An introduction to the SAP PSA module (Production Sharing Accounting) - Part 3 (to be continued...)

The key features of the SAP PSA module are:

• Automated cost recovery (full integration with JVA)
• Production allocation to (government) royalties and (contractor) costs
• Flexible entitlement calculations for all parties (government, contractor, venture partners)
• Production revenue pricing methodology
• Lifting and storage entitlement management
• Transfers & swaps handling
• Modelling planning scenarios (CO planning integration)
• Internal and external reporting, tracking capabilities

The process cycle is the following:

1. Cost Rollup (eg. from JVA to PSA)
2. Production volumes and pricing update
3. Adjustments
4. Actual Entitlement Calculation
5. Reporting

To be continued...