Cost Center Accounting 1 EXXON Gaetan Raevens 2 CBR Corinne Sprung 3 STAD GENT Vincent Smeulders
Structure Contents 1. Short description of company + Sap implementation 2. - Position cost center accounting in controlling implementation - Describe high-level cost / revenue flow (start from P&L structure) 3. Guidelines and templates used to determine cost centers structures and allocations (E.g. coding, organizational aspects, level of detail, …) 4. - Learning points - Specifics Timing: each 30 Minutes !
CCA on EXXON-MOBIL Project 1. Project Description. 2. Management of Revenue/Cost within the company, role of CCA in this structure. 3. Cost centers structures and allocations. 4. Learning Points.
1. Project Description. • EXXON- MOBIL is the first Oil company with a CA of 1000 billion USD • The project is to implement best practice and SAP worldwide for the downstream business • The budget is about USD spend in 4 years for approximatevely 100.000 users
2. Management of Revenue/Cost within the company, role of CCA in this structure. • 2.1 Reporting structure for Profitability. • 2.2 Level of detail. • 2.3 CCA position in the reporting structure • 2.4 Role of CCA.
2.1 Reporting structure for Profitability. TOTAL AFFILIATE REFINING/SUPPLY MARKETING LUBES MARKETING FUELS LubesTotalLBU Retail Fuels Aviation Refining 1 Distribution Marine Refining 2 Lubes ex. Retail LPG Lubes Refining Retail Lubes Asphalt ICR
2.2 Level of detail. Company Owned SS Dealer Owned SS CORs Industrial/Commercial Government/Military Home Direct Wholesalers Airlines General Aviation Export CUSTOMER GROUP BY LBU EXAMPLES fromCustomer Group & Prod. Hier. level 3 The Customer Groups will typically appear in several of the Logical Business Units (LBU) For the lower levels in the product hierarchy, Gross Margins based on invoice, will be available in SIS only Lowest level for business profitability segment Motor Gasoline Diesel LPG PCEO (cars) MCO (motorbikes) HDDO (heavy duty) Asphalt PRODUCT HIERARCHY, level 3 Grand totals by Prod. Hier. Grand totals by Customer Group
SD SD CO- CO- CCA CCA FI FI CO- CO- OPA OPA 2.3 CCA position in the reporting structure Sales orders/ Invoices Quantities/ revenues/ discounts Transfer Price incl. Primary Freight. Differential to reflect method of delivery as appropriate/ sec. freight Actual cost of goods sold Other Earnings effects (A/C 060-090) CO-PA EC- PCA Overhead andmarketing costcenter acctg. incl. Delivery and hdlg. OPEX Cost center costs by LBU and CG allocated to Product Hierarchy 3 Settlementof orders
2.4 Role of CCA • CCA contains only OPEX • CCA allow a good management of the cost at the operational level. • CCA must give the data to report on profitability for ECI. • CCA must be the engine of the application of Shared Services between affiliate. • CCA participate to the elaboration of Exxon-Mobil corporate reporting
3. Cost centers structures and allocations. • 3.1 Cost center Structure • 3.2 Allocation
3.1 Cost center Structure • Cost center Structure: Principles • Road Map
Cost center Structure: Principles • Following the organization design
3.2 Allocation • Allocation: Principles • Road Map
Further Steps 1. Preparation of individual presentation Who: Corinne, Gaetan and Vincent - When: before 13 December 2. Send individual presentation Who: Corinne, Gaetan and Vincent - When: before 13 December 3. Preparation integration Who: Geert - When: before 17 December 4. Integration meeting Who: All - When: Fr 17 December 16:00 - 17:30 h 5. Send final presentation Who: Geert - When: Before 31 December 6. Give presentation Who: All - When: Fr 14 January 16:00 - 18:00 h