Capital expenditure has soared in the oil and gas industry in recent years and project managers are under more pressure to ensure that capital projects are executed on time, and on budget.
Increasingly, Absoft is witnessing oil and gas customers integrate SAP PS as a ‘driver’ module for cost capture and has worked with these customers to develop control mechanisms, enhancing PS reporting to meet the very specific management needs of the oil and gas community.
Absoft Commercial Director, Don Valentine, has developed five key tipson how to manage capital expenditure using SAP’s Project System (PS) module;
- Structure the project to manage activities and costs
Define a clear structure to support high level budget, recording and detailed planning of internal resources, materials and service requirements throughout the supply chain
- Capture the right data
Record key reporting attributes consistently to capture all project costs and ensure accurate reporting
- Fit for purpose cost planning
Select the most appropriate platform for cost planning as reliance on Excel can become a complex, labour-intensive process
- Actively control spend
It is critical to have a funds overview capability to report on the amount committed and the type of commitment. Equally important is the ability to check if funds are being over-committed at the stage of making the commitment
- Deliver effective reporting
Define key reporting values which can identify recurring trends where planned spend is exceeded, allowing preventative action to be taken
Contact us for more advice on how SAP’s PS module can be used to effectively manage expenditure during your capital projects.