As part of EHP6, SAP added new capabilities for Upstream Oil and Gas companies to maintain the integrity of the production month throughout month-end processes such as JV Allocations and JV Cutback.
This is required functionality for Canadian Oil and Gas companies but is optional for US companies. Most US Oil and Gas companies that use SAP do not have this functionality activated, but in many cases only because they implemented SAP before the functionality was available.
For companies that migrated to SAP from oil and gas accounting systems such as Excalibur, Bolo, and others, this was functionality that they had in the past, but lost when they moved to SAP.
So why would an oil and gas company that already implemented SAP without this functionality want to activate it now? And is that even feasible?
How hard is it to activate the Production Month capability in SAP a/er already implementing SAP without it? Not hard at all! EAG recently worked with a US Upstream Oil and Gas client to activated the Production Month functionality as part of an upgrade from EHP5 to EHP7. The enre project, both the upgrade and turning on Production Month took about 6 months. The upgrade went live in 5 months with Production Month going live one month later.
Click here to read ‘Part 2’ of this topic, covering the top 4 reasons for activating this functionality.