New Profit Centers

We may be creating another problem.

I'll have Heather set up a meeting for next week.

thanks

bob

---------------------- Forwarded by Bob M Hall/NA/Enron on 03/29/2001 11:34
AM ---------------------------

Enron North America Corp.

From: Rita Wynne @ ECT 03/29/2001 11:05 AM

To: Bob M Hall/NA/Enron@Enron
cc:

Subject: New Profit Centers

Bob,

Per our conversation - on this past Tuesday, a group met from VM, Gas Acctg.
and East Risk to discuss the recording of the 12 east desks and 7 central
desks to SAP. Effective with March flow, each desks for Central and East will
record to its own profit center in SAP (the wellhead desks and Texas were
done in Feb.'s g/l). According to Gas Acct., they will calculate UA for each
of the profit centers (19 in total). As we discussed, VM does not have the
appropriate Unify reports or manpower to support this level of accounting at
this time and for this month will continue to tie UA4 out as we have in the
past using our same reports - Gas Acct. will have to sum their side of the
UA4 calc. to match us. With the foresight of eventually going to profit
center level accouting and reporting, there will need to be significant
changes to our current back end systems and processes to handle this lower
level of reporting. I believe the flash is already being done at the
different profit centers, but all the downstream groups are still performing
their analysis at a more consolidated level. There were discussions in the
meeting that OA would not go to this lower level, but I am of the opinion
that we all need to be consistent in our analysis and reporting across the
organization - so if this is the path we take, then everyone's process will
need to be able to handle this level of detail. Of course, no decisions were
made in our meeting, and as I stated, for now, VM's process will remain
unchanged for this month. Please let me know if you want to discuss
further. Thanks!