Authorization for Expenditures(AFE)

The AFE capability is an optional module so your program may not have the ability to process AFEs. Contact SherWare Support if you are interested in adding this capability.

An authorization for expenditure (AFE) is a document that shows an investor what the costs are estimated to be for a particular well project. It will then update with the actual costs as the project develops for a comparative report. AFEs are defined here .

AFE Number
A unique identifier for the AFE. The AFE number can be alpha-numeric and up to 10 characters. The same AFE number cannot be used twice.

Well ID
The well ID of the well this AFE is associated with.

Program
The program code of the program this AFE is associated with. The program must have been already defined in the Programs/Partnership Information form. Programs are defined by choosing Programs/Partnership Information from the Maintain > Disbursement & JIB Files menu.

Remarks
Any additional comments associated with this AFE. The remarks entered here can appear on the AFE reports if you choose to include them when running the reports.

Start Date
The initial date of the AFE. Any AFE expenses entered with a date prior to this one will not be included in the AFE for actual costs.

End Date
The last day of the AFE. Any AFE expenses entered with a date after this one will not be included in the AFE for actual costs.

Closed
Closes the AFE. Any AFE expenses entered when this option is marked will not be included in the AFE for actual costs.

Capital/Expensed
Choose whether this AFE is capitalized or expensed. This setting is informational only and does not change how expenses from this AFE are posted to the G/L.

Build AFE
Click on this button to add new expenses to the AFE. Once selected a list of all AFE expenses will appear. You will need to select each AFE expense that you want to include on this AFE so that they will populate the grid at the bottom of the window. More information is listed below.

Remove Codes
Codes can be removed from the AFE by clicking on this button. Once it is clicked on a separate window will appear with a list of available codes. You can select any codes that you wish to remove from the AFE and they will be removed.

Building the AFE

Once the general AFE information has been defined above, the expense categories the AFE contains can be specified by clicking on the Build AFE button. This will bring up the Build AFE Record form.

This form can be used to choose which AFE expense codes will be included in the AFE.

The list on the left hand side of the form is a listing of all expense codes that have the AFE Code checkbox enabled in the AFE/Expense Categories form.

To choose a code, either double-click on it in the left hand side of the form or click once on it to select it and click on the '>' button in the middle of the form.

Codes can be moved back and forth using this method. The other buttons in the middle of the form have the following functions:

> - Move the highlighted code from the Available list to the Selected list.
> > - Move all of the available codes to the Selected list.
< - Move the highlighted code from the Selected list to the Available list.
< < - Move all of the selected codes back to the available list.

Once the Selected list is complete, click on the OK button to return the selected codes back to the AFE maintenance form.

Selected AFE Codes

Once the AFE codes have been chosen for the AFE, the estimated costs need to be filled in. To enter an estimated cost for an AFE code, click on the estimated cost column on the row the AFE code is displayed and type in the estimated amount. This column is highlighted in yellow. Do this for each code.

The actual costs and variance will be automatically calculated whenever an expense is entered for the well associated with this AFE and the expense is assigned to an AFE code that has been defined for this AFE. The actual expenses will be picked up no matter where they are entered, such as Well Expenses by Well (8/8ths), Enter Bills, Release Fixed Expenses or Allocate Expenses Evenly.