What is gross revenue interest in SAP IS-OIL-UOM-MII - UOM Manufacturing Integration and Intelligence?

SAP Term: gross revenue interest

• Component: IS-OIL-UOM-MII

• Component Name: UOM Manufacturing Integration and Intelligence

• Description: A percentage of ownership of the minerals entitled to the lessee operator and other working interest owners where joint interest agreements are involved, which are subject to royalty interest obligations maintained by the lessor. When more than one working interest owner is included in the division of interest, the sum of the gross revenue interest of all working interest owners must equal 100%. The lessee percentage interest after satisfaction of the royalty obligation is referred to as “net revenue interest” and the sum of all net revenue interest both working and royalty interest must equal 100%.

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• Key Concepts:
  Gross revenue interest is a term used in the IS-OIL-UOM-MII UOM Manufacturing Integration and Intelligence component of SAP. It is a measure of the total revenue generated by a manufacturing process, including all costs associated with the production of goods. This includes raw materials, labor, overhead, and other costs associated with the production process.
  
  How to use it:
  Gross revenue interest can be used to measure the profitability of a manufacturing process. It can be used to compare different processes and identify areas where improvements can be made. It can also be used to track changes in production costs over time and identify areas where cost savings can be achieved.
  
  Tips & Tricks:
  When calculating gross revenue interest, it is important to include all costs associated with the production process. This includes raw materials, labor, overhead, and other costs associated with the production process. It is also important to consider any taxes or fees that may be applicable to the production process.
  
  Related Information:
  Gross revenue interest is closely related to other measures of profitability such as net profit margin and return on investment (ROI). It is also related to cost accounting principles such as activity-based costing (ABC) and target costing.