Well Expenses by Well (8/8ths)

Well expense can be entered on a well-by-well basis by choosing Well Expense by Well (8/8ths) from the Tasks> Disbursement & JIB Tasks menu. This assumes that you are entering gross amounts for the well's expense. The gross amounts represent the entire production expense for the well. The net amounts will be the amounts you are invoiced from the vendor if you are not billing the full gross production expenses of the well. The Well Expense by Well (8/8ths) will create a journal entry for each expense entry for the individual well, as opposed to the total invoice amount received from the vendor billing multiple wells on one invoice. This is used primarily for entering corrections to the well's total expense, OR for viewing the total expense entered for the well during the run being viewed. For more information on entering a correction using this , see the Corrections subject from the Help by Subject menu.

Expenses entered on this will not be paid until you close the run. When the run is closed, the expenses for each vendor will be accumulated and a check will automatically be created in SherWare to pay the vendor.

The check that is created will show one line of detail for each reference used on the expenses. If the same reference is used on multiple entries, they will all appear on one line on the check stub paying the vendor. For example: If you always leave the "Ref ID" field blank, then the stub will only have one detail line. If you have five expenses entered and something different is entered on the "Ref ID" field, then you will have five detail lines on the stub.

If a vendor is used for an expense that is setup to "POST", then a check will not be created. The amounts will be posted to the respective vendor income account for each expense.

As records are added, they will appear in the list at the bottom of this . The information displayed in the list can also be edited by changing the value displayed in the list. Only expenses shown in black font and red font can be edited on this . Entries made within this will debit the Expense Clearing account, and credit the Fixed/Well Exp by Well Payable account as chosen in the Rev Dist/JIB Posting Preferences.

Detail lines that appear in red font represent fixed expenses. Detail lines that appear in blue font represent expenses that were entered as bills, cash disbursements or from the General Journal Entries . Detail lines that appear in black font represent items that were added or modified on this . A check will be created for any expenses shown in black or red when the run is closed. Any records that are edited with this will turn black.

• If you edit a Fixed Well Expense with this , the edited expense will not be removed if you choose to Backout Fixed Expenses.
  

Well ID
Enter the Well ID for the well that expenses will be applied or that you wish to view.

Run No.
Enter the run number you wish to view. Expenses can only be entered on a New Run. If there are already expenses entered for the run that you choose, they will be displayed on the bottom of the . You cannot change information for a closed run. If entering JIB Expenses, be sure to choose "New JIB Run" here before entering them.

When looking at an expense where a portion of it has been closed on both a revenue and a JIB run, the full amount of the expense will show up under both runs. It will not just show the portion of the expense that processed on that run. Since a well's division of interest has the ability to include working interest owners who are treated as Net or as JIB, this means that the system can process a portion of the expenses for that well on both a Revenue run closing (the amount allocated to Net owners), and on a JIB run closing (the amount allocated to JIB owners). Because of this, you may see the same expense appear on both a revenue run closing or JIB run closing.

Expense code
Choose the expense code for this expense amount. Look up the category by pressing the expense code button, pressing F2, or typing the first few letters of the category name. If a category is found that matches the characters typed in, the rest of the category name will be brought to the .

Code
The ID for the expense code selected. If you know the code, you can type it in and the expense code name for that code will be displayed to the left of that field.

Acct Date
Enter the accounting date that this expense was paid or occurred. This date is very important. When you run reports for the current run or you close the run, you are asked for an accounting date. That date marks the cut-off point for entries that will be processed during that run. Only items on or before that accounting date will be processed.

Vendor
Enter the vendor to which this expense should be paid. Choose the vendor from the vendor list by pressing the Vendor button, pressing F2 or by typing the first few characters of the vendor name and pressing enter. If the vendor exists on file, you will see the vendor ID appear above the vendor name. Vendors must first be defined in the Vendor Information before they are available to be chosen within this .

Total
Enter the total amount of the expense. Enter as a positive number. All expense credits should be entered as a negative number.

Production Year/Period
Enter the production year and period that is associated with this entry.

BBL
If the expense code has the word "Brine," "Water," "H2O" or "Salt" in it, the system will allow you to enter the number of barrels of water that were hauled from the well. This information is used for year-end reports.

Notes
Enter a note about this expense. This note will display on the owner's statement on the detail line for this expense. (optional)

Ref ID
Enter a reference ID for this expense. (optional)

DOI Class
The Division of Interest class that this expense will be charged to.

Allocate All To
If this expense detail should be allocated 100 percent to one owner, enter that owner's ID code here. The expenses entered in the detail line will then be allocated 100 percent to the given owner. (optional)