Saudi Aramco GI 216.604-600 OPERATING EXPENSE AND ORGANIZATION CODES - CLEARANCE ACCOUNTS

This document, Saudi Aramco GI 216.604-600, outlines the procedures for utilizing Operating Expense and Organization Codes specifically for Clearance Accounts within Saudi Aramco's accounting framework. It details various clearance account types, including those for Engineering & Construction Overhead, Material Prorate Clearance, Abu Sa'fah Stabilization, Dry Hole & Abandonment Expense, Recovery of P/L Operating Costs, Ras Tanura Utilities, and Alternative Fuel Settlement.

The document explains how these accounts are applied for cost allocations, charges not easily attributable to specific departments, and the management of overheads and reallocations in accordance with SAP system processes. It provides specific cost elements and account references for accurate financial reporting and budgetary control.

This guide is essential for understanding the intricacies of internal cost distribution and overhead management, particularly for scenarios where standard budgetary responsibility is undefined. Readers will gain clarity on how to correctly classify and allocate operational expenses, ensuring proper accounting treatment for various cost scenarios within Saudi Aramco's complex financial structure, enabling more precise financial analysis and reporting.

Ideal for accounting managers, financial analysts, and cost accountants working in the oil and gas industry or similar large-scale organizations.