Land Management

The Land Management processing is an optional module. Your software will not have the ability to create Delay Rental Payments unless you have purchased this module. If you did not purchase it then you may not be able to see this tab in the preferences. Contact SherWare Support if you are interested in adding this capability.

Cash Account
Choose the bank account the delay rental and other obligation checks should come from.

Rental Account
Choose the expense account the delay rental checks should be posted to. The account that is chosen as your "Rental Account" here must be a "1099 Rental Account" in order for the land owners to get a 1099 for delay rental checks.

Check for Rentals Due at Startup
Check this box if you want the system to check for obligations' coming due every time the system is started.

Only check when signed in as: Admin
This option is tied to the one above it and allows you to only have the Delay Rental Reminder appear when logging in as an Admin user. This way other users do not have to see the reminder every time they logon.

Lead Time in Days To Use For Checking
Enter the number of days the system should look into the future for obligations coming due on leases. If the Check for Rentals Due at startup is checked, the system will look into the future the number of days entered here for obligations coming due when the system is started.

Include the expiring leases report with the delay rental report
The normal delay rental report only displays rentals that are coming due. Marking this option will provide the additional detail of leases that will be expiring soon.

Expense Delay Rentals to Producing Wells
Check this option if you wish the delay rental checks to be expensed to the well. This will create an expense entry for the delay rental on the well.

If you mark this option you will need to set up some additional information to make sure this processes correctly.

Make sure an expense code that you would like these expenses to be billed as is chosen below in the code field.

Make sure that each well under the lease is associated with the lease. This can be specified on the Well Info tab of the Well Information window.

How Expensing Delay Rentals will work:
This option will allocate the cost of the delay rental checks as an expense to the investors in the well(s) within each lease.
When you create delay rental checks with this option marked it will allocate the expense to the well(s) that are associated with the lease. The wells are associated with the lease on the well information window. If more than one well is associated with the lease that is being paid, the cost of the rental will be divided equally by the respective number of wells and a portion of it will be assigned to each well.
When the expenses are allocated to the wells they will be put in the allocation file. This is done because a production period will have to be assigned to the expense before it can be processed on a run closing. You will have to use the Allocate Held Expenses window from the tasks menu to associate a production period to the expenses so that they will be included on the next run closing.
If this option is marked it will post the expense of the delay rental to the expense clearing account instead of the delay rental account. If a lease does not have any wells associated with it, then the payments for that lease will ignore this option and post to the rental account specified.
Each lease must be associated with at least one well on the well information window when this option is marked. The wells status must be active or another status that will allow the run to be processed on a run closing in order for the expense to be allocated to the owners in the respective well(s).

Exp Code
Choose the expense code to use when expensing delay rentals to the wells. This will only appear if the option is marked to expense delay rentals to producing wells. If an expense code is not selected, the system will search for an expense code with the words 'delay rental' as part of the code name, and use that expense code to expense the delay rental to the wells.