Print Form SV3 & SV3A

Both the reporting and calcuation/distribution of fees for this module are managed from the "Print Form SV3 & SV3A" menu option. This brings up the window titled "Ohio Tax Reporting (Forms SV 3/3A)" which allows you to print three different reports and create the adjusting entries. The three reports are the worksheet (Ohio Form SV 3A Worksheet) that helps you determine if and what adjustments are needed, the Form SV 3A (Cost Recovery Schedule), and Form SV 3 (Severance Tax Return) directly from the software on blank paper.

This report allows you to print/preview a worksheet that shows the total taxes calculated for each well and lists if any adjustments are needed. If adjustments are needed, then it can create the adjusmtents for you so that the tax minimums are met. Once the adjustments have been created, you can print forms SV 3A (Cost Recovery Schedule) and SV 3 (Severance Tax Return) directly from the software on blank paper.

Overview:
You will first need to specify the tax table and tax calculations that are setup on that tax table for both the Severance and Cost Recovery taxes. You can then select the quarter, year, and other criteria that you want to view the report for. The first time you preview this, you can look at the "Cost Recovery Fee Worksheet" to determine if any adjustments are needed. DO NOT mark the option to "Create adjusting entries based on worksheet numbers" the FIRST time you preview the report. When that option is marked, it actually creates the adjusting entries for each well which means they will be allocated to the investors in the well.Once you have viewed the report and have confirmed the adjustments that will be made, then you can view the report again with that option marked so that it does go ahead and charge the investors in the well for those charges. The adjusting entries that are created will be deducted from the investors revenue on the next run closing. If you want the adjusting entries to only be charged to wells that didn't meet the $15 threshhold, then you can mark the option to "Base adjustments only on wells that didn't meet the required minimum".
Once the adjustments are made, you can then print the forms SV 3 & SV3A to send in to the state.

Report Options/Fields:

Well Product Tax Table:
Select a Tax table that has the Cost Recovery Fees on it.

Severance Tax is set up as:
Choose the tax calculation on the selected tax table that is used for the severance taxes.

Cost Recovery Fee is set up as:
Choose the tax calculation on the selected tax table that is used for the Cost Recovery Fee.
Fee.

Quarter:
Choose the quarter that the report should be previewed for.

Use Production Period as Selection Criteria…:
By default the software will base the report on the accounting date (the date of the run closing that processed the taxes). If you want to use the production period on the entries instead of the accounting date, then you will need to mark this option.
Since the adjustments should be based on the date the minerals are removed from the ground, this option should be marked.

Year:
The year that the report should be built for.

First Well:
The first well in the range of wells to be included on the report.

Last Well:
The last well in the range of wells to be included on the report.

What To Print:
Choose the form that you would like to print. Three different forms are available to be printed/previewed from this screen.

Cost Recovery Fee Worksheet:
Shows what has been calculated for both severance taxes and for the Cost Recovery Fee. It then shows what the minimum should have been, and whether those combined calculations met the minimum. If it didn't meet the
minimum it will show the amount that needs to be charged to each well so that the minimum amount will be reached. If the severance tax and cost recovery fees collected are over the minimum amount, then it will say that no adjustment is needed.
When this report is selected, it enables the "Create adjusting entries based on worksheet numbers" option at the bottom of this window. Marking this option also will actually create the adjustments.

Cost Recovery Schedule (SV3A):
This shows the breakdown for the totals reported on the Ohio Severance Tax Return on line 14. This report can be printed and filed with the state. It must be included with the form SV3 if you report any oil and/or natural gas production.
When this report is selected, you will also need to specify the Account #.

Severance Tax Return (SV 3):
Creates a printable view of the Ohio Severance Tax Return that can be filed with the state. The amount of "Regulatory cost recovery payment due" is reported on line 14. This total is based on the current options marked when previewing the report.
When this report is selected, you can also choose whether or not you want the "Total amount remitted" filled in or left blank. Generally, you can have it fill this in for you. The only time you wouldn't want it filled in is if you need to add amounts to the report for some of the other Natural Resources that are not tracked in SherWare. You can hand write the additional totals and manually calulate the Total Amount remitted.

Create adjusting entries based on worksheet numbers:
This option will only be visible if the "Cost Recovery Fee Worksheet" is selected under the "What to Report" section of this window. If this option is marked, it will create entries on the new run to adjust the amount of the Cost Recovery Fee based on the needed adjustment that is showing on the report. You should preview the worksheet first to see the amount that will be created, and then mark the option and run the report again if you need to create the adjusting entries.

Account #:
This option will only be visible if either "Cost Recovery Schedule (SV3A)" or "Severance Tax Return (SV 3)" is selected
under the "What to Report" section of this window. This is the state assigned account number that should be used for your company on the report.

Don't print total on SV 3 form:
This option will only be visible if the "Cost Recovery Schedule (SV3A)" option is selected under the "What to Report" section of this window. If this option is marked it will not print the total on the SV 3 form which allows you to manually tabulate the total along with any other information that needs added to the report.

Base adjustments only on wells that didn't meet the required minimum":
This option will only charge the adjustments that are made to the wells that are individually below the minimum. This will prevent the investors in a productive well from being penalized for other wells that you operate that are not as productive and are under the minimum.