What is the SOP for initializing ledgers?

Migrate allocation networks

When migrating networks (especially those allocating inventory dispositions, for example Oil/Sales (FIFO) or Water/Water Disposal (FIFO), perform these steps:

1. Setup the allocation network:

   • Connections

   • Assign Allocation config

   • Assign volume sources

2. Initialize inventory ledgers for the tanks for inventory products (oil/water).

3. Run Allocations and match the JOYNOG results with those from source system.

4. Sign off on the allocation setup.

Initialize ledgers

Ledgers are updated when you run a monthly allocation or trigger an allocation for an inventory disposition (for example, Oil/Sales).

1. It’s best practice to initialize ledgers on the last date of a month.
   For example, if you initialized the ledger on June 30, the networks oldest version will have effective start of June 30 or earlier. When you initialize ledgers at the end of the month, ledgers are initialized for dates on which inventory allocations will not be run so that the initialized values are not overwritten.

2. Run Allocations for the next month (using the example above, July)

   1. Compare allocation results

   2. Finalize the networks and lock allocations for the network for the month of July.

3. Transactions should be available from 1st of July for all the objects in the networks to match allocation results, without which comparing results and signing off can be a tall ask.

This will ensure networks are setup, signed off and allocations are locked, such that initiation values for ledgers cannot be overwritten.

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