Misc Preferences

The Miscellaneous Preferences contain several options for various areas of the software.

Calculate Days On From Period Ranges Entered
If you want the days on to be automatically calculated when you enter a revenue period range, enable this option. The system will calculate the number of days between the beginning and ending range entered and place the calculated number in the days on field.

Show Inactive Wells in Well Lists
This option determines whether wells that you have marked as inactive will show in the lookup lists anywhere in the software.

Send All Revenue and Expenses to Allocation Files
This option will allow any revenue and expenses that have been entered to skip going directly to the income and expense file, and thus showing on reports for the New run. Instead, they will go into a holding file, where they must be released in order to be processed. This option requires using the Allocate Held Revenue and Allocate Held Expenses options under the Tasks Menu.

NOTE: Anything entered directly onto the Well Revenue by Well and Well Expenses by Well windows will not be sent to the allocation file. These entries will be showing on the new run.

Turn on Edit Mode
When Edit mode is on you will have to press the edit button in the toolbar every time you want to edit or add a new record in SherWare.

Share Documents Between Wells and Leases
Documents associated with either a well or a lease will also appear for the corresponding well or lease when this option is marked. This option only affects users with the Documents module.

Maximum Rounding to Adjust:
By default the maximum rounding amount to adjust is $.50. If you would like a different amount as the maximum to adjust, enter it here.

Adjust to Highest Owner ID in Well
By default the system adjusts rounding to the working interest owner with the lowest owner ID in each well, unless a different owner is specified on the well record. If you would like the working interest owner with the highest owner ID to have rounding adjusted to them, check the option box beside the rounding amount.

Gathering Charge Per MCF:
The default rate used to charge gathering on wells that are selected. The rate specified in the Well Information window on the Misc tab will override the default rate given here.

Compression Charge Per MCF:
The default rate used to charge compression on wells that are selected. The rate specified in the Well Information window on the Misc tab will override the default rate given here.

Vendor Comp & Gathering Paid To:
If the compression and gathering charges should be paid to a particular vendor, enter that vendor's ID code here. The system will then create a check to pay the compression and gathering to that vendor when the run is closed. If a vendor is not specified, the amounts will post to the account specified as the "Comp & Gathering" account in the Rev Dist/JIB Posting preferences. If a vendor is selected then a check will be created for that vendor when the run is closed.

Minimum Royalty Int 1099 Amount:
Enter the minimum amount that must be earned before a 1099 will be created for a Royalty/override owner. When the 1099s are created they will only be created for royalty/override owners if they earned more than the amount specified here. The minimum is specified each year by the IRS within the instructions for the Form 1099-Misc.

Minimum Working Int 1099 Amount:
Enter the minimum amount of non-employee compensation that must be earned before a 1099 will be created for a working interest owner. When the 1099s are created they will only be created for working interest owners and vendors if they earned more than the amount specified here. The minimum is specified each year by the IRS within the instructions for the Form 1099-Misc.

Build 1099s Based on Gross Revenue
By default, this option will be marked and the system will create 1099s for owners based on gross revenue received. Unmarking this option allows you to create 1099s based on net revenue. We suggest leaving this marked.

There was always debate between our clients about whether the net amount (check amount) or the gross income earned should be reported to the IRS on the 1099. The wording of the IRS instructions used to be fairly vague, so we were forced to offer an option about whether the file should be built using net revenue or gross revenue. The current wording of the IRS instructions (since 2009) is much clearer: "Enter gross royalty payments of $10 or more before reduction for severance and other taxes that may have been withheld and paid." And "Gross oil and gas payments for a working interest." We continue to offer the option for how to report the revenue, but it has become clearer in recent years that the intent of the IRS is to have the gross revenue reported to them for all oil and gas 1099s created.

Revenue Account No.:
Used for Louisiana State Reports.

Company Reporting No.:
Used for Louisiana State Reports.