How does the system know when to pay a 'recurring bill'? I entered a couple of recurring bills into the system, but it doesn't request a payable date - so we are curious as to how this flows through the system.

Top

As operator, we are entitled to charge $150/month plus 10% of all operating expenses. How would I set this up in the system so that it calculates automatically and records both the income to us and the expense to the working interest? (AM)

There's not a way to make the system automatically charge 10% of all operating expenses for the month + $150. You would need to calculate this amount manually, and then enter it as an expense that is vended by your company. I'd recommend that you enter it through the Well Net Expense by Well (8/8ths) screen for each well. This way you won't have a bill to yourself for the amount charged. I would recommend that you create an Expense Code for this if you have not already.

In the expense code set up (Expense Codes from the Disbursement & JIB Files menu) choose credit account to be used for posting the income you'll receive by being the vendor of this well expense. This should be an income type account.

Then, in the Vendor Information screen, use the List button to locate the Vendor record which is set up for your company. On the Misc tab, check the option to Transfer this Vendor's Activity to G/L. With that option selected, the system will be able to allocate the expense to the working interest owners on the well, and will create a journal entry to post the amount of income you'll receive by being the vendor of the expense to the credit account selected in the Expense Code screen.

Top

Return to Everything About Expenses