Prior Period Adjustment Project

Prior Period Adjustment Project

 Oil & Gas Corporation deals with various companies (third party) such as: Pipeline companies are companies own the pipeline where the oil flow throw.

Schedulers are an individual who schedule how much of oil can flow through the pipeline everyday.

Here is a quick summary on how oil process works from ground to point of sale. Oil comes from the ground to the wellhead pipe; there is meter check to measure oil’s quantity and quality, and the operating Oil Company has placed that meter to make sure whatever come out the ground has been accounted for. Now the oil get transferred to a Pipeline Company (third party) and a second meter been placed to check the oil’s quantity and quality again, and both meter check need to matched. Now oil going to be mixed with other company’s oil, and high likely would be transfer to additional pipeline owned by different companies until the oil reach the point of sale.

 Accountant department responsibilities are to make sure when receive invoice from various company meter check it match with operating company invoice with no discrepancy.

Most of the time, these various company (third party) issuing revised invoice to the operating company, and therefor the accountant department need to re-process the work has been done according to the new adjustment volume and value statement.

The goal of the project is to do ‘Prior Period Adjustment’ to correct the work according to the revised statement.