Owner Information
The owner information window is used to set up the name, address and processing information for each owner that holds an interest in a well.
The basic information and options for each owner is just setup once on this window regardless of how many interests they hold.
When opening the owner information window for the first time after setting up a new company, the window will appear to be grayed out and disabled. This just means that there are no owners in the file yet to display. Click the New button on the toolbar, and the window should be enabled and ready for entering records. After entering each owner, click the Save button on the toolbar, before clicking on the New button to add the next record.
Choose a tab to view:
Owner ID
Enter the owner ID of this owner. An owner ID is a 1-10 alpha-numeric code used to reference an owner. Be consistent when choosing an ID for your owners because many reports are sorted by the owner ID. Use any alpha numerical scheme when setting up your owners.
We suggest making the ID at least three characters long. If you start with a number like "1", then be sure to pad it with zeros so that the ID would be at least "001". You can start with a character like W001 or ROY001 to represent what type of interest the owner holds. If you don't want a new coding system to remember, then it can be real nice to use a part of the owners name. Consider using the first five characters of the last name then the first three characters of the first name.
Name
Enter the name of this owner. Use whichever format is most convenient for you. Limit of 40 characters.
Second Name
If an owner has multiple names, the owner name can be continued here. This can also be used if the owner's name is so long that it doesn't fit in the first name field.
Dummy Owner - An owner that acts as a The "Dummy Owner" option can be used to create an owner to represent any unoperated interests. This owner will be used as a placeholder for any interests that you are not responsible for. This is generally used by third party operators that have an interest in a well and then split that interest among other investors. The unoperated interest that you don't have can be associated with a dummy owner so that the DOI deck will add up to 100%. Then each of your investors percentages will be setup with their 8/8th percentage in the well instead of the percentage they have of your interest.
In past versions the dummy owner was recognized by having the word 'Dummy' in the owner name. This is no longer the case since we have an option for it now.
Address Information
Enter the owner's address including city, state and ZIP code. Limit of 30 characters on the address lines, 20 characters on the city, two characters on the state and 10 characters on the ZIP code.
Country
The country of this owners Address. This two digit code is assigned by the IRS and is used when creating the 1099 file electronically. For a list of current codes, you can search the IRS website for the "Foreign Country Code Listing for Modernized e-File (MeF)"
Phone and Fax
Enter the owner's phone and fax numbers.
Email
Enter the owner's e-mail address so that you can email reports and statements to them from within the software. You can include multiple email addresses by separating them with a comma.
Chk Memo
Enter a memo that will print in the memo area on checks. This can be an account number or some other useful data to be shown on the check printed for this owner. Limit of 30 characters.
Sort Field
The variation of the owner's name used for sorting purposes. The name listed here is used for the lookup lists within the software only. The only reason a different name would be used here is so that you can find someone more quickly when looking for them on one of the lookup lists within the software.
This is usually filled out for you automatically based on the Name that was entered at the top of this window. When the name was entered, you would have been asked if you want to reverse the name for the sort field. This can be helpful for individuals, because they will then be listed last name first on the lookup window. Company names will not typically be reversed. You can also enter in something completely different in a case where someone's offician name is something different from what you know them by. You can enter the name you know them by in the sort field if you would like.
NOTE: The software will not let you save an owner who has a sortfield that is contained in another owner's sortfield. For example if your owner's sortfield is "Smith, John" you would not be able to add another owner with just "Smith" in the sortfield because "Smith" is fully contained in "Smith, John."
DOI Info
This button will bring up another window that will show all of the interests that this owner currently has. This is just a reference. To add or modify an interest use the Division of Interest window.
Name
The name that will print with the Second Address.
Secondary Address Information
Enter the secondary address information if this owner's checks and reports should be sent somewhere other than his primary address. (See Use Secondary Address below)
Country
The country for foreign addresses. This is needed for electronic 1099 filing when an address is not located in the U.S. If left blank, it is assumed it is a U.S. address.
The two digit country codes can be found on the IRS website by searching for the "Foreign Country Code Listing for Modernized e-File (MeF)". It is assumed the address is in the U.S. if it is left blank.
Chk Memo
This is the check memo that will print on owner checks whenever the Use Secondary Address option is chosen.
Tax ID
Enter the owner's tax identification number or Social Security Number. Limit of 14 characters.
Tax ID Type
Select the type of tax identification number that is represented. It will either be an Employer Identification Number (EIN) for a business, or Social Security Number (SSN) if it represents an individual. This information is needed when transmitting the 1099s electronically to the IRS.
Terms
Enter the terms for this owner's joint interest bills. Terms will not apply to net owners which have the expenses deducted from the revenue before checks are sent out.
Minimum Check Amount
If this owner has a different minimum check amount than the global check amount, (set in Miscellaneous Preferences), enter that minimum amount here. If the owner's disbursement amount doesn't at least equal this amount, it will be carried forward in the suspense file until multiple disbursement amounts achieve the minimum check amount. This minimum check setting overrides the global minimum check setting for this owner. If this amount is left at zero, the system will assume it has not been set, and will look at the Miscellaneous tab of the Preferences window to get the minimum. If this owner should always receive a check, regardless of amount, the minimum can be set to $0.01.
Finance Charge
The finance charge specified here will be used for this owner when applying finance charges to invoices using the "Generate Finance Charges" window. This will be charged against invoices that were entered on the Sales/Invoicing window. You will only be able to select finance charges that have been setup on the "Finance Charge Codes" window.
Disbursement Frequency
Choose how often this owner should receive a disbursement check when a revenue run is closed.
Monthly - Owner will receive a check every month.
Quarterly - Owner will receive one check every Quarter. A check will be created for the owner in March, June, September, and December.
Semi-Annually - Owner will receive two checks every year. A check will be created for the owner in June and December.
Annually - Owner will receive one check every year in December.
Put Each Well On A Page On Owner Statement
When printing this owner's activity on either the Owner Distribution or Joint-Interest Billing Statements the activity for each well will print on a seperate page when this option is marked.
Use Secondary Address
Check this box if checks and statements for this owner should be sent to the address specified on the "Second Address".
The software applies this setting at the time a check or report is printed.
Note: that the "Don't Use Owner's Primary Name With A Secondary Address on Checks" option in the check printing preferences can also affect the way this option works. If it is also marked then the name specified on the 2nd address tab will be used for the owner's name.
Only Send Check To Secondary Address
Marking this option will send the checks to the address specified on the "Second Address" tab while sending the statements to the address specified on the "Address" tab for this owner.
The software applies this setting at the time a check or report is printed.
Note: The "Don't Use Owner's Primary Name With A Secondary Address on Checks" option in the check printing preferences can also affect the way this option works. If it is also marked then the name specified on the 2nd address tab will be used for the owner's name on the check only.
Print Owner's Deficit Statements
Check this box if deficit statements should be printed for this owner.
Owner is Exempt From Severance Taxes
Enable this option for an owner to exempt them from all severance taxes. This will exempt the owner from all taxes and reduce the taxes due from each well the owner is in.
Owner On Hold
Check this box if this owner should be put in "hold" status. When an owner is in "hold" status, all activity processed while the owner is in hold is entered into the suspense file. When this owner is no longer in "hold" status, all suspense entries will be disbursed during the next processing run.
Send a 1099 to this Owner
Check this box if this owner should receive a 1099. If this box is not checked, this owner's information will not come out with any 1099 report or magnetic media.
Transfer This Owner's Activity to G/L
Check this box if this owner should have journal entries created for them when the run is closed instead of creating a check or JIB receivable. This option is most commonly used for your company record, so that a check isn't created for your company. We recommend only using this option for the operator's owner record.
Don't Create a Check Stub for this Owner
This option is most commonly used for your company record, so that a check isn't created for yourself.
Owner Uses Online Reporting
Mark this option if this is an owner that will be accessing his information online. This will only be effective if you are using SherWare's online reporting capability.
Owner Statement Type
This option allows you to print the Owner Distribution Statement, print the Owner Stub Statement, and email the Owner Distribution Statement to different groups of owners without running each report multiple times for each range of owners that you need.
Regardless of how this option is marked you can still view each report for any owner. The Owner Statement Type will only be referenced on each report if you specify on each report that you want to only view it for one of these owner types.
If you are not sure which Owner Statement Type to select then use the "Detail Statement".
Detail Statement - When printing the Owner Distribution Statement you can mark the "Only Owners Marked for Detail Stmts" option and it will only print statements for owners with this statement type.
Summary (Stub) Statement - When printing the Owner Stub Statement you can mark the "Only Print For Owners Marked To Get Summary Statements" option and it will only print statements for owners with this statement type.
Email Detail Only - When emailing the owner distribution statement you will mark the option to "Email Statements To Owners". When that option is marked a message will appear asking you if you want to "Send Statements only to owners marked as "Email Statements Only"?". If you choose yes then it will only email statements to owners with this statement type.
Subject to Backup Withholding
Check this box if the owner is subject to backup withholding. The IRS requires that a withholding of 31 percent be deducted from checks sent to owners that you don't have a valid tax identification number for. The number entered in this field is a percentage. 31 percent should be entered as "31.00." This percentage will be based on the Net revenue (revenue after expenses are taken out) for the run. The amount withheld will post to the "Backup & Tax Withholding" account specified in the Rev Dist/JIB Posting Preferences.
Use the Owner Notes page for any free-form notes concerning this owner. The notes are unlimited and can be used to store any other pertinent information for this owner.
The Documents tab allows you to associate files with this record and then view them from within the software at any time.
This capability is offered as an optional module. You will not be able to see this tab unless you have purchased the Document Management module
Link Doc:
A new document can be associated with this record by clicking on the "Link Doc" button. You will be able to browse to the desired file. After selecting the file it will ask you to specify a description for the file. Once a document is selected it will be listed to the left with the description that you typed in.
View Doc:
You can view a document associated with this record by selecting the document from the space on the left and then clicking this button.
Remove Doc:
A document can be removed from the list by selecting it then clicking on this Remove Doc button.
Show Paths:
Each stored file will be listed using the description that you keyed in for it when it was linked. Clicking on this "Show Paths" button will change what is displayed so that is lists the full file path to this file instead of the description.
Treeno:
The Treeno button allows you to access and save documents on the cloud. The capability to store documents on the cloud is only available if you purchased the optional "Cloud Document Management" Module. You will not see this button unless you have purchased that module.
The Bank Info Tab is where you enter this owner's Bank Information if he receives his income with Direct Deposit. If you do not have the Direct Deposit Module you will not have this capability and this tab will be hidden.
Direct Deposit
Mark this box to mark this owner as a direct deposit owner. This will cause the system to create an ACH entry for this owner instead of creating a check when a revenue run is processed.
If the Use Fedwire option is marked, then it doesn't matter if the Direct Deposit option is marked or not.
Bank Transit No
A nine digit bank code, used in the United States, which appears on the bottom of negotiable instruments such as checks that identifies which financial institution it is drawn upon. This code is also used by the Automated Clearing House to process direct deposits and other automated transfers. This transit number is for the owner's bank.
Bank Account
The owner's account number.
Bank Name
The name of the owner's banking institution.
Use Fedwire
This is used is used when you have to pay the federal government for royalties. When marked, the fields in the Fed Wire Info section will be enabled.
You can reference the "Instructions and Examples for Fedwire Payments" document provided by the United States Department of the Interior Office of Natural Resources Revenue for more information.
Payor Code
A five character code assigned by the ONRR. This must match the payor code on on Form ONRR-4430, Solids P&R (ONRR-4430), or Invoice. Only one payor code per payment.
PAD
An 8-12 character field that represents the Payor-Assigned Document, Invoice, PAR or Lease #. PAD/PAR #'s may be up to eight characters and Invoice #'s up to twelve.
Fund Code
A three character code to represent the Indian Distributee/Fund Code. This is used for an Indian lease payment or left blank for a Federal lease payment.
Fed or Indian
Choose Federal or Indian to specify which this owner represents.
Unknown Owners - If you have any interests in a well that are currently unknown but you will be responsible for tracking the revenue and expenses for this owner you can create a general owner with a name that signifies he is unknown. Put this owner on hold. This will then accumulate the interest for this owner in suspense. When you figure out who the owner(s) is you can transfer the specific Interest to the correct owner from the Transfer Division of Interest Utility. You can assign any unknown interests to this owner from any well as the Utility will allow you to just transfer a specific interest in a specific well if necessary. All of the past history can be transferred as well so the owner will be allocated the past funds that were on hold.
Dummy Owner - An owner that acts as a placeholder for non-operated interests in the well. Any owner with the Dummy Owner option selected will trigger the software to handle the owner as a Dummy Owner. View the Dummy Owner Topic for more information.
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