Instead of continuously searching for the most efficient gathering and processing systems to manage capital spend, rely on Enterprise Resource Planning (ERP) Microsoft Dynamics GP, SL and CRM solutions to connect you with the information you need to power your business.
Although oil and gas companies usually have capital expenditures which include top of the line systems for gas processing and gathering, their investment lacks effective financial management or reporting functionalities. Microsoft Dynamics ERP bridges the gap by providing an easy-to-use platform with sophisticated tools to fully integrate operational systems into your ERP.
What Makes for a Successful ERP System?
There are three keys to ERP success that can be applicable across the board, not just to oil and gas industries:
- Resources: Your employees are your number one resource. They need to have adequate time to understand and implement an effective software for it to be effective in the first place. Determine how your ERP software impacts your team and ensure that you’re using an easy-to-use and intuitive software like Microsoft Dynamics that’ll keep your business running.
- Risks: Hindsight is 20/20 but you can plan for what’s ahead, including risks, with the right ERP system. An effective ERP system will plan for project risks in advance using powerful cost and schedule analysis tools. With this information in hand, you can quickly develop effective risk response and contingency plans.
- Revenues: For an ERP to be effective, it must support multiple operations. In addition to providing powerful tools to manage project portfolios, your ERP system should enable your organization to manage projects costs, resources, schedules and to help ensure an on-budget and on-schedule project.
Microsoft Dynamics provides accounting, resource planning, operations and system integration with global financial management requirements in mind. It gives you the tools you need to enable your organization to make proactive decisions. Conexus SG works with you to integrate Microsoft Dynamics ERP solutions’ strengths with your existing best-of-breed operational systems to support you with these capabilities:
- End-to-end capital cost visibility. This capability makes it easy for you to create Authorizations for Expenditure (AFE) along with supporting documentation and economic analysis at the materials level. You can easily share this information by routing it through an authorization system to various parties based upon its size and attributes (which are highly customizable, i.e. dollar value, location, cost center, field, chartered accounts, etc.).
- Highly configurable workflow means you can get processes and AFEs authorized quicker — they can be done online or via email. Approvers can review all documents and print any information they need. This information is traceable so you can keep track of AFEs from start to finish. Download our white paper on ERP for Midstream which shows samples of requisition and invoice workflow.
- Business analytics. You can get a full analysis of your company’s position, even against an AFE available within the ERP system. You can view:
- The total commitment against a cost category
- The total expenditure for that cost category
- The effect of the current purchase order on that cost category
- Remaining budget after application of the purchase order
- Microsoft Dynamics will flag the item if the purchase order sets the company over budget
- Smart payment processing. You no longer need to wait for invoices. Microsoft Dynamics tracks everything as it happens from the creation of the AFE, to the creation of the purchase order, receipt of the items and the process and payment of the invoice. You can tell at any point in the process where your company stands on any project. Expenses are immediately flagged if budgets are exceeded; mitigation strategies can be formulated.
- Sophisticated routing and multi-tier approval circuit options. The system can route purchase orders via different approval hierarchies based on the nature of the item being routed—route any kind of purchase order including capital with AFE, capital without AFE, OPEX or G&A according to the client’s preference and policies. You can also customize routes based on nature of transaction and authority with configurable rules.
- Flexible and customizable reporting. With Conexus SG and the Microsoft Dynamics ERP system, you can customize reports for your unique purpose. You can customize who sees what; information can be offered online for authorized personnel to view.
With Microsoft Dynamics ERP systems, you can transform your data into business insight to keep your operations on budget, on time and help you forecast for what’s ahead. Spend less time manually recording data, so you can minimize risk and complete projects quickly and economically.
Conexus SG can help you improve your organization’s business processes and select the right ERP system to keep your business moving as efficiently as possible. We will work closely with you and your team to understand your specific needs, and help you leverage Microsoft Dynamic’s functionality to create an ERP system that works for you.
Need more information? Our white paper on ERP for Midstream shows sample workflows and talks in detail about how the right ERP gives you more control over your CAPEX spend.