Fixed Well Expenses

Fixed expenses are those like pumping and administrative fees that are the same each period. This window allows you to set them up as a template. Once you have this template of fixed expenses setup you can release them each period in one step under the Tasks menu with the Release Fixed Expenses window. When the template is released they will be added to the well expenses by well window and displayed with red text.

Adding a fixed expense to the template:
This window works a little different than other windows in the software. Each well already has a record created for it so you don't have to press the new button. Simply navigate to the desired well and starting entering expenses. The detail of the expense will be entered on the top half of the window. Continue tabbing through the fields as you enter information until the detail line is moved to the bottom. If you will be having the same fixed expense for other wells then you can click on the box in the far left column to select the expenses to copy and then use the "Copy Expenses" button to copy them to other wells.

A template for the Well Expenses by Well Window:
The fixed expenses are a template for the Well Expenses by Well window. When you "Release Fixed Expenses" it is copying the information from this template, and pasting it onto the Well Expenses by Well window. The posting and processing of these expenses is then exactly the same as if you manually entered each of them directly on the Well Expenses by Well window.

When to release Fixed Expenses:
Fixed Expenses can be released at any time. Generally they will be released once a month. It is a good idea to include this release in a routine that is done every month so that you don't forget to release them. Most SherWare users include the release of fixed expenses as their first step in the run closing process. These will be released under the Tasks menu by choosing "Release Fixed Expenses". This will allow you to specify a date, production period, and what wells you want to release the fixed expenses for.

Backing Out Fixed Expenses:
If a mistake is made with the release of Fixed Expenses, they can be reversed with a utility under the Utilities menu by choosing Back Out Fixed Expenses. This will not affect the template, but will delete any fixed expenses that have been released that have not yet been processed.

Vendor Checks:
Since the Fixed Expenses are a template for the Well Expenses by Well window, the expenses will not process until a run is closed. The run closing will automatically create the check to pay the vendor. This means that you will not be able to pay the vendor until the run is closed.

Vendor Posting:
The biggest advantage of the Fixed Expenses is that the expenses charged by your company can be posted directly to an income account instead of having to create a check for yourself. If the vendor posting is setup for the vendor associated with these expenses then the amounts processed will automatically post to an income account for you.

Fixed Expense Vs. Recurring Bills:
If you will not be able to wait until the run closing to pay the vendor then a Recurring Bill will be a better option. The Recurring Bill is a template for the Enter Bills window and will allow you to create the vendor check immediately or at any time.

Well ID
The Well ID of the well to which these expenses apply. Look up the Well ID by pressing F2 or the Well ID button. The Well Name will fill in with the well's description when the ID is chosen.

The two digits at the top of the window to the right of the Well Name field indicate the group that this well is associated with.

Expense Description
The expense Description of this expense. Lookup the code and description by pressing F2 or by clicking on the expense description button. The code for that expense code will be filled in when the description is chosen. This will be displayed in the Code field. Do not setup an expense as a fixed expense if it is marked as an AFE code.

Vendor
Enter the vendor that this expense is paid to. Look up the vendor by clicking on the Vendor button or by pressing the F2 key. The vendor's ID will be displayed above the Vendor field after the vendor is chosen.

Total
Enter the total amount of the expense for this well.

BBL
Enter the number of barrels that correspond to this expense. This is used for salt water hauling purposes. A number of barrels will not be able to be entered unless the expense code contains one of the following: "H2O," "Salt," "Brine" or "Water." If you do not wish to track the number of BBLs for this well associated with the corresponding expense codes, you may leave the BBL field empty.

Memo
Enter a memo for this fixed expense if needed. This is a note that is stored with this fixed expense amount on the well. It will not be displayed on the owner's statements when this fixed expense is released.

Ref ID
Enter a reference identification for this expense.

Class
Choose the expense class you want this expense to be charged to. By default the expense will be allocated to the owners within the well based on the DOI class chosen for this expense code, however, if you want this particular fixed expense to be allocated based on a different expense class, you can choose it from this pulldown menu.

Allocate All To
If this expense should be allocated 100 percent to one owner, enter that owner's ID code here. The code can be chosen from the list of owners by clicking on the Allocate To button or by pressing the F2 key. Only an owner who is currently defined with interests in this well in the Division of Interests window can be chosen here.

Save Detail
To save the details that you just entered in this window, click the Save Detail button to drop the information down to the grid below.

Delete Detail Line
Clicking this button will delete any records for this well that have a check mark in the box located in the first column. This will only delete the expense from the template of fixed expenses that are setup and will not affect any expenses that have already been released.

Edit Detail Line
Clicking this button will take the selected detail line back to the top of the window so you can edit it.

Copy Expenses
Allows you to copy fixed expenses from one well onto another. Mark the expenses you want to copy in the first column then click on this button. A separate window will appear titled "Select Wells To Process". Click on a well you would like the expenses to be copied to then click on the > arrow to move it from the available wells section into the selected wells section. Click ok and the expenses will be copied to the selected wells.
Total

NOTE:
When You enter a Fixed Expense it will always use the Expense Code as it was when you first entered it into the Fixed Expense window. If you change the DOI class that the Expense Code is assigned to, the Fixed Expense will not be updated to be assigned with the new class. You will have to go through and re-select the expense and save for the change to process.

Think of this window as a page in a book with each well having one page. To move between wells you will need to use the next and previous buttons to "turn pages." Setting up the fixed expenses in this window does not charge the expense to the well. It simply stores this amount of fixed expense for the well in the database. The fixed expense will be charged to the well when you Release Fixed Expenses.