Joint Venture AccountingBest Practices

TERRI M LINDQUIST | P2 ENERGY SOLUTIONS

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Terri M. LindquistSENIOR PRINCIPAL CONSULTANT

713.481.2038TLINDQUIST@P2ENERGYSOLUTIONS.COM

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Agenda

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5

What is a Best Practice?

Tangible vs Tangible Measurements

Challenges and Solutions in Achieving Best Practices

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Defining Best Practices

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Best PracticesBilling Maximization

Accurate and Timely Invoicing

Rapid Cost Reimbursement (Reimbursement)

COPAS and SOX Compliance

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7

Measurements

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Tangible vs Intangible MeasurementsProcessing Times

Records Processed

Invoices Generated

Data Integrity

Redundancy Elimination

Adherence to core company standards and business practices

Owner Relations

Manual vs Automated

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Challenges and Solutions

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Challenges and Solutions in Achieving Best Practices

Best

Prac

tice

Goa

l

Source data integrity

Solu

tion

Cap

abilit

y Enforce data corrections at the source

Productized integration with source data

Best

Pra

ctic

e Va

lue Auditable results

throughout the life cycle of the transaction

Transparency and minimized question

Eliminates needs for custom and/or loads and interfaces. Reducing needed maintenance and resources.

Source Transaction

General Ledger

JIB Invoice

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Inbound Mapping Outbound

Mapping

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Challenges and Solutions in Achieving Best Practices

Best

Prac

tice

Goa

l Simplified data entry for complex scenarios

Solu

tion

Cap

abilit

y Flexible Allocation Structures

Date Effective

Account Controls

Audit Logs

Best

Pra

ctic

e Va

lue Auditable results

throughout the life cycle of the transaction

Enables efficient processing and accurate allocations

Improved management tool for review of expense Allocation Pools

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Challenges in Achieving Best Practices

Best

Prac

tice

Goa

l Accurate Overhead Calculations

Solu

tion

Cap

abilit

y Agreement-based functionality

Automated COPAS Inflation and COPAS compliant calculations

Productized integration with production

Best

Pra

ctic

e Va

lue Eliminates needs

for custom and/or loads and interfaces. Reducing needed maintenance and resources.

Enables efficient processing and accurate overhead entries

% $$$

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Challenges in Achieving Best Practices

Best

Prac

tice

Goa

l Efficient Payout Tracking

Solu

tion

Cap

abilit

y Agreement-based functionality

Automated calculations

Automated Statement Generation

Best

Pra

ctic

e Va

lue Eliminates offline

spreadsheets

Accurate and timely tracking

Flexibility to track on GL Date or Production Date basis

System-generated reports and notifications

Cost *

Penalty %

(Revenue)

Balance

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Challenges and Solutions in Achieving Best Practices

Best

Prac

tice

Goa

l Billing "Other" Costs: Company Labor, Payroll Burden, Company-Owned Vehicles and Equipment

Simplified and Accurate Rebilling So

lutio

n C

apab

ility Account drive,

Job Types, Rates

Capture and bill vehicle, equipment and employ utilization

Preliminary rebill view; inclusion in monthly invoicing process; suppressed billing

Best

Pra

ctic

e Va

lue Captures and

bills costs that are often missed

Eliminates need for manual journal entries

Automated process -eliminates manual journal entries

DOI driven accuracyMaximized Billing

Rebills

Utilization

Payroll Burden

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Goals Achieved

Billing Maximization

Accurate and Timely Invoicing

Rapid Cost Reimbursement (Reimbursement)

COPAS and SOX Compliance