I just closed a revenue run and the Revenue Run Closing Summary Report showed a HUGE difference in the "difference" block and I cannot figure out why. Some wells do not have royalty owners so that may be causing a problem, or they have one royalty owner that only gets a portion so it doesn't add up to 100%????

It's necessary that your Division of Interest for all wells being processed totals 100 so that all activity entered for the wells can be fully allocated to the owners involved. If your well's DOI does not total 100, then you will see large difference, or rounding amounts as described. Have you already sent out disbursement checks created on that run closing? If you have not, then you need to open that run, correct the division of interest to total 100 for each well, and then close the run again.

If you do not know who a portion of the well is being disbursed to, or are not responsible to pay out that portion of the well, you can create a 'dummy' owner as a placeholder so that the well's DOI can be filled out to 100. To do this, create a new owner in the Owner Information screen. Enter an owner ID, and then enter the word 'dummy' in the Owner Name field. Click Save on the toolbar to save the record. After this is created, you can give this dummy owner an interest in any well where you need a placeholder to make up the portion of interest you are not disbursing, so that the well's total interest equals 100. The system will recognize that this dummy owner is just a placeholder, and will not allocate any monies to this owner.

I would recommend using the Check Division of Interest utility to verify that all interest classes are correct before closing the run again.

Top

Return to Differences When Closing a Run Home Page