What is 'owner keep whole' in SAP IS-OIL-PRA - Production and Revenue Accounting?

owner keep whole - Overview

• Component: IS-OIL-PRA

• Component Name: Production and Revenue Accounting

• Description: A process where there is a desire to keep certain working interest owners' share of production or sales equal to their respective entitlement percentage share, that is, the owners will not participate in over or under deliveries of product.

owner keep whole - Details

• 
  Key Concepts: 
  Owner Keep Whole (OKW) is a pricing mechanism used in the IS-OIL-PRA Production and Revenue Accounting component of SAP. It is a type of pricing agreement between a producer and a buyer, where the producer agrees to sell the buyer a certain amount of oil or gas at a fixed price, and the buyer agrees to pay the producer for all of the oil or gas produced, regardless of whether it is sold or not. 
  
  How to use it: 
  In order to use OKW in SAP, the producer must first create an OKW contract in the IS-OIL-PRA Production and Revenue Accounting component. This contract will specify the terms of the agreement between the producer and buyer, including the fixed price for the oil or gas, as well as any other conditions that must be met. Once this contract is created, it can be used to track production and revenue for each transaction. 
  
  Tips & Tricks: 
  When creating an OKW contract in SAP, it is important to ensure that all of the terms are clearly defined and agreed upon by both parties. This will help to ensure that there are no misunderstandings or disputes later on. Additionally, it is important to keep track of all production and revenue data associated with each transaction in order to accurately calculate profits and losses. 
  
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