The Preliminary Specification Part CCCXV (PA Part XXXV)
Let's turn now to the comprehensive nature of the accounting that is done in the Partnership Accounting module of the Preliminary Specification. What ever kind of accounting that is done in the Preliminary Specification, whether it be for the producer firm or the Joint Operating Committee, the Partnership Accounting and Accounting Voucher are the two modules that capture everything the accountant user will need. From the General Ledger to the Financial Statements of the producer and Joint Operating Committees everything a user needs, from management accounting to financial accounting will be here.
To provide for this we will be using the Oracle Fusion Application Financial Management Suite of modules as the base of the Preliminary Specification. Included within that are the General Ledger, Accounts Payable and Accounts Receivable modules that will be used extensively. It will be here in the Partnership Accounting module that the People, Ideas & Objects user community will determine the need for the other Oracle Financial Management Suite modules of Payments & Collections, Asset Management and Cash & Expense Management.
It is important to stress the users involvement in determining the input, process management, function and output of this module. As with all of the modules within the Preliminary Specification this is your opportunity to define what it is that you need and want in terms of Information Technology in your firm. This should be looked upon as a once in a lifetime opportunity and there will be little opportunity to join the community once the Preliminary Specification begins. The time to participate is now, if you can see value in the development of the People, Ideas & Objects systems then you should begin the process and start to participate as soon as possible.
Outside of the core Oracle modules we will be doing a significant amount of development that will be key to the oil and gas industry. This will require us to drop down into the Oracle Fusion Middleware layer and access what is a very elaborate Java EE server. This will be used to provide the revenue and royalties systems that will build off of the Material Balance Report. Recall that the Material Balance Report is also being crafted at this layer. Management of the firm and Joint Operating Committees capital and operating costs. And of course the revenues, royalties, capital and operating will all have the capacity to be reported in gross and net values. Users may have extensive ideas as to how they want their data to be displayed, and they may want the traditional formats like the Statement of Operations and Statement of Expenditures. We have also talked about the royalty systems during the discussion in the Petroleum Lease Marketplace module and that discussion would apply to the Partnership Accounting module as well. It would be the determination of the user community if those calculations are done here or there. And the Gas Cost Allowances and how they are potentially unique for each owner in the Joint Operating Committee, and as such make the royalties unique for each producer.
As we will see in the Compliance & Governance module there are extensive capabilities in the Oracle Fusion Applications that enable the Balance Sheet, Income Statement and Statement of Changes in Financial Position automate the process of compliance. Updates to the regulations are done through Oracle and affect the Financial Statements that are submitted to the regulators. Such is the nature of dealing with automated systems. All in all providing the producer an automated system from field data capture to financial statement is a broad scope, and one that should motivate everyone to participate in this worthwhile endeavor.
For the industry to successfully provide for the consumers energy demands, it’s necessary to build the systems that identify and support the Joint Operating Committee. Building the Preliminary Specification is the focus of People, Ideas & Objects. Producers are encouraged to contact me in order to support our Revenue Model and begin their participation in these communities. Those individuals that are interested in joining People, Ideas & Objects can join me here and begin building the software necessary for the successful and innovative oil and gas industry.
Please note what Google+ provides us is the opportunity to prove that People, Ideas & Objects are committed to developing this community. That this is user developed software, not change that is driven from the top down. Join me on the People, Ideas & Objects Google+ Circle (private circle, accessible by members only) and begin building the community for the development of the Preliminary Specification.
The Preliminary Specification is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for People, Ideas & Objects products remains at the sole discretion of People, Ideas & Objects.