In the oil and gas industry, managing Production Revenue Accounting (PRA) data efficiently has always been a significant challenge. Historically, companies running on SAP have been reluctant to archive their PRA data due to the inability to update transactions once they are archived.
This hesitation has led to vast amounts of data accumulating in their databases, which poses a considerable problem when preparing for system migrations. In addition, the sheer volume of data can slow down operations and increase costs, making efficient data management a crucial need.
Production Revenue Accounting (PRA) is a specialized financial management process used to accurately track, manage, and report revenue generated from the production of oil and gas resources. It involves the meticulous calculation and allocation of revenue to various stakeholders, including royalty owners, working interest owners, and regulatory bodies, based on production volumes and contractual agreements.
PRA ensures compliance with industry regulations and financial standards, providing detailed insights into revenue streams, operational efficiency, and profitability, which are critical for strategic decision-making and financial planning in the energy sector.
The Challenge
The solution provided by SAP was PRA Data Management, which involved using separate databases that did not provide the benefits of data archiving and compression. This workaround did not adequately address the issue of database size and accessibility, leaving many companies in a data management dilemma.
The inability to archive PRA data effectively has several repercussions. Large, unwieldy databases can lead to slower query times and reduced performance, hindering day-to-day operations. Costs associated with maintaining and managing these large databases can escalate quickly, impacting the bottom line. Companies also face difficulties during system upgrades or migrations, as the enormous data volume can complicate and prolong these processes.
The Solution
To tackle these persistent issues, Auritas has developed a proprietary solution that revolutionizes PRA data archiving. Leveraging SAP-based archiving, Auritas’ mechanism allows companies to archive their PRA data while maintaining seamless access to these transactions.
This innovative approach not only reduces the database size significantly but also ensures that archived transactions remain accessible before and after migrations to SAP S/4HANA or the cloud. By enhancing the existing SAP archive framework, Auritas’ solution ensures that companies can upgrade their systems without disruption.
Want to get into the technical demonstration/explanation? Schedule a meeting with Auritas today and get started!
Oil & Gas Case Studies
In a case study involving a major oil and gas corporation, the PRA data constituted a staggering 75% of their transactional database size, severely impacting their operational efficiency and escalating costs. Facing these challenges, the company turned to Auritas for a solution. With its proprietary SAP-based archiving mechanism, the company saw a reduction of the PRA data from 24TB to 13TB, a 45% reduction. This substantial reduction not only alleviated the database burden but also enabled the company to utilize the archive link object in current period journal entries, ensuring seamless access to archived transactions and enhancing overall data management and operational performance.
In another compelling case study, NBC Universal, leading media and entertainment company, faced significant data management challenges with their expansive database. By partnering with Auritas, they achieved a remarkable 50% reduction in database size, which streamlined their operations and reduced costs. Auritas’ solution provided NBC Universal with robust reporting and audit access to off-line archived data, ensuring compliance and transparency. Additionally, the company was able to align current period journal adjustments to archived objects, facilitating seamless financial adjustments and enhancing overall data accuracy and efficiency.
Auritas’ solution stands out in the market as the most reliable option for oil and gas companies looking to optimize their PRA data management. It provides a robust mechanism that not only alleviates the burden of large databases but also facilitates smooth transitions during system upgrades, ensuring business continuity and operational efficiency.
This solution also enhances the overall data management strategy by enabling companies to adhere to industry best practices while maintaining compliance with regulatory requirements. With Auritas’ innovative approach, oil and gas companies can streamline their PRA processes, reduce operational costs, and improve the agility of their IT environments.
Learn more about Auritas’ work in the Oil & Gas arena and explore relevant case studies.
