SherWare Knowledge Base
Putting an Owner Into Suspense
Putting an Owner Into Suspense
You can put an owner in suspense by either putting an individual interest on hold in the division of interests or putting everything for that owner on hold in the Owner Information.
You can input their balances in the Suspense History screen from the Maintain menu. Click the New button on the toolbar to create a new record for each owner that you enter. Enter the owner's ID, and then the well ID for their beginning balance. The Year and Period can be the current year and period, and the Run Number and Run Year should be the last closed revenue run. If you have not already closed a revenue run, you can assign it to run 12 of 2007 for example, assuming that run 1 of 2008 will be your first actual run closing. Be sure that the well group chosen is the correct group for the well ID entered.
The suspense action should be Into Suspense because you are adding to their suspense balance. If you are entering a beginning positive balance, enter the number as a positive Net Amount, and make the Suspense Type: Minimum Check.
If you are entering a beginning negative balance, enter the number as a negative Net Amount, and make the Suspense Type: Deficit. Choose the proper Owner Type for the owner's balance being entered.
Then enter a comment to specify that this is a beginning balance, and click Save on the toolbar. Do this for each owner whom you want to enter a beginning balance for. This will create a beginning suspense balance for the owners within the Disbursement Manager. Keep in mind, this affects any royalty owners, or any NET working interest owners. (NET meaning that their expenses are netted from their revenue).
If your working interest owners are set as JIB Int in their Division of Interest record, then their beginning balance should not be entered through the Suspense History, but instead should be entered in QB using the JIB Receivable account.
Be sure that any positive suspense balances entered for owners through the Suspense History screen have a corresponding amount in the Owner Legal Suspense account in QB. If you've already been tracking this amount for the owner in QB move the balance to this Owner Legal Suspense account, as that's the account that will be used by the Disbursement Manager when the amount is released from suspense and paid out to the owner.
Be sure that any negative beginning deficit amount for NET owners entered through the Suspense History screen has a corresponding entry in the Owner Deficit Receivable account in QB. If you've already been tracking that deficit in QB then be sure to move the balance to the Owner Deficit Receivable account as that's the account the Disbursement Manager will use when the deficit is covered and released from suspense.
Yes, if you currently have their owner on hold, then you can choose that suspense type when putting it into suspense. Typically as a rule of thumb, any positive amount put into suspense is put in as a Minimum Check, and any negative amount is put in as a deficit, which is why I advised you that way previously. However, if you already have them marked as being on hold, then you can choose that suspense type when creating the Suspense History entry. Keep in mind that there are two places to put an owner hold, which correspond to separate suspense types.
Return to Suspense