After closing the revenue run, fixed well expenses to my company are showing up as checks that need to be written. We need these fixed expenses to be billed out to Working Interest Owners, but we do not need to write ourselves a check. How do we stop this? (DMIE)

If, for example, Sherwood Energy is the vendor of any of the fixed expenses, then it is correct that the system will create a vendor check to pay you for the expenses that were vended. The fixed expenses will still be billed to the working interest owners on the run closing.

If you would like to avoid having a vendor check created for yourself, you can change the Terms of your company's vendor record in QuickBooks to be POST. This will allow the system to post the income you should receive for vending the fixed expenses to an income account in QuickBooks instead of creating a vendor check for your company.

To do this, open QuickBooks, and go to the Vendor list. Double-click on the vendor set up for your company, and then click on the Additional Info tab. On this tab, there's a Terms drop-down menu. If you see the term of POST, choose it. If not, click Add New... and add a new term named 'POST' (all caps). After this term is added and selected, click OK to close the vendor record. Then, in the Disbursement & JIB Manager, go to the Utilities menu and choose Synchronize List Files with QuickBooks. In this screen, check the option for Vendors and Terms, and then click Synchronize.

Last, go to the Maintain > Expense Codes. Use the List button on the toolbar to locate the expense code being used for any fixed expense vended by your company. Then once that expense code is on the screen, choose an Income account in the field named Account for Posting Operator Vendor Revenue. This will be the income account that you use to track the income earned by vending expenses to your wells, such as an administration fee, etc.

Once this is set up, you'll notice that you will not have a vendor check created the next time that you close a run processing fixed expenses. Instead, you'll see a journal entry made in QuickBooks that will credit the income account you selected, and debit the Fixed Expense account.

You can print the current vendor check to plain paper, and then after the run has posted to QuickBooks, you can make a journal entry debiting your cash account for that check, and crediting the income account used for tracking operator vendor revenue.

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