SAP Fleet Management and Fuel Fraud

Our recent work integrating SAP Fleet Management with fuel consumption data has raised the issue of identifying potential fuel fraud. Large fleets face the risk of hundreds of thousands, if not millions, of dollars in unauthorized fueling, so distinguishing fraudulent and legitimate consumption is critical.

When a fleet is vulnerable to siphoning, side fueling, cloned fuel cards, and other shady behavior, Fleet Managers should of course watch out for unusual purchases such as multiple pump transactions in quick succession, irregular fueling locations, and purchase quantities that exceed a unit's actual tank capacity. Some of these occurrences may have perfectly acceptable explanations and reasonably easy fixes—for example, a driver who fills up his truck and the equipment it's towing with the same gas card, contrary to policy of using cards unique to each asset.

But other situations require a bit more detective work when reviewing mileage and odometer readings in SAP. Dramatically lower fuel economy could be due to hauling something heavy—or an indicator that fuel purchased with the company's card may be going into another vehicle. A new odometer read that's lower than the prior read could simply be an inadvertent transposition error—or a bungled attempt to hide an unauthorized fuel purchase. The HPC Fleet Management template for SAP pinpoints these anomalies, such that Fleet Managers can interpret the data within the full context of their departments: who's driving, which vehicle, where and for what work? And in our experience, that's key: while the data in SAP is foundational, results come from the analysis of it and a real understanding of staff behavior.

Rochester Public Utilities optimizes SAP FERC with HPC America

Earlier this year, we wrote about our FERC optimization work at RPU. Our latest customer success story describes how the Minnesota utility company now enjoys streamlined FERC reporting and automated assigned of costs to FERC accounts; a more accurate way to calculate actual labor charges; and a consolidated process for managing Fleet costs and equipment charges. RPU's enhanced regulatory reporting on SAP utilizes HPC Utility Financials Accelerator, which is certified by SAP as powered by the NetWeaver technology platform. Read the complete case study.

Cost adjustments in SAP - fast, high-integrity corrections with HPC JETS

What does your organization do when employees charge to the wrong order number, or when project managers need to move labor from one cost center to another? After struggling to identify such problematic charges, the typical solution is often a lump sum journal entry by the accounting department, which sacrifices detail for expedience.

The HPC Journal Entry Transfer Solution (JETS) eliminates all of the shortcomings of basic, corrective journal entries in SAP. Now in production at two utilities, HPC JETS is a NetWeaver-based solution that enables authorized SAP users to move designated transactions from one order or cost center to another, automatically generating fully auditable documentation of the adjustment.

Learn more about HPC JETS or contact us for a product demo.

SAP FERC project updates from customers

We recently heard from two utility companies that HPC has been advising on SAP regulatory reporting enhancements. One will be making HPC Utility Financials Accelerator a regular part of the monthly closing cycle, utilizing UFA's real-time reporting features with December 2012 results. The utility expects that this improved reporting process will free up extra time that the accounting department can use work on other projects.

Another customer just went live with SAP FERC configuration improvements we've made to their classic FERC module, including the implementation of some UFA functionality. Before, this utility only generated regulatory reports once a year, due to complex, time-consuming processes outside of SAP. Now, they can easily run FERC reports monthly, shortly after each month-end close. Everything stays in SAP, and the finance team can drill-down through many levels of each transaction. As part of this project, the utility modified its business process to require that all charges be applied to internal or PM orders, instead of cost centers. In a future blog post, we'll look into the organizational change management that facilitated this significant transition.

What's noteworthy about both of these customers is their shared commitment to getting the most out of the FERC module and legacy General Ledger. Neither is planning an SAP New GL migration at the moment. While we certainly recognize the New GL's benefits (and recently announced a real-time FERC solution for it), HPC strives to be as solution-agnostic as possible. Classic FERC, no FERC, new or old GL, it's all good in our books.

Case Study: HPC Real-Time FERC Solution at We Energies

We Energies (WE) provides electric service to 2.2 million customers in portions of Wisconsin and Michigan's Upper Peninsula, and maintains more than 45 thousand miles of electric distribution lines and over 350 substations. In 2012, WE wanted improve its regulatory reporting processes in order to satisfy regulators more easily, and to facilitate its eventual migration to the SAP New General Ledger. WE selected HPC America's Real-Time FERC Solution for the SAP New GL, which enables utilities running the New GL to generate real-time regulatory reporting data without using the "classic" FERC module. Read the complete case study to learn more about the benefits WE gained from HPC's latest groundbreaking FERC solution for utilities on SAP.

SAP FERC enhancement project, part 2

A couple months ago, we wrote about a new SAP FERC enhancement project that HPC had begun. We've just completed user acceptance testing in the mock client, successfully resolving the utility's FERC reporting issues. We're now gearing up for the launch of the new solution at the start of 2013.

At the core of our solution is a new way of including cost accounting transactions, mainly for priced labor and related burdens for benefits and payroll taxes, to support the FERC balances. This new approach to FERC reporting aligns the CO reports used by internal managers with the external reports used to support regulatory filings, thus providing one version of the truth for all stakeholders.

Part of our remaining work will integrate HPC Utility Financials Accelerator with some legacy programs that the customer has had in place for FERC reporting since their initial launch of SAP in the late 1990's. We've designed and volume tested a solution that will make their FERC requirements easier to meet as they apply for ISO status in the next year or so.

Thanks from SFSU student about HPC presentation

Last week, HPC CEO Jerry Cavalieri presented to the MBA candidates at SFSU. We received kind thanks from one student, who wrote, "It was such a great pleasure having you as a guest speaker in our Information Systems class last evening at SFSU DTC. You presented an interesting, rich, and invaluable presentation about Enterprise Resource Planning (ERP) and the significant contribution it can make to business processes and ROI. Thank you!"