Cash/Production Revenue Receipts
We recommend using the Cash/Production Revenue Receipts as the primary method of entering well-related revenue. This allows you to record all revenue received from the purchaser for several wells on one receipt from one check. It can cover as many wells as necessary. This assumes you are entering net production amounts.
The first three rows of fields are basic information for the receipt. The second two rows in the yellow box are where you enter each detail line that is on the receipt. Once you tab through the Allocate All To field, the line of revenue will drop to the bottom, and you will be reset at the well ID, ready to enter any additional lines of revenue. Once all lines have been entered, the receipt can be saved using the Save Button on the toolbar. Before saving, make sure the total deposit amount at the top of the matches your actual check amount.
If you need to edit a detail line, you can do this by double clicking on it. The detail line will then move to the top where you can edit it. Be sure to drop it back down to the bottom and save when you have finished editing the detail line.
Production Revenue Receipts tab
Non-Production Receipts tab
How to enter a deficit statement received from a purchaser
Editing detail lines
Received From
This is the entity from which you are receiving this money. Choose the purchaser by typing in the ID, or by choosing the entity from the lookup list by clicking on the Received From button. This lookup list will display purchasers, vendors, and customers as defined in the respective s.
Group Deposits
Mark this option if you want to group this receipt with other receipts and then use the Make Deposits to deposit them into your cash account, choose Group Deposits. The system will post the receipt to the undeposited funds account. This account is set up as a Current Assets type account in the chart of accounts and then specified as the Undeposited Funds Account in the Preferences for the General Ledger.
Deposit To
Mark this option if you want to post the deposit directly into a specific account instead of grouping deposits.
When the "deposit to" option is marked the field beside it will be enabled for you to specify what account the deposit should be posted to. Generally this will be a checking account because you are receiving a check. If you are receiving a statement from another operator that had more expenses than revenue then you will select an A/P account instead of a checking account. In order to select an A/P account here it must be setup on the chart of accounts window with a "current liability" account type and have either "A/P" or "payable" in the description.The selected account will be debited. The offset (credit) to cash for production receipts will be the Revenue Clearing Account specified in the Rev Dist/JIB Posting preferences . The offset to cash for non-production receipts will be the account specified for each detail line on the non-production receipts tab.
Post Date
The post date is used for posting the receipt to the G/L and as the date for the well income entries.
Acct Date
The date of the receipt being input. This would be the date on the check, or the date the check was received.
Check No
The check number of the revenue check that is being entered.
Total Amount
The total amount of the production receipt. This is not a data-entry field. The software will automatically calculate this based on the detail lines that have been entered for this receipt.
Production Revenue Receipts Tab
Well ID
The well for which this line of revenue is being entered. It can be typed in or selected from the lookup list.
Well Name
This will automatically fill in based on the Well ID that was specified.
Type
The type of revenue for which this line is being entered. If you are entering taxes that have been deducted from the check before you receive it, you can pick the appropriate type of tax. You don't need to enter taxes as a negative amount, as the software will automatically subtract taxes from your receipt. The drop-down list also contains all of the expense codes that have been defined in the system. If expenses have been taken off of this check before you receive it, you can add a line item for each expense, making the amount negative. Since it is negative, it will reduce the amount of the deposit by that amount, and will create an expense entry for this well. Expenses will be charged to the default expense class for the Expense Code selected.
NOTE:
TAXES: If you are entering a tax make sure that the taxes tab of the Well Information is marked that the purchaser withholds the tax you are entering. If this option is not marked a message will appear when you tab out of this field. The message will ask you if you want to mark the option. If you choose yes, it will mark that option for you.
We do not recommend entering taxes for a well that is associated with a tax table on the well information .AFE EXPENSES: Do not enter expenses that are marked as an "AFE Code" on this unless the "Allocate Expenses to Owners" option is marked in the AFE Preferences.
# Units
The amount of units on which you are being paid. Enter the Net units or just the amount of units that you are paid for.
If there are any owners in the division of interests marked as directly paid, or that are "Dummy Owners," the system assumes that the money you are entering is the net amount AFTER those owners have been paid. Accordingly, it will gross up the units and money that you enter here to make up for the directly paid share of the revenue.
Gross
Sometimes you only know the gross units, however, instead of the net. If this is the case, you can check the "Gross" box above the units. That tells the system that the number that you are entering is already grossed up, and not to do it again. It will still gross up the money entered, but will leave the units as how they are entered. If you don't have any owners in the division of interests marked as directly paid, the system will leave the units and total income the same as what is entered here. The system will also gross up based on the percentage held by the Dummy Owner in the well's Division of Interest. For more information you can refer to the Grossing up section.
You do not need to mark this option if you do not have any Dummy or direct paid owners in the well. This option should NOT be marked if you are entering the net units you are being paid on.
Price
The price per unit that you are being paid.
Total
The total income for this type of revenue. If the units and price are both entered, the system will calculate the total for you. If this amount is incorrect, it can be overtyped. If either the price or the units are left blank, and the total is entered, you will be given the option of calculating the missing field.
Prod Period
The production year and period to be associated with this line of revenue. If left blank, this income will be held in the allocation file to be released to the current run at a later time, using the Allocate Held Revenue , found under the Tasks Menu. If the Miscellaneous preference "Send All Revenue and Expenses to Allocation Files" is selected, the system will send the revenue from this entry to the allocation file for release regardless of whether the production period is entered or not.
Period Range
The range of time that this well was producing for the given production period. It is entered in MM/DD format. This information is not critical for software use.
Days On
The number of days that this well was producing for the given production period. If the Miscellaneous preference "Calculate Days on From Period Ranges Entered" is selected, the system will fill this in for you. Otherwise, it can be entered manually. This information is not critical for software use.
Allocate All To
If a single owner in this well should receive all of this money instead of a proportionate share based on the division of interests, you can select that owner here. It will give all of this line of revenue to the owner selected, and that revenue will only show on that owner's statement. Only owners who have been defined with an interest in this well in the Division of Interests will be able to be selected.
If the well entered for this detail line is marked as an investment well then the "Allocate All To" field will be replaced with this field. You will need to choose the type of interest that this detail is for. It can be a Royalty, Override or Working Interest.
Non-Production Revenue Receipts Tab
Non-production revenue receipts are entered using the same as production revenue, only using the other data entry tab. You can mix production and non-production entries on the same receipt, if needed.
Account
The account that will be the offset for the cash entry. This account will be credited for the amount of the detail entered. The name of the account will be displayed below the account number when the account is chosen.
Description
The description of what the revenue is being received for.
Well/Lease
Any well or lease ID that might be associated with this receipt. This is for REFERENCE ONLY. Revenue entered on this tab does NOT get processed by the revenue distribution.
Dept
Any department associated with this receipt. Entering a department will allow tracking of journal entries by department.
Amount
The amount of this item.
How to enter a deficit statement received from a purchaser
Enter all revenue and expense on this window. Select the desired liability account from the account pulldown menu in the upper right corner of the . This will allow the revenue to be recognized on the well, while creating a liability to pay the deficit incurred. This receipt will not create a deposit within the check register. The receipt total will credit the liability account selected. This deficit statement will not create an outstanding bill even if the Accounts Payable account is selected, and will have to be paid through the Cash Disbursements .
In order to select an A/P account here it must be setup on the chart of accounts window with a "current liability" account type and have either "A/P" or "payable" in the description.
Entering a Production Receipt with More Expenses than Revenue
Enter all revenue and expenses on this window. The total amount field will be a negative amount. Change the account to be an accounts payable type of account.
Entering a Production Receipt That Has More Revenue Than Expenses, But Part of the Revenue was Applied Toward a Previous Deficit
Enter all revenue and expenses on this window using a checking account. Then make a manual journal entry to debit the A/P account and credit the checking account for the amount of the deficit that was deducted from the check.
Entering a Production Receipt That Has More Revenue Than Expenses, But All of the Revenue was Applied Toward a Previous Deficit
Enter all revenue and expenses on this window using the A/P account. The total amount field will be for a positive amount. This will reduce the balance in the A/P account.
Paying a Production Receipt That Had More Expenses Than Revenue
If you have to pay the negative statement, use the Cash Disbursements to create a check to pay the vendor. Make sure that the check debits the A/P account. A vendor check will not be automatically created.
Entering a Production Receipt Where Only One (or a few) Well Carries It's Own Deficit (Expenses not deducted from this check)
Enter all revenue and expenses on this window like normal. The total amount field will be for less than the check actually was for. Then switch to the Non Production receipts tab and enter a negative line for the amount of the deficit this run. You can select an offset account to store these balances. (You will have to create an offset account use first) This will make the overall check total match the actual check.
Paying a Production Receipt Where Revenue Covers The Deficit of Only One (or a few) Wells
If you have to pay the negative statement, use the Cash Disbursements to create a check to pay the vendor. Make sure that the check debits the A/P account. A vendor check will not be automatically created.
Edit a Detail line
You can edit a detail line by double clicking on it, which will bring it back to the top. After the edit has been made, you can press the tab key until the detail drops back down. You can also view the Corrections topic for more information on how to make corrections in the software.
Delete a Detail line
You can delete a detail line by double clicking on it to take it to the top then pressing the save button. When you save a receipt it will only save the detail lines that are in the bottom, so the detail line will be deleted if it is not in the bottom when you resave.
You cannot edit a production receipt after it has been processed on a run closing.
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