Bp's Budget Management And Its Revelation Of PetroChina

Overall budget is the quantity performance of an enterprise in certain period for the goal of production and operating activities, also called total budget. It is the comprehensive plan of an enterprise, including management budget and financial budget. The categorization of budget compiling method is different according to difference in standards and when compiling budget, we should choose the compiling method according to actual conditions. It includes regular budget and flexible budget, incremental budget and zero base budget, fixed base budget and trundle budget.Financial management is important step for Chinese petroleum enterprise management, and budget management is the core of financial management. In current stage, the overall budget management of China Petrol is made up of two basic modals: budget of the headquarters of the group company, and the budget of each member companies. The budget adopts the compiling procedure of upper and lower layer combination, specifically called"two lower levels and one upper level, combination of the upper and lower level". The main problems existing in China Petrol is that: the budget system is weak, budget management pays two much attention to"humanity", and budget management is"not comprehensive".BP is formed through the restructuring of the former Britain Petroleum, Amoco, Arke, and Castrol, etc. and it is one of the biggest petrol group companies in the world. BP pays much attention to planning, and deems planning as the core of each step in the operation of the company. Led by the planning department, the company will compile the strategic planning of the company together with the business department, and then the annual work plan. Annual work plan is the basis for compiling annual budget. The features and advanced attributes of BP budget management are shown in the following aspects: compact overall budget management, strong inflexibility of budget implementation, concern about the detailed management of budget, and SRU mechanism.China Petrol should borrow from these practices of BP, and integrate budget management of enterprise into the development strategy of the enterprise in order to implement the strategic plan of the enterprise, and join the long-term and short-term goal together. Especially we should make the budget of China Petrol become the important means for implementing strategic goal of an enterprise in order to decrease the operational risk of state-owned assets, and enhance the management efficiency and economic efficiency of the enterprise. In the development towards authorized operation stock-holding Group Company of China Petrol, under the mode that each specialized operation company develops coordinately, studying, discussing and establishing an overall financial budget system applicable for the conglomerate management need of enterprise is the need for management innovation of an enterprise, but also the need for promoting financial system innovation of an enterprise. Through the analysis of China Petrol's promoting of overall budget management, we can see that practicing"all-staff"and"comprehensive"assessment is the key for enhancing the budget management level of China Petrol. Comprehensively analyzing the scientificallness and completeness of BP budget management system and budget assessment link is the most important link for maintaining the whole budget system. At the same time, due to the special humanity background and historical background of state-owned management, the"strict assessment, hard implementation"always has certain deviation in the specific implementation process. In this management process, we should maintain certain inflexibility in the aspects of management organization, budget implementation and budget assessment of the overall budget in order to enhance the implementation force and restriction force of the budget management, and ensure the effective implementation of the overall budget plan; on the other hand, we should maintain certain degree of flexibility in the aspects of decomposition of overall compiling, budget compiling and budget target and the timely adjustment of budget, integrate the reality, enhance the flexible adjustment ability and treatment ability of uncertain factors in budget implementation process.In order to further study the problems on budget management of China Petrol, considering the above analysis, the writer will put forward the specific plan for the amended budget management system of China Petrol Northeast Sales Subsidiary Company (briefly called"Northeast Sales Company"in the following part). We should bring into play the restricting, controlling and motivating role of budget management in production and operation according to the features that the oil sales volume in the governed area of Northeast Sales Company is big, network distribution is broad, and the environment of international crude oil market in recent years is complicated, and based on the financial management system of operational mechanism of"one comprehensive, three concentrations", and according to regulations on interim measures of budget management of stock companies and based on the reality of the company, we formulate the"Measures of China Petrol Northeast Sales Subsidiary Company on Budget Management". We should fully mobilize the activity of provincial companies according to the principle of responsibility according to level, combination of responsibility and right, strengthen the budget adjusting ability of provincial companies, and form the budget management system with provincial companies as the main part. The Northeast Sales Company should reasonably decompose budget targets and ensure the implementation of the targets according to the principle of"bottom up, up bottom". We should study the establishment of quantitative budget model to ensure the scientificallness of budget decomposition and fairness, openness and justice, especially the scientific and reasonable quantification and decomposition of cost and expense targets. We should strengthen the process control of budget, bringing into play the controlling and supervising role of budget management, and make the budget management work gradually transit from stable management to dynamic management. The active role of flexible mechanism of budget should be embodied in the operational work of Northeast Sales Company, especially for emergent accident that has big influence on the operational activity. The company budget committee should take into consideration of the above actual situation of the company, and adjust the budget targets in the beginning of the year in order to motivate the operational activity of the subsidiary company, and gain good operational performance. We should establish budget target assessment system and fully carry out budget performance targets. Budget management and assessment work is closely related, and the two mutually complement and promote each other. In order to ensure the realization of budget targets, the company should continuously perfect budget target assessment system, improve motivation mechanism, stick to the principle of"strict assessment, hard implementation"and strengthen assessment force.