e-business suite 1 _ craig metters _ making oracle projects perform in santos.pdf

The most comprehensive Oracle applications & technology content under one roof The most comprehensive Oracle applications & technology content under one roof

Making Oracle Projects Perform in Santos

Craig Me)ers GLNG Finance Manager

The most comprehensive Oracle applications & technology content under one roof

Agenda •  Overview of GLNG and Oracle System •  Projects ReporAng •  MulA Currency •  Expenditure Control •  Manual Journals •  Project Tasks •  BudgeAng & ForecasAng •  Online Financial ReporAng


About GLNG •  GLNG (Gladstone Liquid Natural Gas) •  Joint Venture: Santos, PETRONAS, Total & KOGAS •  Signed LNG oRake contracts – US$120 billion (over 20 years)

•  Project cost – US$16 billion (2011 to 2014) •  5,000 jobs


Train 1

Train 2

Fairview Arcadia

Roma

ScoAa

Storage

Upstream Pipeline LNG Plant Shipping Customers

3rd party gas

PETRONAS

KOGAS

Central QLD to Gladstone 420 km


About GLNG

•  Coal Seam Gas wells •  420 km pipeline •  LNG plant on CurAs Island (Gladstone)

Injune

Roma Wallumbilla

Wandoan ScoAa

Taroom

Emerald

Gladstone

Fairview

Roma

Proposed Pipeline

GLNG JV acreage Other Santos acreage

50 Km

Arcadia


GLNG System ConfiguraAon

AP Invoices

Timesheets

Purchasing

Expenses

Journals

Inventory store issues

Oracle General Ledger

Oracle Projects

Cost Management System -‐ Kildrummy

Forecasts & Budgets

Santos Corporate Reporting

JV Financial Reporting

JV Project Reporting

Source of Transac>ons

1,500 GLNG Project Codes

8 Santos Companies

13 GLNG JVs

300,000 per year


Challenges

•  Making sense of 1,500+ Project Codes •  Producing JV Statements for 13 JVs •  Managing 13 JV Cash Calls in up to 3 currencies (AUD, USD, EUR)

•  Managing internal spend approvals •  ForecasAng and BudgeAng across life of project •  AccounAng V Project speak


Project ReporAng Dimensions Dimension Control Repor>ng Oracle

Joint Venture Ownership Control Project Level DFF Work Breakdown Structure Cost Control Project ClassificaAon Budget Line Items Budgetary Control Project ClassificaAon Department FuncAonal Control OrganisaAon Approval For Expenditure (AFE)

Approval Control Project ClassificaAon

Currency Funding Control Project Currency

Joint Venture

Work

Breakdo

wn

Structure

Budget Line Items

Departmen

t

Budget Line Items

Curren

cy

or or or …


Project Header

Joint Venture

•  Approval For Expenditure (AFE) •  Work Breakdown Structure •  Project Budget line item

Responsible Dept

Tracking Currency – AUD, USD, EUR


Project ClassificaAons

•  Unlimited number •  Best way to group projects •  Change make retrospecAve changes •  Need to configure for reporAng •  No logic needed in Project Number


Project Header

Tracking Currency – AUD, USD, EUR


MulA Currency in Projects

Projects tracks expenditure in USD and AUD •  Only AUD in PSI screen •  USD available from tables


MulA Currency in Projects

•  Projects track a different Project currency – USD

•  FuncAonal currency in Project & USD remains USD

•  AP will sAll process a FX variance on USD invoices back to AUD Projects and GL


Expenditure Control Santos Purchasing and Invoice Process •  Oracle Workflow approval at RequisiAon •  Receipt of PO can be done by anyone •  No invoice approval required Project Control Issue •  Anyone can raise and approve a requisiAon for any project •  Anyone can receipt a PO •  No opportunity for Project Control review Solu>ons •  Oracle Workflow modificaAon – not implemented •  Oracle TransacAon Controls – high maintenance


TransacAon Controls

TransacAon Controls


TransacAon Controls


Manual Journals •  Accounts love journals •  Auditors hate journals •  Large projects will be subject to audit •  Valid for allocaAons, correcAons, accruals •  Appropriate documentaAon and control – All accruals reverse next period –  Central documentaAon library – Approval process

•  Commitment accounAng issue


Manual Accruals & Commitment Tracking

Purchasing System

Order Raised $800

Receipted $640

Remaining Commitment

$160

General Ledger

$640

Manual Accrual $100

ITD Actuals $740

§  Adding remaining commitment to actuals will double count manual accruals -‐ $900 should be $800

§  Santos tracks commitments outside of Oracle Purchasing

$900


Use of Project Tasks

•  Project Controls wanted 1 project number for enAre GLNG and 1,500 tasks

•  No ClassificaAon funcAonality at Task level •  Poor ability to group tasks for reporAng •  Task is freeform for project managers to use

Project Number

Task Number Expenditure Type

Org / Dept


BudgeAng & ForecasAng

•  Oracle Projects created as needed throughout life of GLNG project

•  Impossible to store full budget in Oracle Projects – don’t know future number of Oracle Projects

•  Poor Oracle Projects forecasAng & budget funcAonality across 1,500 projects

•  Using Kildrummy


On-‐line Portal ReporAng


Summary •  ReporAng constraints / requirements •  Business cost control requirements •  Match to Oracle funcAonality •  High project complexity -‐ the more you need an Oracle soluAon

•  Accessibility of data -‐ Online Cost Control What next – USD FuncAonal Currency ReporAng!

? Ques>ons ?

e-business suite 1 _ craig metters _ making oracle projects perform in santos.pdf

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