Switch an owner from JIB to NET:

WARNING: This is a significant setup change that affects two different processes and will also affect the respective reporting. Historical totals will still appear correct on all summarized reports. However, this will negatively affect any detail reports like the Owner Distribution Statement, Joint Interest Billing Statement, Well Revenue/Expense Detail, and Well JIB Expense Detail reports. If you want access to these detail reports for the time period before this change, then you should print them out before making this change, or create a backup of the data that can be restored at a later time if the historical detail is needed.

1. Make sure expenses haven't been partially processed:
Compare the "Well Revenue/Expense Detail" and the "Well JIB Expense Detail" reports for the New Run.
Any expenses listed under the well for this interest, must be displayed on both reports.
If the expenses on these reports don't match, then you will need to close a revenue run, a JIB run, or both in order to fully process the expenses. This must be done before the change is made or these expense may not be distributed accurately.

Example #1:
Assuming you currently have both NET and JIB interests in a well. If you process a revenue run, then change a JIB interest to a NET interest, then close the JIB Run. The expense will not be billed to the interest.
Example #2:
Assuming you currently have both NET and JIB interests in a well. If you process a JIB run, then change a JIB interest to a NET interest, then close the Revenue Run. The expense will get billed twice to the interest. Once on the revenue run and once on the JIB Run.

2. Create a backup!

3. Determine if a JIB balance exists for this owner:
View the Joint Interest Receivables report to see if this owner has a JIB Balance.
If they don't have a JIB balance, then skip to step #9.

4. Receive a payment:
Ideally, you can simply ask the investor to pay off the balance. If they pay it off, then there is no longer a balance to transfer. This process then becomes much easier. If payment is made, you can skip to step #9 after the payment is entered.

5. Determine how to assign the JIB Balance to wells:
You can skip this step if they only have a JIB interest in one well.
If the owner has a JIB balance, this isn't broken out by well. The deficit suspense that you are about to create will be broken out by well. You need to determine how much of the balance you want associated with each well. You can view past JIB Statements or use your own creative abilities to determine this breakdown.

6. Create a credit invoice to offset the JIB Balance.
Use the Sales/Invoicing window to create a Credit invoice to offset the JIB
Create a new invoice using the following information:

Customer ID: Select the owner for the interest being switched.

Post Date/Invoice Date/Due Date: Use the date of the last JIB closing, or the date of the last Revenue Run closing if you haven't closed any JIB runs yet.

Invoice/Reference: Anything you want.

Item/Price/Quantity/Dept: Leave Blank

Account: Select the Deficit Suspense Account.

Well/Lease: Select the well for the interest being switched.

Extension: The amount of the interest's balance in this well that you determined. Enter this as a negative amount.

Taxable: Choose "Exempt" in the last field so that it doesn't add tax to this adjustment.
View the Joint Interest Receivables report to confirm that the balance was zeroed out or offset. (You may need to mark the option to "Include All Receivables")

7. Clear the JIB Balance
While the JIB Balance is zeroed out, these offsetting invoices will still show up on the receivable reports. You will need to use the Receive Owner JIB Payments window to clear these from the receivable reports. Select the desired Owner ID and use the same Payment Date as you used for the adjusting invoice on the Sales/Invoicing window. Leave the amount as Zero. Then manually fill in the Payment column with the same amount as is listed in the Balance column. This will apply the credit (negative balance) to the other invoices with a balance. If you are just transferring a portion of the JIB Balance, then only enter enough positive amounts in the Payment column to offset the negative amount of the credit. Since the overall amount is zero, nothing will post to the selected checking account at the top, so don't worry about what account is selected here.
View the Joint Interest Receivables report to confirm that the invoices no longer show up as receivables. (You may need to mark the option to "Include All Receivables")

8. Create the Suspense Balance
Use the Suspense Beginning Balances/Adjustments window to create a deficit suspense balance for this interest.

Owner ID/Well ID/Owner Type/Program: Fill these fields out with the same information as is specified on the Division of Interest window for the interest being switched.

Year/Period: These don't matter, but they do need to be filled in.

Run: Choose the last closed Revenue Run for the group that this interest will be in.

Type of Suspense: Choose "Deficit Amount"

WI Expenses: Fill in the balance to be assigned to this well in the WI Expense field as a positive amount.
View the Suspense Report for the same run number as was specified on this window to confirm that the adjustment shows up.

9. Make the switch
Unmark the 'JIB Int' option on the Division of Interest window for the interests that need to be switched.

10. Done!
Evaluate your changes both now and then again after the next revenue/JIB closings.