV1 50
cash blank (100) Vendor JV2 50
cash JV1 (50)
split from offset because T8JB cash JV2 (50)

Clear Interco Charge

FI JV
Expense JV1 50 manual Expense JV1 50
Expense JV2 50 manual Expense JV2 50
I/C Vendor Corp (100) ZOACCTVAL overwrite split I/C Vendor Corp (100)

Ref
JV transaction examples similar to the above with venture derivation
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 JV Substitute Cost Object
In IPES Certain processes substitute a CC even though a Venture is derived

• UXD / RXD batch processes

• Substitute Cost Object from JV Master is only used when not available on
source line item
• Because EM is sensitive to Forex, we ensure the appropriate business area
absorbs the Forex by introducing a substitute by BA.
• Table ZBACC shows the Cost Center derived by RU/BA

• VBA
• VBA has a setting to “post using ventures”, which substitutes the Cost Object on
the JV Master

• If the Venture changes phase (e.g. from Development to Production), be sure to

Gotcha
change the Substitute Cost Object on the JV

NAPES does not have Substitute CC on Joint Ventures

• A CO Line Item substitution provides the same functionality

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 Recovery Indicators

Financial postings derive RI from cost objects UNLESS there is a specific reason
to derive RI from Account or Doctype (CO movements use Manipulation rules)

Overriding RIs on cost objects is discouraged. A business process that continually requires use of
Tip posting key 4Z/5Z to override the recovery indicator needs to be corrected.

System
checks in
reverse
order and
stops SKB1
when an
RI derived
T030

Ref Recovery Indicator Differences between IPES and NAPES

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 Manipulation Rules
Manipulation rules determine the RIs on CO/PS cost movements (allocations, settlements).
NAPES generally uses one ruleset for CO and one for PS. IPES uses 2 rulesets for all:

Pre-cutback (0001): Rule used to allocate costs that can be potentially be billable

Post-cutback (0002): Rule used to settle balances after cutback

Manipulation r
Ref
ule examples

Defined in allocation cycles and settlement rules of Orders and WBS

elements
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 Do’s and Don’ts: Acct & CostObj
Account and Cost Object are most common drivers of RI

• Don’t overuse Account RI overrides, stick with the standard model

• We would only default an RI for something we DON’T bill
• Account RI defaults are in SKB1
• Do let the Cost Object drive the RI

Go-by JVPSA review template used by U/S SAP Projects for latest (EG)

Cost Object drives partners for expenditures

• Do use Equity groups and validity dates to determine who partners are
• Do not set up separate cost objects to drive partner participation

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 Learnings from Clearings

• When Realized Forex is generated because clearing across Business Areas

(FI process), there will be a split because separate Business Areas are
typically in separate JVs

• When clearing an old balance sheet item, it will clear with the original equity
group with which it posted. If executed, Pre-cutback equity change will take
this out of the old equity group and repost it in the current equity group. Not
understanding the full process can result in billing and receivables from the
wrong partners

• Clearing many lines on an account and reposting the balance to the same
account may retain the same splits as the original clearings and can result in
very complicated JV documents
Tip In general, clear in smaller groups with the same Financial attributes
B.Area, Profit Center, TP

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Unit 3: Master Data Concepts

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 RU versus JV
Legal Entity = SAP Company

Legal Entity with Head Office + Branch Office = 2 SAP Companies

• Assumes that HO + Branch are separate EM Reporting Units

Legal Entity with one Operator and multiple PSAs = ??

One Operator for multiple EM Legal Entities = ??

Evaluate the trade-offs in each situation:

• What are legal/contractual requirements?
• Are there security implications?

RU is more costly, but more secure, and “cleaner”

JV is quicker and cheaper, but requires more monitoring and reconciliation

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 Partners & Relationships
EM OBO Partners
• Handled same in IPES and NAPES (but called AICCs in NAPES)
• Table T8JI
• IOs, CCs, WBSs, Assets all maintained in separate tables

Operating Companies
• Standard examples:
RU 2667 Indonesia
RU 4910 US

• Creative situations:
RU 2099 – Germany: EMPG
• Custom cutback and billing to handle complexity of statutory and JOA needs
RU 0076 – Canada: Hibernia
• Special Cutback program that cuts back non-billable items
RU 7100 – PNG: GLOCO
• Uses non standard Cutback mapping to meet reporting needs
RU NNPC – Nigeria: NNPC
• Creates a 3rd party Trial Balance for Government partner

Creative solutions always come at an increased user and IT maintenance cost

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 Currency and Funding
Funding questions boil down to:
• Can the operator intermingle the venture funds with his own funds?
• Are there separate funding 'pots' to be kept separate, similar to 'fund
accounting'
• What currencies are to be tracked and billed?

Transaction currency is not “tracked” or summarized unless it is also a funding currency.

Gotcha
Only local and group currency are retained through settlements and allocations.If you
need to cash call or bill/report a given currency, call it a funding currency on the venture

Notes:
• EM prefers to bill in the functional currency of the RU
• Realized forex typically billable, and is billed on the 95 accounts
• If cash is billed, it is on the interim 911 accounts (except 911x0)

Tip VBA is only helpful where

- JV and Corporate activities are in the same RU
- venture funds are contractually required to be separate

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 Cutback Currency and Funding
Q: What determines the Cutback Currency?

A: The document currency of the posting, the funding currencies for

the Joint Venture, and the default billing currency for the RU.

The Rules:
• JV must have a funding currency, and RU must have a default billing currency
• Funding currency and default billing currency will be local currency unless
specifically designated otherwise
• All cutback will be in default billing currency unless the document currency is
also a funding currency. In that case, documents in the funding currency will be
cut back in the funding currency.
• JV can have multiple funding currencies. Documents in funding currencies will
always cut back in the funding currency. Any documents in currencies other
than funding currency will be cut back in the default billing currency.

Ref Cheatsheet for looking up Default and Funding currencies

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 Billing Basis
EM typically works either on Expenditure or Cash Based Billing
• Other models are minor variations
"Bank State ment
Event Account Expenditure based Invoice based Cash based basis"
GR Goods Receipt
DR EXP BI BI BI BI
CR - GR/IR NB BI BI BI
Normal JV: BI seen in JV ledger only
IR Invoice Receipt
DR GR/IR NB BI BI BI
CR - AP NB NB BI BI

Pay Vendor
DR AP NB NB BI BI
CR - 911*4 NB NB NB BI
substitution in JV
Bank Statement
DR 911*4 NB NB NB BI
CR - 911*0 NB NB NB NB

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 Working Capital
Expenditure basis, bill Inventory, and that is all.

Principle of fairness… Billing WC is closer to cash basis, also incorporate

taxes, receivables, accruals, not just purchases/expenditures

Complications come from when working capital needs to be split, and the
basis is difficult to determine
- Receipt or other basis is incorrect or not yet known, e.g. BS to BS movt
- Example: withholding tax is on one line (service), but not on another

Where working capital billed, and where invoices coded to a PMWO, we

lose the billability of the AP entry for the payable (design limitiation)

NAPES not yet set up to bill working capital. Need to analyze the
substitutions and revisit GL Master data (RIs on accounts)

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 JV Cost Object Type

• JV Object Types are assigned to each cost object (CC, IO, WBS) along with Venture,
Equity Type, and Recovery Indicator

• SAP programmed regional functionality into JV, and JV object type is where some
regional settings are used

• Only the North America Region can use the settings pertaining to Overhead, Payroll
Burden and Carried Interest Penalties. Only those combinations that we intend for
use are set up in the system.

• A very useful setting that EM his just begun to use is the Project vs AFE billing level
that determines whether the Project or a designated WBS level appears on the JIB.

Ref JV Cost Object reference information

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Unit 4: Batch Processes

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 JV Process Flow

As needed As needed As needed As needed

Manage JV Maintain Create Prior Period

Partners JOA and JV Cost Object JV Equity
Master Data Master data Adjustment

During the During the During the During the

month month month month
Record Record Process
Perform
Operated Non-operated Non-operated
Cash Call
Cash Call Cash Call Billings (OBO)
Forecast

Month-end Month-end Month-end Month-end Month-end Month-end Month-end

Cutback to
Maintain and Current Period Reconcile and Process JV Execute
Corporate and
* Process Process JV Equity Issue Partner Venture Bank JV
JV Partners
Nettings Overheads Billings (JIB) Acctg (VBA) Reports
Adjustment Positions (CB)
(PCO)

Note: * Not a month-end process but is performed at month-end

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 Netting
Done at month end, but post in next period

• Convenience netting
• EMOP – NAPES only
• Partner’s (customer) share of revenue from revenue interface
• less that partner’s (customer) share of expense from cutback
• If credit balance: clear to a partner vendor account
• Partner needs to be set up for convenience nettings

• Partner netting
• EMOP – NAPES only
• Cleans up open items that build up over time
• Compare to IPES where CB and CC Offset build in an BF account

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 PCO vs Burden & Overhead
SAP programmed JV to exist within 3 Regional settings
• US, Canada, International
• Some functionality available only in US or Canada regional processing

Payroll Burden and Overhead only used in Canada and US

- % of designated charges billed to JV
- Payroll Burden based on set of Salary and wage cost elements
- Overhead predominantly based on wellcounts for production overhead

Parent Company Overhead Tab not available in US JOAs

- Stepped rate recovery of OH based on expenditures
- GL account sets + Cost Object Sets (one set by Business Area)
- New alternative is set up different JOA by Business Area
- Accounting is set by JV
- Default is to charge PCO into original cost object for BI charge
- Standard PCO was originally set up for local currency, now has USD in ECC6
- Custom programs provide enhancements for USD and override

Ref COE Training pack on IPES PCO

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 Current Period Equity Change
Brings all charges in the current period to the current active equity group

Part of Month-end close steps for NAPES

• Scheduled to run multiple times because of suspense process

• Audit Adjustment exclusion based upon RI

Run as needed in IPES

Future Plans for IPES

• When IPES is eventually on a batch scheduled process,
will add as a monthly recurring step as in NAPES
• Audit exclusions will need to be addressed
– however will also require adjustment to accommodate
Prior Period Equity changes

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 Cutback
Cutback is designed to calculate partners share of Billable costs and
book the appropriate receivable in the funding currency

• EM share = Billiable (BI) cost less amount charged (cut back, CB) to partner
• For justified exceptions, EM share is billed to a non-operating EM partner

Cutback is run for the current period only

• If a billable entry was posted in current month after cutback, but month-end still
in progress, re-run Cutback. The program will pick up and post the delta
• If a billable entry was posted in previous month after cutback, and detected in
the current month:
 Repost billable in current month with same document date
 Run cutback for current month
 Reverse the billable document in current month

Tip Cutback documents cannot be reversed due to validation on CB doc type.

If accidentally reversed, need to re-post billable and run cutback again

Ref COE Training pack on Cutback

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 Cutback Account Mapping
Booking Element IPES NAPES

Primary self 056xxx

Secondary 059xxx 059xxx

Balance Sheet
(OIs and autopost) xxx771 xxx771
Other Balsheet self* self*

* Some exceptions with specific cutbacks

Difference between IPES and NAPES on primary accounts is due to historical

differences in reporting strategy
• IPES made RI available within the CO/PS Reports, while NAPES predecessor did not.
• Cutback mapping provided same reporting ability

Ref
Cutback mapping tables
Coming soon

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 Cutback DOs and DON’Ts
DO:

Avoid close issues by running checks

• IPES: ZORZZ0053 / 55 (Mapping check report/utility) included in close steps
Future Plans for NAPES
After upgrade, planning to add to NAPES
• Run cutback in test mode before month end
• Limitation is that SCEs are not usually available until late in process

IPES: Investigate Cutback Recon Control Report ZORZZ0046 differences

Note: manual entries to cutback acct will throw off Recon report, protected by YFACCT

DON’T:

NAPES: Don’t run cutback early (dependencies for suspense & equity change)

Close Cost Objects and Accounts pre-maturely

• Be careful of balance sheet open items (e.g. vendor retention)

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 Venture Bank Accounting
Activating VBA essentially provides these functions/options
• House bank derivation
• Funding Group is required
• Interventure switch (on posting)

From a booking perspective, VBA is the batch process that analyzes all
documents and generates the 911x2 interventure funding postings at month end

Ref Skill Center training pack specific to VBA for Indonesia

Ref IPES Project JV Switching whitepaper

Go-by Nigeria Desk Document for VBA

Be careful paying company cash call where VBA activated

Gotcha Need to route payment through 901199003 to avoid switch

CORPPAY recovery indicators - T8JJ

Gotcha NV vs NB "same" for non-VBA, but different for VBA company
NV is seen as CORP ONLY for switch purposes

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Unit 5: OBO

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 OBO
Joint Venture vs Equity company

• OBO JVs = book and pay the invoice

• Equity companies = Fund the company and book the investment

Automation
• Billing file
• SAP Standard is EDI, uses JIB/JIBE and EDI tables for Cost
Objects/Properties
 Facilitated by JIBLINK in North America
• Custom Programs, e.g.:
 JOBAN (UK) – IPES
Ref IPES Project training p
 Prudhoe Bay – NAPES ack for OBO
 JIBLINK
• Journal Uploads Payment process chan
• Mapping tables
Go-by ge for NAPES

• Payment
• Credit to Vendor account, paid automatically
• Automated bank draft for Prudhoe Bay

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Unit 5: Reporting

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 EMOP Cash Calls
NAPES
• Automated cash call based on 6 month historical expenditures
• Includes threshold checking (over $100K)
• Cash calls are specifically booked NET to partners

IPES
• Manual off-line calculation
• Booked GROSS into Cash call transaction that splits by Equity group working
interest

EM cash call is not booked in FI, however recognized in JV billing ledger

when Gross cash call is booked (IPES only)
• Booked as cash paid, merely a reporting item on cash statement

Cash statement shows ‘theoretical’ cah paid for EM, do not use JV
Gotcha statements to reconcile actual EM cash paid. Reconcile EM cash
payments offline

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 Reporting
JV Reporting is primarily about Billing or Expenditure reports

• Where “true billing” occurs, reports and files are typically generated out of JV Ledgers
• Mapping occurs at report runtime
• Custom ABAPs
• Files/reports from JIBLINK system in NAPES

• SAP Standard is JIB/JIBE mapping

• Allows for config by Company
• NAPES basic config based on COPAS, IPES basic config based set up by country

• From Tier 2 IPES is essentially Expenditure based reporting, based on the PSA
• Mapping occurs at posting into PSA ledger (realtime)
• Custom ABAPs
• Report Painters

Tip USE Excel for reformatting, not for mapping and off-book adjustments

PSA based reports are based on sets of codes. If you do not maintain reporting
Gotcha sets for new codes, your expenditure reports will be wrong. Periodically
reconcile the overall PSA data to the expenditure report
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 JIB & Cash Statements
JIB = Joint Interest Bill
• “please pay $xxx” based on detail reflected on the bill
• use of JIB for IPES PSA reports is a misnomer

JIB includes use of Billing Indicators, which drives partner receivable

reporting and partner receivable account activity

1: Cash Call Request

2: Cash Call Payment
24: Cash Call Offset
6: Expenditure cutback
90: Netting

Cash Statement included in the JIB in NAPES

Cash Statement is separate report in IPES (ZJ2F)

Receivable aging is included in Controls reports

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Unit 5: Prior Period Equity Adjustments

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 Prior Period Equity Adjustment
Whenever a partner in an EMOP venture sold their share to a 3rd party, or
there was a farm-in, or EM took over a partner’s share, updating the
historical data to reflect the new ownership is a complex process with
SAP standard tools.
Ref
Old Prior Period Equity Adjustment process

As a result of affiliate feedback through the UFSN, EM invested in a

custom utility to assist in the prior period equity adjustment (ZOEA)
• Utility includes specific tools to map, download, then upload to the JV ledger
the net or gross effect of the change
• Utility was built to allow flexibility for the multiple potential scenarios
Ref Training package used for preparing testers of the PPEA utility

Go-by Indonesia PPEA Scenario

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Questions and Answers

IPES/NAPES
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 Congratulations!

Thank you for your participation in

Upstream Joint Venture Concepts

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IPES/NAPES