Greetings Community,
I’m sharing a workflow I developed from an excel model I had created.
In Joint Venture Accounting, payout statements are a common reporting requirement when joint venture partners decide to go non-consent. The payout statement is designed to keep track of gross net revenues less uplifted expenditures during a given period. Once gross net revenues exceed uplifted expenditures, the joint venture partner is deemed to have “paid out” and now has the right to have it’s working interest re-instated back into the joint venture deck.
Whilst the payout statement is a simple mathematical model, the complications with payout statements in the JV world is volume, especially for onshore oil wells in the North American region. It’s not uncommon where the operator is required to calculate payout statements for at least 50 onshore oil wells with multiple non-consent partners for each oil well.
With this type of repeatable process and managing volume, payout statements are ideal JV accounting process to automate using KNIME workflow.
Hopefully this payout workflow demonstrates the basic inputs requires, value mappings, calculations and table joins to create a single payout statement that provides a payout balance for each period. A basic workflow design like this can easily be used to automate repeatable processes and save the joint venture accounting analyst time in preparing these payout statements and helps to re-focus time to other value add activities (i.e. analysis vs manual data preparation/wrangling).
Happy to get feedback from the community on suggestions/improvements.
Happy Analyzing!
KCH Workflows #joint-venture-accounting #payout-statements #oil-gas #onshore