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  • Setting Up Expenses

    We suddenly have started charging transportation (that we are being billed for) to a set number of wells. This transportation expense is then being charged to everyone in the well. We would like to be able to charge this expense to the royalty owners in such a way that it shows up as an expense just like the severance taxes. I'm not sure how to do this. Could you help me with this?


    You will have to use a different expense class on the Division of Interest screen. Pick one that you are not using for anything else. For example say Expense Class 1. You can give all of your owners an interest in this class, then whenever this class is used, it will charge the expense to every owner, including the royalty owners.

    You can easily fill this percentage in with the "Copy Division of Interest" Utility. Choose the well then either the oil or gas revenue class to copy from. Then choose the same well and Expense class 1 (or whatever class you use) to copy to. This will fill out the DOI for the well so that your royalty owners will be charged for any expenses that use class 1.

    Set up an Expense Code for the Transportation on the Expense Codes screen. Make sure you choose the Class to be Expense Class 1 (or the class you set up in step #1 above). This will make so that every time you charge transportation it will allocate it to the owners with an interest in class 1.

    You can then enter the expense on the Enter Bills screen like all of your other expenses and it will be allocated to the royalty owners.

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