What is entitled volume in SAP IS-OIL-PRA-REV - Revenue?

SAP Term: entitled volume

• Component: IS-OIL-PRA-REV

• Component Name: Revenue

• Description: The quantity of product calculated for each individual producer in a division of interest. This is calculated by taking the total sales volume for a well multiplied by the producer's gross revenue interest. These amounts apply only to producer level transactions valued at the well completion. Entitled volumes are those amounts to which a producer is due as opposed to actual volume, which are those amounts actually sold.

Smart SAP Assistant

• Key Concepts: 
  Entitled volume is a term used in the IS-OIL-PRA-REV Revenue Recognition component of SAP. It refers to the volume of oil or gas that is eligible for revenue recognition. This volume is determined by the contract between the buyer and seller, and is based on the quantity of oil or gas that has been produced and delivered. 
  
  How to use it: 
  In order to use entitled volume in SAP, the user must first enter the contract details into the system. This includes the quantity of oil or gas that has been agreed upon, as well as any other relevant information such as pricing and delivery terms. Once this information has been entered, the system will calculate the entitled volume based on these details. 
  
  Tips & Tricks: 
  When entering contract details into SAP, it is important to ensure that all relevant information is included. This will ensure that the entitled volume calculation is accurate and up-to-date. Additionally, it is important to regularly review contracts and update them as needed in order to ensure that the entitled volume calculation remains accurate. 
  
  Related Information: 
  Entitled volume is closely related to other terms such as revenue recognition, production volumes, and pricing terms. It is important to understand how these terms interact with each other in order to ensure accurate revenue recognition calculations. Additionally, understanding how entitled volume affects pricing can help users make informed decisions when negotiating contracts.