Full joint venture accounting integration and implementation of strong financial controls was imperative, as was effective project accounting and reporting.
The creation of a web-based enterprise portal allowed users to access information and submit and approve documents such as purchase requisitions.
At the end of each month an online consolidation process is run, transferring financial transactions from multiple legal entities (including joint venture companies) into a single consolidation company. Transactions are consolidated at a company level, allowing NZOG to produce income statements at the Group and Company levels. Using the web-based viewing functionality managers can easily access their reports.
Staff previously captured their timesheets manually using time consuming and overly complex Excel spreadsheets. This manual process was automated using standard Dynamics AX time recording functionality. By leveraging the Enterprise portal capability users can now record the time they worked against jobs and submit this to their line manager for approval. The automated solution enables NZOG to easily capture and record time in an efficient and accurate manner.
NZOG’s exploration project costs are managed using the Projects accounting functionality. Combining the budgetary control features of Dynamics AX, projects managers now maintain financial control of the Authorisations for Expenditure (AFEs) for the project as well as providing up to date and timely reporting of the project activities to the parties of the exploration venture. A reporting solution was also developed to support the core joint venture requirements, such as joint venture billing statements and the production of the joint venture partner “cash calls”.
NZOG now has an integrated, robust ERP platform which handles both the complexities of an international business and the organisation’s joint venture accounting requirements. Along with access to information through the enterprise portal, the automation of key business and control processes and vastly improved financial reporting has ultimately helped to free up the finance team to focus on providing more value-added business support and advice.
NZOG’s CFO, André Gaylard says: “Company growth and increasing complexity within our business necessitated a new FMIS, and Microsoft Dynamics AX stood out as the best fit for us, in particular because of its joint venture accounting functionality.
We had very tight timeframes, but also had high expectations of what our ERP solution needed to deliver. The combination of Intergen’s AX Accelerator, Intergen’s expertise and agile implementation approach, and the richness of functionality offered within R3 meant we were able to achieve the best of both worlds – a world class solution delivered in a rapid, cost effective way – in a very short space of time.”
The business case
Company growth and expansion plans, greater reporting requirements and increasing complexity in New Zealand Oil and Gas’ business drove the need for a new FMIS. NZOG chose Microsoft Dynamics AX for its rich functionality and in particular its joint venture accounting capability.
Intergen’s InSure Accelerators for AX allowed for a swift implementation, giving NZOG a robust, integrated, full-service ERP platform within a 13-week timeframe.
The business value
- Ability to meet aggressive deadlines and tight project scope without compromising on quality or functionality using Intergen’s InSure Accelerators
- Real-time financial insights
- Improved recording, tracking and reporting of financial information
- Automation of key business and control processes
- Greater financial and cost controls in place
- Time savings and business efficiencies achieved, freeing up finance team to focus on more value added business support and advice
- Easy access to information and the ability to drill down into more detailed information
- Time is captured and recorded in an efficient and accurate manner