How do we go about depositing money received for AFE's and accounting for it in SherWare? We wish to show payment of AFE funds to well AFE's by AFE No. and investor. The wells are set up in SherWare. They are drilled, but we are still in the process of doing AFE's for completion, acidizing, laterals etc. How do we track investor payments and account for use of AFE funds to pay the expenses? Does the system track all of this?

The AFE payments cannot be linked to an AFE number, only the owner ID.

If the owner is a JIB owner in that well (marked as JIB Int in the well's DOI), then the payment should be received through Receive Owner JIB Payments screen. This credits his balance in the JIB Receivable account, and is netted against AFE expenses billed out on the JIB Run closing invoices.

If the owner is a Net owner in that well (NOT marked as JIB Int in the well's DOI), then the payment should be received through Receive Owner Net Payment screen. This credits the owner's suspense balance, and is used to apply to AFE expenses netted from this owner's revenue when the Revenue Run is closed.

The above options are assuming that you are allocating AFE expenses to owners when the runs are closed. This option is set in the AFE Options screen 'Allocate Expense to Owners on JIBs'. If the option is checked, then you can use the above methods. If the option is unchecked, then you can receive the payment as being from a customer since you're tracking the payment against the owner's balance as tracked in the Disbursement Manager portion of the software.

Top

Return to the AFE Module