What is royalty interest in SAP (IS-OIL-UOM-OWN - UOM Ownership)?

SAP Term: royalty interest

• Component: IS-OIL-UOM-OWN

• Component Name: UOM Ownership

• Description: Ownership of a percentage of production or production revenues, produced from leased acreage. The owner of this share of production doesnot bea rany of the cost of exploration, drilling, producing, operating, marketing or any other expense associated with drilling and producing an oil and gas well.

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• Key Concepts: 
  Royalty interest is a term used in the SAP IS-OIL-UOM-OWN UOM Ownership component. It refers to the percentage of ownership that an entity has in a particular oil and gas unit. This percentage is typically based on the amount of money invested in the unit, and it determines how much of the profits or losses from the unit will be allocated to the entity. 
  
  How to use it: 
  In order to use royalty interest in SAP IS-OIL-UOM-OWN UOM Ownership, an entity must first determine their percentage of ownership in a particular oil and gas unit. This can be done by calculating the amount of money invested in the unit and then dividing it by the total amount of money invested in the unit. Once this percentage is determined, it can be entered into SAP IS-OIL-UOM-OWN UOM Ownership as the entity's royalty interest. 
  
  Tips & Tricks: 
  When calculating an entity's royalty interest, it is important to remember that any additional investments made after the initial investment will not be taken into account when determining the percentage of ownership. Additionally, any losses incurred by the unit will also be taken into account when calculating an entity's royalty interest. 
  
  Related Information: 
  For more information on royalty interest and how it is used in SAP IS-OIL-UOM-OWN UOM Ownership, please refer to SAP's official documentation on the subject. Additionally, there are many online resources available that provide detailed explanations and examples of how royalty interest works in SAP IS-OIL-UOM-OWN UOM Ownership.