Better Yield Accounting Methods Improve Financial Results

Guest Blogger: Kaylen McMullen, Marketing Assistant, Invensys Operations Management

Better Yield Accounting Methods Improve Financial Results

Refineries, petrochemical plants, and other processing facilities cannot afford to be giving material away and incurring monetary losses due to internal error, especially in such tough economic times. In order to remain profitable in a competitive marketplace, these facilities must ensure accurate tracking and financial assessment of receipts and shipments. Even a small percentage of unaccounted for material adds up during the course of a year and is likely to have a negative impact on a plant’s profitability. Having the ability to accurately close the material balance, while also detecting faulty measurements, also signifies improved quality in performance. Closing the material balance may increase profitability in a facility by $4-5 million each year.

Implementing yield accounting practices and technology in processing facilities will allow for better tracking of material, closure of the material balance, reduced book losses, and proper assessment of the facility’s financial performance. Today’s yield accounting software solutions provide necessary assistance in closing the balances by identifying measurement and data entry errors, performing mathematical reconciliation of the plant measurements and accurately reporting reconciled consumption and production information to the financial systems. Primary issues associated with popular yield accounting solutions include data quality, data reconciliation, and integration with data sources.

A yield accounting solution was designed by Invensys Operations Management to address the problems associated with many other solutions of its kind. The Invensys Yield Accounting solution integrated ErrorSolver, a 3rd party yield accounting software, with Invensys’ existing Off-sites solutions so data does not have to be imported by multiple sources or be manually entered. This direct integration lessens the implementation time and eliminates a source of errors that arise from manual entry of tank and movement data. The solution leads the competition with its highly flexible and easy-to-use graphical modeling environment, automated gross error detection, composition tracking, and data reconciliation performance. ErrorSolver users have reported that the work time to reconcile and close the balances has been cut in half. The Invensys solution provides the critical components necessary to optimize performance in the workplace.