某咨询中石油财务信息系统设计

1、某咨询中石油财务信息系统设计Contents1.Business requirements32.Gap analysis103.Overall approach and design principles134.Business process overview155.Overview of system changes186. New data files and associated processes247. System processes for consolidation and reporting29Appendix A - Report formats322System Des

2、ign for FMIS Modification2To be able to do an IPO, PetroChina need to be able to produce certain key financial reportsTo produce these reports, some changes to FMIS needs to be implemented.Business requirement overviewThe FMIS system need to be able to produce the following reports:Annual consolidat

3、ion reports as required by China Finance Ministry based on the PRC GAAP for joint-stock company. Quarterly consolidation of reports of the overall ListCo based on the IAS is required for publicly listed companies. Disclosure items are also required by IAS and PRC GAAP for joint-stock company. Some o

4、ther information is required to support annual auditing.All the above reports (except the audit information) will need to be produced along the new PetroChina organization structure as described in the following page. The above reporting requirements are detailed in the next pages.3PetroChinaLevel 1

5、PetroChinaLevel 2SpecializedCo/Business GroupLevel 3SegmentLevel 4TypeE&P.Level 5BusinessUnits.Gas & PipelineDownstreamOil&GasE&PNatural gas(inc. gas pipeline)Refining &MarketingPetrochemicals& marketingOthersRefiningPetroChina reporting structureMarketingR&DChina oilHQBeijingE&PHuaBeiG&PHuaBeiRefin

6、eryHuaBeiNorth ChinaPetr.TradeChina O&GresearchinstituteLevel 6OperationsUnitsLevel 7SuboperationsUnitsOil field #1Oil field #2Oil field #3District 1District 2District 34PRC GAAP consolidation report requires the following data:Business requirements for PRC consolidationIndividual PRC GAAP reports o

7、f all entity involved in consolidation.Balance sheet ( PRC GAAP) Income statementCash flow statementInternal transactions reportsInternal transaction listInternal product sales or purchase reportInternal rendering of service report or internal service purchase reportInternal long-term equity investm

8、ent report, capital structure reportInternal payable or receivablesRequired information for internal transactionsCounterpart, transaction type, period, beginning balance, credit amount, debit amount, ending balance5IAS and PRC GAAP requires the following items for disclosure purpose:Business require

9、ments for disclosure purposesAging report of accounts receivable ( PRC GAAP )Long-term equity investment ( PRC GAAP )Investee, stock type, share number of stock, share percentage, amount, remarksLong-term bond investment ( PRC GAAP )Bond type, par value, rate, purchased amount, due date, interest of

10、 this year, accumulated interest, remarksOther non-equity long-term investment ( PRC GAAP )Debtor, principal, rate, due date, interest income of current period, accumulated interest, remarksLong-term loan ( PRC GAAP )Loaner, amount, due date, rate, term(If foreign loan) Foreign currency amount, RMB

11、amount by exchange rate of balance sheet dateBonds payable ( PRC GAAP )Bond name, par value, issued date, issued amount, due date, interest expense of current year, accumulated interestRelated party transactions ( PRC GAAP & IAS)All data listed in internal transaction reports, only different entity

12、nameIncome analysis report(IAS)Special deductions relating to exploration and production activities, Income not subject to tax; Expenses not deductible for tax purposesMovement of allowance for doubtful accountsBalance at beginning of period, Provision, Deductions, Balance at end of period Movements

13、 in allowance for diminution in value of inventoriesBalance at beginning of period; Provision; Deductions; Balance at end of periodMovement report of PPE & accumulated depreciationCost: Beginning balance, additions, disposals, ending balance;Accumulated depreciation: Beginning balance, charge for th

14、e year, disposals, ending balanceMovement of allowance of investment value diminutionBeginning balance; Provision; Deductions; Ending balanceLoans Analysis ReportDirectors remuneration reportSalaries, allowances and other benefitsContribution to retirement benefit scheme6FMIS also need to produce ce

15、rtain information that is required to facilitate annual audit.Business requirements for annual auditThe required information for accounts receivable, long-term equity investment, long-term non-equity investment has been listed in disclosure requirement. The only remaining items for annual audit are

16、listed below:Short-term investmentInvestment type, investee, security type, par value, historical cost, rate, due date, interest receivable or dividends receivable, premium /discount and its amortisationNotes receivableNotes type, par value, rate, drawer, due dateOther receivableDebtor, amount, post

17、 due daysAssets revaluationAssets class, book value before revaluation, book value after revaluationShort-term loanLoaner, amount, rate, due dateNotes payableOwner, par value, rate, due date7Gap analysisChapter 28Systems issuesThe following systems issues are identified as critical to the ability fo

18、r PetroChina to be able to do consolidation and produce the required reportsREQUIREMENTReconciliation of transactions that occurs across different accounting entities. Some detailed information need to be passed up the corporate reporting structure. SYSTEM ISSUEThis is difficult to do with the curre

19、nt FMIS since FMIS treats each accounting entity as independent from other accounting entities.This is not possible in the current FMIS since FMIS only transfer reports, not detailed information.CONSOLIDATION PROCESSREQUIREMENTIAS report have some different grouping of accounts compared to PRC repor

20、ts In the interim, CNPC requires reporting based on locations in addition to the “normal reporting procedure along segmentDisclosure items need to be produced and rolled upSYSTEM ISSUECurrent FMIS aggregates report up the hierarchy and it is not possible to see or reconstruct the individual accounts

21、, therefore it is not possible to regroup accounts at higher level.Currently FMIS reporting hierarchy follows a strict tree pattern with one entity reporting to only one parent.Current FMIS can not produce this data nor roll it upREPORTING PROCESS9Overall approach and design principlesChapter 310Des

22、ign principles / goalsThe design has to be implementable prior to the IPOModified FMIS must be able to produce all required reports with minimal manual workAvoid major changes in business processAvoid major changes in FMIS which needs long development time and/or high risk of destabilizing FMISMargi

23、nal changes to FMIS is preferred to marginal change in business processChanges in business process or FMIS should have minimal dependency on short-term improvement to IT infrastructure.Due to current limitations in telecommunication, the amount of data that needs to be transferred should be minimize

24、d.To ease transition, the modified FMIS need to have data compatibility with current FMISThe following principles have been followed in creating the design for the new system:11Business process overviewChapter 412Roll up and consolidation process chart1.1 Enter transactionsfor Level 6 HO1.5 Enter sa

25、me-segment, same-locationelimination entries1.4 Import reportsfrom level 6HO ledgers1.2 Create reports forLevel 6 HO ledgers1.3 Receive reports & import datafrom level 7 (district)1.8 Produce IASadjustment file(IAS file)1.7 Produce BU segmentPRC report1.6 Determine IAS adjustments1.9 Send PRC BU seg

26、ment reportand IAS file to Beijing Business group Finance2.1 Receive PRC reportfrom BU Location segments2.2 Enter different-segmentsame-locationelimination entries2.4 Send different-segment,same-location eliminationfile to Beijing H.Q.2.3 Produce Location PRC report3.1 Receive BU segmentPRC report a

27、nd IAS file1.10 Send PRC report to Location HOfinance3.2 Enter same-segment,different-locationselimination entries3.3 Produce bus. group PRC report andIAS adjusted report4.1 Receive PRCreport and segmentIAS file4.2 Receive different-segment, same-location elimination files4.3 Enter different-segment

28、,different-locationelimination entries4.5 Produce corporatePRC reports andIAS reportsBU LocationLocation HOFinanceSegment Finance(Beijing)CorpFinance3.4 Send business group PRC report andIAS file to corp4.4 Enter IAS adjustments(corporate level)Level 5Level 3Level 113Overview of system changesChapte

29、r 514New or modified functionalities - Transaction systemNew data fileF1 - Internal transaction data fileF2 - Disclosure & IAS supporting data fileNew tablesT1 - Special disclosure itemsNew system processesP1- Internal transaction data entryP2 - Internal transaction file exportP3 - Special disclosur

30、e items & IAS supporting data entryP4 - Special disclosure items & IAS supporting file exportChanges to FMIS Transaction system is summarized in the following list:15F3Elimination data fileData flow diagram - Reporting systemNewfunctionalityLowerlevelReportsLedgerreportfilesAggregationP7Eliminationp

31、rocessExistingfunctionalityAggregatedReportsConsolidatedLedgerReportP16Export /printconsolidatedledger reportT2EliminationF2Disclosure& IASsupportingdata fileF1Internal transactiondata fileT4InternalTransactionP13ExportremaininginternaltransactionEliminationEntriesInternal transaction &eliminationre

32、ports &queriesAnalyze info anddetermine requiredeliminationP5Query, view, print P14Export disclosures &IAS supportingdataP8Export EliminationentriesF4IASadjustmententry fileF3Elimination data fileLedgerreportfilesF2Disclosure& IASsupportingdata fileF1Internal transactiondata fileF4IASadjustmententry

33、 fileP12Export IAS adjustmentP15PrintIAS reportsT3IAS adjIAS adjustmententriesAnalyze info anddetermine requiredIAS adjustmentP9Query IAS adjustmentdataIAS adjustmentinfo reportsSome major changes are required in the FMIS Reporting systemP19Import internaltransactionP6Enter eliminationentriesP18Impo

34、rt eliminationentriesP17Import IASadjustmentsP10Enter IASadjustmentsP15PrintPRC reportsP20Import disclosure/IAS support dataT5Consolidationaccount pair16New or modified functionalities - Reporting systemNew data fileF1 - Internal transaction data fileF2 - Disclosure & IAS supporting data fileF3 - El

35、imination data fileF4 - IAS adjustment entry fileNew data tablesT2 - Elimination entry tableT3 - IAS adjustment entry tableT4 - Internal transaction tableT5 - Consolidation account pair tableThe changes to the FMIS Reporting system is shown in the following list:New system processesP5 - Query info f

36、or eliminationP6 - Enter elimination entriesP7 - Elimination processP8 - Export eliminationP9 - Query info for IAS adjustmentP10 - Enter IAS adjustmentsP11 - IAS adjustment processP12 - Export IAS adjustmentsP13 - Export remaining internal transactionsP14 - Export disclosure & IAS support dataP15 -

37、Print IAS reportP16 - Print / Export PRC reportP17 - Import IAS adjustmentsP18 - Import elimination entriesP19 - Import internal transactionsP20 - Import disclosure / AIS support data17Required new / modified reportsPRC report & disclosure requirementPRC Income statement report modificationPRC Balan

38、ce sheet modificationPRC Cash flow statement modificationInternal transaction reportAging report of accounts receivableLong-term equity investment reportLong-term bond investment reportOther long-term investment reportLong-term loan reportBonds payable reportRelated party transaction reportIAS repor

39、t & disclosure requirementIAS income statement definitionIAS balance sheet definitionIAS cash flow statement definitionStatement of owners equityNote 4 Employee compensation costsNote 5 interest expenseNote 6 Income before income taxesNote 7 Income taxesNote 8 Cash and cash equivalentsNote 9 Account

40、s receivableNote 10 InventoriesNote 11 Prepaid expenses and other current assetsNote 12 Property, plant, and equipmentNote 13 InvestmentsNote 14 Intangible and other assetsNote 15 Accounts payable and accrued liabilitiesNote 16 DebtNote 17 Deferred income taxesNote 22, 23, 24Auditing required report

41、sShort-term investment reportNotes receivable reportOther receivable reportShort-term loan reportNotes payable reportIn addition to the system changes, the following reports must be developed and produced18New data files and associated processesChapter 619F2 - Disclosure and IAS support data file an

42、d associated processesP3The disclosure data and IAS supporting data will be recorded to the special disclosure table (T1). This purpose of this table is to collect data that can not be derived from account balances, e.g. UOP vs straight line depreciation in IAS adjustment. Although different disclos

43、ure types are required for different transaction types, the system will use the same table to store the data.Each field in the table has different meaning for different disclosure type. The disclosure types are pre-defined by PetroChina headquarter and clear instructions to the accounting entities n

44、eed to be given about which disclosure types must be filled out by each accounting entity.FMIS should be enhanced to “understand the different disclosure type and for each disclosure type, the system needs to be able to display a special input screen for the disclosure type to prevent wrong entry to

45、 be made to the disclosure database.P4All recorded disclosure data and IAS support data will be exported to a file and sent up. The file is then imported to reporting system (P20) and stored in the report database.P9Users review the IAS supporting data in reporting system to produce the IAS adjustme

46、nt entries.P14All details of disclosure and IAS supporting data received from lower level in reporting system will be exported and sent up to higher level without aggregation.This file is designed to collect non-ledger data for PRC & IAS disclosures and supporting data for user to do IAS adjustment.

47、 REPORTING SYSTEMLowerlevelReportsP14Export disclosures &IAS supportingdataDisclosure& IASsupportingdata filesP9Query IAS adjustmentdataIAS adjustmentinfo reportsTRANSACTION SYSTEMT1Special disclosureitemsF2Disclosure& IASsupportingdata filesP4Producespecial disclosureitems reportP3Enter specialdisc

48、losure & IASsupport dataP20Importdisclosure &IAS supportFILE FORMAT & TABLE STRUCTUREF2/T1 Disclosures and IAS supporting dataUser-defined num1(number)User-defined num2 (number) Disclosurecode num6User-defined char1 (char.)User-definedchar2(char).char6 (char)Businessentitycode20F3 - Elimination data

49、 file and associated processesP6This function lets users enter elimination entries to the elimination table. The entries will be checked and posted if approved. If the entries are not approved, user can modify it prior to posting.P8The elimination entries will be used in consolidation at the various

50、 levels (See 7. System processes for consolidation and reporting). To allow elimination at higher levels, F3 file will be exported and sent up to higher level without any aggregation. Note: the business entity code in this table refers to the business entity which create the elimination entry.Elimin

51、ation entries are input and rolled up in consolidation in different level.REPORTING SYSTEMT2EliminationEliminationEntriesInternal transactionreports &queriesAnalyze info anddetermine requiredeliminationP8Export EliminationentriesF3Elimination data fileP6EnterEliminationEntriesF3Elimination data file

52、ImportEliminationEntriesFILE FORMAT - F3 - Elimination dataTABLE STRUCTURE - T2 EliminationDescriptionCredit amountAccountcodeDebitamountPeriodBusinessentity codeP5Query, view, print 21F4 - IAS adjustment entry file and associated processesP10. The user creates IAS adjustment entries based on analys

53、is of IAS adjustment supporting data and then inputs the data to IAS adjustment entry table (T3) in the reporting system. The entries will be checked by approver and if they are correct, they will be posted to disable further change. If they are not, it will be modified and rechecked.P12. IAS adjust

54、ment entries are exported and rolled up without aggregation to the higher levels. The entries will be used in IAS reporting, basically on the highest levels in the corporation on the original level The IAS adjustment file collects data to fulfill IAS adjustment in different level and roll it up to t

55、he corporate levelREPORTING SYSTEMT3IAS adj.IAS adj.EntriesP12Export IAS adj.entriesF4IAS adj. data fileP10EnterIAS adj.EntriesF4IAS adj. data fileIAS reportingprocessAnalyze info anddetermine requiredIAS adjustmentIAS adjustmentinfo reportsF3 /T2 IAS Adjustment EntriesFILE FORMAT & TABLE STRUCTURED

56、escriptionCredit amountAccount codeDebit amountPeriodBusinessentity code22P9 - Elimination process and PRC reportingThe elimination process involves two steps: 1)Elimination entry preparation - includes step P6 & P8. This step has been described earlier in this document2)Perform the elimination of i

57、nternal transactions - step P7The result of the elimination process is a Ledger report adjusted by eliminating the effect of internal transactions. Elimination entry record definition is:(account code, entry description, period, credit amount, debit amount)To perform the elimination of the internal

58、transactions, system perform the following calculations:Consolidated balance of one ledger report item = aggregated balance of the ledger report item+(-) total credit amount of all elimination entries for the item-(+) total debit amount of all elimination entries for the itemConsolidated debit amoun

59、t of one ledger report item = aggregated debit amount of the ledger report item+ total debit amount of all elimination entries for the itemConsolidated credit amount of one report item = aggregated credit amount of the report item + total credit amount of all elimination entries for the itemThe resu

60、lting consolidated ledger report is ready for PRC-compliant reporting. The PRC reports are created by producing the report with the prepared PRC report definitions against the eliminated ledger report.After the PRC report is created, it is recommended that the PRC report be stored in a permanent tab