B. SAP Integration

8/4/2019 B. SAP Integration

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SAP Integration


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Agenda

SAP R3 and Integration

The different modules


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3

Solutionintgre

Systmesouverts

Architectureclient/serveur

Destins tous les

typesd'activits

Multinational

Richessefonctionnelle

Unisup and Salsa are based on SAP R/3

SAP key points Key benefits

Single input

Sound,reliable data

Overall viewof the

process

Real time

Improvedsteering

Harmonisedprocesses

Commonlanguage

Shared data

Windows type ergonomics

Overall time saving

Integrated system

Single database

Commonapplication

Reporting

User-friendlysystem

SAP is used by more than 17500 companies over the world. All the petroleum

companies have chosen SAP. It enjoys the benefit of more than 20 yearsfeedback and is grounded on the best sectorial and industrial practices.


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Business coverage of the System

Delegationof

Authority Profiles System

authorisations

Maintenance

& Inspection *Maintenance

and inspection

Corrective maintenance Preventive maintenance Resource workload Historical events and reporting

PMSAP

Module

Procurement**

Materialsmanagement

Purchasing Stock movements Inventory management

MM

SAPModule

Finance

General Accounting Corporate and statutory

reporting Accounts Payable &

Receivable Treasury Fixed assets accounting

Finance FI-AASAP

Modules

Controlling Projectmanagement

Budget monitoring Commitment monitoring Timesheeting Controlling

CO/PSSAP

Modules

Cost control

* Unisup affiliates

** Unisup & Salsa affiliates V3

JV


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R/3Client / ServerABAP/4

WFWorkflow

ISMetier

solutions

MMMaterials

mgt.

HRRessources

Humaines

SDSales

PPProduction

QMQuality

assurance

PMMaintenance

Integratedsolution

Opensystems

Client/serverArchitecture

Destinedfor all types

of activity

Multinational

Rich in functions

The SAP R/3 modules

FIFinancial

ACCOUNTING

PSProject mgt

AAFixed assets

JVAJoint

Venture

COCostcontrol


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Company Code

Plant

Warehouse

Purchasing

Organisation

Definition of the SAP Structures

The system environment (all the structures, all the materialand financial flows of a company or group of companies are

defined at that level

The Controlling Area contains all the Cost Objects and thestructures used Analytical Accounting

Structural unit, whose role is to negotiate the generalpurchasing conditions with the vendors for one or more plantsso as to prepare purchasing contracts

The Plant is an operational unit, which takes care of all the

aspects around logistics (Independent on stock, purchasingmanagement, and permissions).

The Warehouse is a physical storage unit managed by thedivision.

Within a client, the Company Code is a legal independententity, which produces its own balance sheet and has its own

separate profit and loss statement

Client

Controlling Area


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Reservation by WOPurchase requisition

Manpowerhours

The ERP

Controlling

CO/PSFI/AA

Accounting

PMMaintenance

MMPurchasing /Stock

Invoices and Financial postingsOut of Commitment

Goods Receipts and

Invoices Receipt

Purchase requisitionOrder, Stock movement

JV accountingJVA

An event in one

domain impacts the

other domains

Integrated Business Flows - Link betweenFunctional Areas


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MM-FI-CO Integration - Integrated Business streams

Good Receipt Invoice ReceiptPurchase OrderPurchase

requisition

Generation ofthe commitment

Updating of thecommitment

GR/IR AccrualsPosting of the

invoice

Transfer of thecommitment to

actual

Update of theactual

Availability control if put in place

Logistics

flow

Controlling

flow

Accounting

flow

Data and flow

consistency is

maintained over the

time


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The Modules

MM Material Management - Purchasing

PM Plant Maintenance

FI FInancial Accounting

CO & PS COntrolling & Project System

AA Assets Accounting

JVA Joint Venture Accounting

The Core SAP Modules


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The MM module is used to :

Manage and optimize the purchasing and procurement

processes

Manage the Stocks

Manage logistics to the production sites

MM Material Management

Purchasing : The MM module


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Planning

PurchasingExternal procurement

InvoiceVerification

Stock management

Goods receipt

Goods issueStock transfers

Invoice receipt

Mgt. of storage

locations

Controlling, Accounting

MASTER

DATA

Material

Vendors

BoMs

(Procurementsources)

Users

Functions

Purchasing : The MM module


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Material &Resource

Requirement

Planning

Call forTender

Dispatch

VendorSelection

InvoicePayment

InvoiceVerification

Contracts

Purchase Orders

Goods Receipt

ServiceAcceptance

MM: Purchasing flow


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MM: the master data

Client

Plant

Warehouse

Common data

Plant-specificdata

Warehouse-specificdata

The master dataare depending on

the structure.They are stored at

different levels.


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Company view Payment methods

Collective account

Payment conditions

Purchasing view

Order currency

Payment conditions

Incoterms

General Data View

Number

Address

Telephone

Fax

Clientlevel

Purchasingorganisation

level

Company Codelevel0002

0001

00010001

0002

0002000300040003

001

Partner functions

view

Partner

functions

Bank view

Bank details

MM

FI

MM: e.g. Vendor Master data


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By the MRP

Purchaserequest

Necessary: Material or service

Date

Quantity

By a user

By PM

Purchasing Dept.

Call forTender

Order

Launch

Decentralised

purchaserMM: Purchase Request Flow


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Maintenance management: The PM module

PM Plant Maintenance

The PM module is used to follow-up the repair

actions on the production equipments.

It helps following up the material consumptions,

the time spent by time sheeting resources, the

timeline of the repair action.


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Plant Maintenance : Integration with the other modules

Integration with MM Material Reservation, Purchase requests generated through PM work orders

The order release validates the stock reservations and the purchaserequisitions

Integration with FI and CO

The work order is considered as an Internal order, therefore useable as areceiver cost object for maintenance purchases

Types of costs

Human resources based on activity types

Technical resources based on activity types

Stock consumption

Direct purchases

Services


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Financial Accounting : The FI module

FI Financial Accounting

The FI module is used to follow-up :

Accounts Payable : Vendor Accounting

Accounts Receivable : Vendor Accounting

General Ledger Accounting

Inventory Valuation


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Goods

Receipt

Invoice verification

Payment

Invoice withoutcommitment

(e.g. electricity)

Invoice posting

MM Module

FI Module

Purchase

Order

Invoice parking

Invoice

Receipt

Invoice with

commitment

(order)Order

Purchase

Request

Financial Accounting : Invoice Receipt process


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Posting of theinvoice

Receipt of a

goods item

EM/EF 408000

2400 2400

Vendor 401100EM/EF 408000

24002400

MM invoice (PAM activated: Purchase Account Management)

603-Stock variation

32xxxx Stock

24002400

This is the standard SAP posting scheme (for affiliates using MM)

602 Stock purchases

Accounting entries only for PAM affiliates

Inventory is reflected in Controlling

Financial Accounting : Invoice posting scheme


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Posting of theinvoice

Receipt of a

service

EM/EF 408000

2000 2000

Fournisseur 401100EM/EF 408000

MM invoice for a Service

605xxx Service purchases

Financial Accounting : Invoice posting scheme

2000 2000


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FI invoice

Parking: the parking operation creates NO posting in general ledger.

It is just an information or a memo posting

Posting : either using a parked invoice or directly entering an invoice

for posting.

Financial Accounting : Invoice process


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Thanks to the MM-FI Integration, most of the accountingentries related to inventory valuated postings are

automatically generated

The good in transit process has its own specific process.

The postings that still need to be done directly in FI are :

Depreciation on non moving stocks (automatic computaion in

MM, manual posting to be done in FI)

Scrapping and partial sales.

Financial Accounting : Inventory


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Controlling : The CO and PS modules

The CO and PS modules are used to monitor operational

costs, the overhead and projects costs.

CO-PS Controlling & Project System


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Cost Center

Cost Object for analytical postings, most of the time collecting

operational costs, generally the common costs that will be re-

allocated.

The cost centers are emptied :

by sending activity types (human and technical resources)

through additive costs (storage costs),through monthly allocation cycles

Important, the creation of a Cost object is never a minor event. It

has to be considered is relation to a structure change, an

operation to follow, a project phase, a field

Controlling : Vocabulary 1/6


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Work Breakdown Structure Element (WBSe)

Cost Object for analytical postings linked to a WBS project

The WBS can be an operating field or an asset, structured in WBSElements

This structure is done considering the requirements of both thetechnical and the corporate reporting

The WBS Elements are long lasting objects, most of the time onseveral years.

They are the final costs receivers

They have several statuses allowing different actions such asplanning, posting,

They are the receivers of the operational costs (activity,overhead, common costs) linked to production.



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Internal Order (just for information)

Cost Object used to track short lifecycle operations such as

maintenance action (PM work orders) or long lifecycle (asset

depreciations, large maintenance operations)

The internal orders are intermediate cost object in the cost settlement

cascade done each period end (whether they are statistical or not). They

are settled to Cost centers or WBS Elements each period.

This settlement is handled through settlement rules defined at he

same time as the order master.



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Cost elements

Primary Cost Elements = P&L G/L account of the FI Chart of account

Secondary Cost Elements = used for analytical postings only, to

transfer costs or revenues from one Cost object to another.

Activity Types

They are used to input activity quantities, in planning and actual, that willbe valuated at a given rate. T allows the transfer of quantifiable costsfrom a Sender Cost Center (provider) to a Receiver Cost Object(consumer)

The price is constant the hole year. The sender Cost Center is monthlyemptied by an actualization of the activity price, based on theconsumptions and the monthly variance.

Business Rule : For a giver Sender Cost Center, there can be ONLY ONEActivity type provided.



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Allocation cycles

They are used send costs from Cost centers to other Cost Objects,

based on the following criteria : Fixed amounts

Fixed percentages

Variable portions of costs on Cost elements

Statistical Key figures

All these criteria cannot be changed during the fiscal year in cumulativemode, because it will induce instability.

Statistical Key Figures Document

It is the documents linked to the SKF values.

It is a set of receiver values. It is the flexible way to change the allocation

cycles basis. It is the only possible variable parameter useable incumulative cycles.

Settlement rule

Mainly for Internal Orders (exists for WBS Elements, but should beused as WBS are final receivers). It contains the rules along which theinternal order will send its costs to receiver cost objects.



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Planning preparationAll the tasks related to collecting the information and values to plan

budget, costs and revenues.Tasks related to Cost follow-up and actual realizations

Planning

The support and collector of all the above actions

Budget

Approved expenses planning related to the effective funds

avalibility.

Additive Costs (used only in some affiliates)

Some overhead or common costs can be done through a complex

allocation scheme. The overhead origin is always held in a Cost

Center.



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WBS Project

CC1

IO2

WO1

WO2

IO1

30%

80%5%

100%

100%

CC2

CC3

100%

CC4

15%Fix costs

Timesheetbased

Analytical structure and allocations

70%


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The Cost Objects

Purchase request

Purchase order

Stock Movements

Invoices andAccounting postingswithout commitment

Labor hours

WBSelement Cost Center InternalOrder

Receiver Analytical Cost Objects

Upstream processes

Allocationcycles


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* K : A type of assignment on cost centre to be filled in on the itemin the purchase requisition or purchase order

Purchaserequisitions

Order Stockmovements

Invoices &accounting postingswithout commitment

Laborhours

Cost center(K)*

Fixed assetsWBSelement

Internalorder

Assignment

Settlement

Assignment on cost centers


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Laborhours

Cost Center Fixed assetsWBSelement

InternalOrder(F)*

* F : A type of assignment on internal order to be filled in on theitem in the purchase requisition or order

Assignment

Settlement

Assignment on Internal Orders


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Laborhours

Cost centre Fixed assets

WBSelement (P)*

Internalorder

* P : A type of assignment on WBS elementto be filled in on theitem in the purchase requisition or order

Assignment

Settlement

Only for CAPEX projects

Assignment on WBS Elements


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Order Stockconsumption

Invoices & accountingpostings

without commitment

Laborhours

Cost centre

Fixed assets(A)*

WBSelement (P)* Internalorder

* A : A type of assignment on Fixed assetacquired to be filled in onthe item in the purchase requisition or order

Assignment

DepreciationSettlement.

Assignment on Fixed Assets


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The AA module is used to monitor fixed assets (AA)

AA Asset Accounting

Finance Accounting: The AA module


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The AA module

In some affiliates, depending on its size (large Unisup and Salsaaffiliates) this module is integrated with the modules CO and PS

In that case, the Receiver of the Fixed assets information and,later, depreciations, is the WBS element (on CAPEX Structures)

The costs are settled monthly to an asset under construction (AuC)first, and then on final fixed assets at the Asset installation.


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c

MMPR/PO commitments

FIPS

Assignment

Settlement, Allocation cycles(order, activity)

Fixed asset

CATSTime sheets

(*) purchase requisition / purchase order

PM

CO

FI

PS FI AA Integration


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AA Module Assets Accounting

Capitalized expenditure : the investment process using PS

ProjectCreation

WBSe

Characteristics:

. Investment profile

. Linked to an AUC

. Linked to a fixed asset

at installation

. Definition of settlement

rules

Period-endclosing

Fixed AssetInstallation

Asset under ConsCA

Costs

Monthlysettlement

Asset in service

FinalSettlement

Posting of costs on theWBS element


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1 - Creation of a WBSelement (PS) - Creation of the AuC (link with AA)2 - Creation of purchase requisition (MM) and creation of commitment

3 - Creation of Purchase Order (MM) and transfer of commitment to (CO)

4 Good Receipt (MM)

6 Posting preparation (transfer from the expense account to AUC account) -after Cutback

7 Settlement in Fixed Asset

8 Definitive Fixed asset accounting, movements (AA)

9 - Depreciation (AA)

10 - Closing (AA)

The different steps towards capitalization


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The JVA module is used to monitor the accounting withthe Associate Partners

JVA Joint Venture Accounting

Finance Accounting: The JVA module


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Balancesheet

accounts(1 to 5)

P&Laccounts(6 to 7)

Secondary costelements Class 8

Primarycost

elements(6 to 7)

IntegrationJV(1 to 8)

FI CO/PS JVA

SAP JVA philosophy


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Running Operations Results

IO

or

WO

Cost Centers WBSOrdersObjects:

EX

TERNAL

EXPENDITURE

Personnel

Environt

DF

Appro

s

SI Drilling

DAP

DF

Procurt.

IS

Ope-ratedworks

100%

Non-opd

works

E%

Partners

E%

CAPEX /OPEX R

ECETTES

Group

E%CAPEX /

OPEX

Group

Non-opdworks

JVA

CUTBACK

Analytical posting flows


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The JVA module collects all the FI and CO posting among

Joint Ventures = AssociationAll the FI entries are linked to a Joint Venture through its cost object

Each Cost object (cost centre, WBS element, internal order) is assigned to only oneJoint Venture

Some postings and processing JVA specific also generate

FI and CO postingsCash Calls

The allocation of exchange currency differences to the relevant JV

Venture Bank Switching (VBA): verifies that the expenses have been effectively paidthrough the relevant JV (bank account linked to the JVs) and makes the necessaryfunds transfers cross-joint venture to correct if needed

Cutback: invoices the costs to each partners according to its % share in each JV

Netting: automatic clearing and posting of the balance in the partner accounts (Clientand Vendor accounts). Its clears cutback and cash-calls

Parent Company Overheads

SAP JVA philosophy

Master data Operational and Functional requirements


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Companycode 1

JOA *

3

The partners are created as Vendors and Customers

They are then linked to the JV in which they areassociatedJV partners 2

EquityGroup(s)

Relative equity shares of the JV partners

Operator equity share (TOTAL)

Funding Currency

3

Joint Venture(Field, platform, etc.

4

EquityType(s)

Mgt. Of the Equity Types in the JV

Capture of the Equity Group in the JOA

Validity Date of the equity type

Mgt. of the "Inter-company Venture"

Billing Currency

Activation

4

Cost Centers WBSe Internal orders

5

Cost ObjectsEach cost object must mandatory be linked to

a Joint Venture

a Recovery Indicator (RI)

an Equity Type

an Object type

RecoveryIndicator

B

Object type

A

Master data, Operational and Functional requirements

* Branch or Establishment


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JVA master data: some definitions

Each cost object is linked to:

The Joint Venture and an Equity Type (participation class)

The Recovery Indicator determines whether or not the costs received a this

Cost object can be re-invoiced or not to the partners (through the cutback)

BI Billable

CP Corporate

NB Non BillableCB Cutback (posting of partner invoicing)

the object type classifies a cost object as Capex or Opex (item of JVA reporting)

Class (JIB) code for JVA print management (details of costs invoiced,

invoicing to partners)

Sub-class A (JIBE) subcode, for managing JVA printing

(details of the costs invoiced, invoicing to partners

O P S h


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Operator as Partner Scheme

JV2o

JV1o

Common JV

Structure costs

Exploration of

license "A"

Common JV Operating JV

JV1c

JV2c

Exploration of

license "A"

Operation costs

of field "B"

JV contract ant

Sole JV

Sole costs

Sales

Billing to

partners

Operation costs

of field "B"

Non operated JV

Non operated activity

Depreciation

Billing from

partners

Assets

P

r

of

i

t

&

L

o

s

s

SalesDepreciation

Assets

100 % 100 % Quote-part

Operator as Operator Scheme


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Operator as Operator Scheme

JV2o

JV1o

Common JV

Structure costs

Billing to

partners

100 % 100 %

- Partner share

Exploration of

license "A"Assets

Non operated JV

Non operated activity

Sales

Depreciation

Sales

Depreciation

- Partner share

Operation costs

of field "B"

Sole JV

Sole costs

Common JV Activities

Billing from

partners

Assets

JV (Operator) share

Profit & Loss

B. SAP Integration

Documents

Transcript of B. SAP Integration