Do you have any question about this SAP term?
Component: IS-OIL-PRA-REV
Component Name: Revenue
Description: A gas well that cannot produce an average of 250 MCF per day, under operating conditions for the entire taxable period.
Key Concepts: An incapable gas well is a well that is not capable of producing enough gas to be economically viable. In the SAP IS-OIL-PRA-REV Revenue Recognition component, incapable gas wells are treated differently than other wells. They are not included in the revenue recognition process and are instead treated as an expense. How to use it: In order to use the SAP IS-OIL-PRA-REV Revenue Recognition component, you must first identify any incapable gas wells in your system. Once identified, these wells should be excluded from the revenue recognition process and instead treated as an expense. Tips & Tricks: When identifying incapable gas wells, it is important to remember that they may not always be obvious. It is important to thoroughly review all of your wells to ensure that none are being overlooked. Related Information: For more information on the SAP IS-OIL-PRA-REV Revenue Recognition component, please refer to the official SAP documentation. Additionally, you can find more information on incapable gas wells and how they are treated in the SAP system on various online forums and websites.