Best Practice for oil & gas solution scope

[Former Member]

Dear all,

Hope everything is going well.

i have searched in SAP help portal for Oil&Gas best practice solution scope but i haven't found it.

Does anyone have it or have a website to download it?

i need the solution scope for the five modules ( FICO, MM, JVA, PS, PM).

Thanks in Advance.

Regards,

Nourhan Essam.

[Former Member · Accepted solution]

Hi,

I do not think there is any document related to "best practices". Standard SAP IS OIL processes are designed by SAP in accordance with most preferred practices followed by Oil companies. So you can take the standard SAP OI OIL functions as a best practice.

[Former Member]

Hi Nourhan,

Every Industry has specific business processes and the way it is handled so that bound to be the accepted practice for that industry. When it comes to SAP Solution, SAP has provided specific industry solutions by adhering to the industry best practices and that is the result why for example you will not find PRA, PSC module in any other industry other than Oil & Gas as these are relevant to handle specific processes for Production Revenue Accounting or Production Sharing Contracts.

So in case of Oil & Gas, Upstream, Downstream & Midstream companies have off course best practices.

You can check the following sites which will give you some information:

• http://download.pwc.com/ie/pubs/2013_driving_value_in_upstream_oil_and_gas.pdf
• Operational excellence: The imperative for oil and gas companies - Bain & Company

You can check some of my blogs that might give you some overview:

• http://scn.sap.com/community/oil-and-gas/blog/2015/04/27/upstream-industry-process-overview-sap-solu...

If you are asking about what are the general business requirement whenever we got to implement Upstream or Downstream or Midstream, I don't think that is documented anywhere and any repository available for that.

Moreover in this case Oil & Gas Industry is not exception, probably its hard to find details solution scope at least in public forums for any specific industry unless you have exposed to any implementation or solutioning.

Each industry itself is an ocean so far as respective business processes and sap solutions are concerned however some of the things will be common so in that way probably you might get an idea what would be the solution scope for example in a typical upstream implementation the scope of the modules would be FI (AP, GL, Cash & Bank, AA), CO (All modules except Product Costing & COPA, sometimes ML could be of use as client might want to see inventory value to be reported in different currencies), PRA (mostly all modules in scope), JVA (at full length), PSC (if government contract is related), SCM (standard MM, Logistics & RLM, Ariba, MDG etc. ), PS (Mostly AFE Solution for Capex & Opex and how to structure the Investment program, Project Scheduling, Forecasting etc.), SD (standard Sales & Distribution, Transfer Pricing ) etc.

So I would say first you can categorise what specific broad business processes are handled in these industry and than based on that you can think which module and functionality would be best fit to achieve that requirement.

Thank you very much.

Thanks & Regards

Subhasish

[Former Member]

Hi Subhasish,

I want to Thank you so much for your time.

Thanks for giving me all of these information.

I will check the links.

Sorry for interruption.

Best Regards,

Nourhan Essam.

[Former Member]

Hi Nourhan,

In case you want to understand about best practices from the management accounting perspective few examples will help you i.e. :

How to deal with the Seismic costs, G & A Costs, DD & A costs etc. (You can check the related blogs).

Thanks & Regards

Subhasish