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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.

When we closed the revenue run we got a report "revenue closing summary by well" and it had differences or variances on it. Could you explain to me why they might be there?

A difference on the closing summary means that there was revenue or expenses that either were not able to be allocated to owners, or too much was allocated. This is most commonly caused by not having your DOI total up to 100% (or total more than 100%). This causes the system to allocate an incorrect amount vs. what was entered for the well, causing a difference. It can also be caused by entering revenue using a type that has no ownership in the DOI.

For example, if you enter OTH revenue, but have no owners with interest in the OTH class, it won't be able to allocate the money to anyone, so it will show as a difference. You can run the Well Revenue Operating Summary report, and check the rounding amounts for the wells at bottom of the report. Rounding amounts there show up as differences on the closing summary, and this is a good report to run prior to closing to see if there are any potential problems. You can also run the Utilities > Division of Interest Utilities > Check Division of Interest option to find any wells with incomplete DOI.

I have run the Division of Interest Utilities and have a problem on a well as follows: All the Categories show 100.00000 except Int Class 2 - it shows 0.666666 and I am not sure where to go to fix that. Where do I go?

This is referring to Expense Class 2 in that well's Division of Interest. From the Division of Interest screen, click on the Interest View tab. Then, click the List button on the toolbar to locate this particular well. Once the well is selected, choose Expense Class 2 from the Interest Class pull-down menu in the upper right corner. This will show you who has interest in that class, and you can click the Edit button to change any individual's interest.

I can't for the life of me figure out how to make the total working interest = 100. I'm in "well owners" division of interests and the total working interest is 0 and I think it should be 100. I read in the user's guide that you need to enter a "dummy" working interest. Is this what I need to do or do I need to find out from someone at my company if the well is being disbursed fully or not?

The records that you enter on the Division of Interest screen should add up to 100%. Enter the first owner's interest, then press the new button, then enter the next owner's interest. Continue on until the interest adds up to 100%.

You only need to set up a dummy owner if you are not operating the full 100% of the well. If you are only responsible for operating a portion of the well then you will use a dummy owner for the percentage that you are not responsible for.

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