Org Structure for O&G Upstream company

[hari_gutta]

SAP Community:

Topic #1

We are working with an Oil and Gas Exploration and Production (E&P) company who is using all of the relevant SAP modules.  Current Company Code Design is Legal Entity  = Company Code.  The client is currently undergoing a company code restructuring for various Legal / Tax reasons (e.g. Various Assets / Operations are being split, merged, and transferred to one or more new Legal Entities.)  With the current design, there is a requirement to create redundant cost objects in the new company codes.  Thus users are required to use new cost objects to record transactions subsequent to the reorganization resulting in negative implications on operations management and reporting.  As the company is expected to have similar reorganizations in the future.  We are looking to share with the client how others companies using SAP have addressed this issue.

Topic #2

A related problem is that the legal reorganization continues to make changes while the SAP solution is being designed, built, and tested, causing likely rework in the solution build and data areas. We are looking for methods and approaches how to create a flexible design and solution build accommodating legal entity changes during the course of the project.

[Former Member · Accepted solution]

I believe the challenges you mention are related to the alignment of cost center to a controlling area and the fact that the customer has aligned configuration of controlling areas to = company codes.  There is also the option in controlling configuration to allow multiple company codes to be attached to the same controlling area (with restrictions - see notes regarding configuring controlling area).  I have not tried this configuration to know whether this should work.