Last month we closed our first revenue run and wrote distribution checks. The gas severance taxes were not deducted on the check stub. I believe the proper percentages have been entered on the Well Products Tax Table. Do you have any ideas what we might do to have the software make this calculation and subtract the taxes from the distribution checks?

Did you associate the individual wells with the tax table that you created? This is done in the Well Information screen by choosing the appropriate table from the Tax Table pull down menu. If the table is chosen and it's still not calculating the tax for you, then check the Taxes tab of that same screen. If you have the options selected that the Purchaser Withholds Tax, then the system will not calculate that particular tax because it's expecting that the Purchaser has already withheld that tax amount.

For severance taxes, I have selected "percent" for this well as it is calculated as gross royalties received times 4.33%. However, Sherware is calculating this prior to deduction for gas gathering of $1.50/mcf. Can I set it up to calculate this after the $1.50/mcf is taken out?

The system is set to calculate taxes based on the gross figures. Since you have a gas gathering fee that you'd like to be deducted before tax is calculated, you should set up an AFE/Expense Category with the code MKTG. This code is recognized by the system to be deducted before tax is calculated. The amounts entered when using this expense category will be allocated to owners based on their Gas Revenue interest in the Division of Interest for the well.

You can give the MKTG expense category any name or description that you like, but the code has to be MKTG in order to be recognized as deducting before tax is calculated.

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