Allocate Expenses Evenly

Expense allocation is a procedure that allows an expense to be divided evenly among selected or all wells.

For Example: A chart integration expense needs to be divided evenly between the wells that it covers. Rather than manually divide the total expense by the number of wells and then enter the expense in the Well Expense by Well (8/8ths) data-entry , use the Allocate Expenses Evenly utility.

Enter the details of the expense. Expense can be allocated to all wells in the group selected or to selected wells. Expenses entered through this utility 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.

If you choose to allocate to selected wells in the chosen group, use the mouse or arrow keys to highlight the well and then click on the > button. This will add the well to the selection and show the total amount going to each well. Multiple wells can be selected by holding down the CTRL key and clicking on each well. A range of wells can be selected by selecting the first well you want to choose, then holding down the shift key and clicking on the last well you wish to choose. When you do that, all wells in between should be selected. Press OK when finished selecting and the expense will be allocated evenly among the wells.

If you have a bill with multiple detail lines that need to be allocated evenly you can use the Enter Bills to do this using a well ID of ALLOC. Note that this is a separate option, and this type of allocation will appear in a different than the Allocate Expenses Evenly .(See the Enter Bills for more information.) If the amount that you are allocating doesn't split evenly, any rounding will be applied to the last well ID alphabetically.

The difference in using the Allocate Expenses Evenly utility and the Enter Bills with the 'ALLOC' well ID, is that the Enter Bills creates an outstanding payable to that vendor which can be paid through the Pay Bills . Any expenses entered on this will be processed at run closing and a check will be created for the vendor at that time. The Allocate Expenses Evenly utility only creates a journal entry crediting the Fixed/Well Exp by Well Payable account for the amount due to the vendor.

Prod Year
The production year of this expense.

Prod Period
Enter the production period for this expense.

Group
The well group to allocate expenses to.

Acct Date:
Enter the accounting date of the expense. 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.

Category
Enter the expense code to assign to this expense.

Total Amount
The total amount of the expense.

Reference ID
A reference identification for the expense. The invoice No., etc. (optional)

Notes
Free form text notes about the expense. (optional)

Allocate To:
Choose Selected Wells in Group to select the wells that this expense should be divided. Choose All Wells in Group to divide the expense between all wells. If Selected Wells in Group is chosen, the Process button will bring up another that will allow the wells to be selected.

Process
Process the request.

Exit
Cancel the operation. (Only closes the if Process has already been chosen)