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 Expense Code 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 code 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 code 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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