My boss would like the Natural Gas Tax cost to be distributed/deducted in each Royalty Interest Owner's proportion on their statements. I have not added any expenses to the Royalty Interest Owners and need to know how to add this expense so that it is deducted from each of their proportionate Royalty Interest earnings.

If this is a tax, I would set it up as a tax instead of an expense.

You will have to set up the Division of Interest for a currently unused tax class. I will use Tax Class 2 for this example. Then you can either manually enter the amount of tax to withhold each month or set up a tax table so that it automatically calculates.

Manually Enter the taxes.

1. Set up the The Division of interest for the Royalty Interest owners in tax class 2. Be sure that the Total Interest equals for all the Royalty Interest owners is equal to 100%.
   
2. Make sure that the taxes tab of the well information screen has the option marked that "Purchaser withholds gas tax 2".
   
3. Manually enter the tax that needs to be withheld for each well on the Well revenue by well screen and choose tax class 2 when you enter it.
   

1. Set up a tax table (or add to a current tax table) under tax class 2 to be withheld from the well.
   
2. Set up the Division of Interest screen with each owners percentage in the same class that you use on the tax table. Since this will automatically calculate based on the total revenue instead of just the Royalty Interest owners share you will have to assign an interest to a "Dummy" owner for the Working interest owners share.
   
3. The taxes will automatically be calculated based on the revenue entered so after it is set up you will not need to do anything else.
   

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