Ownership 

Purpose

Ownership is an ownership management component designed to manage division order interests for producing properties and operating interests (gross working interests) for both producing and non-producing properties. Ownership is used to create the master data used throughout PRA. It provides a single source for ownership to support Revenue Distribution. SAP JVA is designed to manage joint interest billing. The SAP components are integrated and share both ventures and cost center assignments for linking revenues and expenses for custom or SAP-specific corporate reporting.

 

Ownership supports date-sensitive tracking of ownership, including a complete online ownership history, and the ability to link burden groups to specific working interest owners. It can also track unit property information.

 

It also includes mass data change processes that make possible changes across multiple division orders. The ownership transfer, provision change, suspend/suspense release owners, and division order approval are examples of mass change processes.

The ownership transfer process (see: Ownership Transfers (Transfer Requests)) in PRA can handle various scenarios of ownership change. It can be used to transfer interest from one owner to other owners. It creates a history for old owners, and handles burden group transfer automatically for the source and destination owners. It can also combine the owners based on combine criteria to allow division order consolidation. The combine process allows for an online simulation and review to reduce situations where ownership cannot combine automatically and allow you to adjust the combinability criteria as needed.

 

Ownership is integrated with the accounting processes necessary to transfer funds from suspense to pay, and from pay to suspense based on owner interest transfer requests and changes, or by direct funds-only transfer requests.

 

Ownership is integrated with all SAP PRA components, and as such, generates prior period notifications (PPNs) for changes that impact both Valuation and Contract Allocation processes, including automatic updates of marketing group changes, when necessary.

 

Ownership works on the concept of ‘checking out’ DOIs for maintenance, and ‘checking in’ DOIs for updating the data in the processing stream (see: DOI Check-In and Check-Out). That process controls when maintenance can be applied to the system without impacting work in progress from the other components.

 

The component also allows for a correction process outside of transferring ownership. This process can become vital to fix errors without impacting chain of title records or owner payments based on current ownership.

 

Ownership also contains functionality for:

·         Linking well completions and measurement points to division orders (see: Creating a DOI to MP/WC Cross-Reference).

·         Maintaining DOI revenue accounting rules (see: Defining Tax and Revenue Attributes for a DOI (DOI Accounting)).

·         Managing production payment balances (Maintaining Production Payment Information

·         Reviewing owner suspended balances (legal suspense balances, see: Displaying Outstanding Summary (Legal Suspense) Balances).