In the past we've always used Well Revenue by 8/8ths rather than Production Receipts to enter revenue. What are the differences we will see using the Production Receipts module? If transportation/gathering charges have been deducted from the revenue, does it matter if I use and expense category ( e.g. gathering charge) or a revenue category (TRANS) as long as I enter the expense as a negative?

The benefit of using the Production Receipt screen as opposed to the Well Revenue by Well screen is that the deposit created in QB will actually match the check received from the purchaser, instead of trying to add up the deposits for each well (as would be created if you used Well Revenue by Well). The Production Receipt screen will also allow you to enter any expenses, or taxes that have been deducted from the check by the purchaser so that the deposit matches the net check.

If your purchaser deducts a gathering fee, you can enter it as an expense, or as negative TRANS revenue. The difference between TRANS revenue, and a gathering expense, is that the TRANS revenue can be allocated to royalty owners also, and the Gathering expense is typically just allocated to working interest owners. This is of course dependent on how the Division of Interest is set up for the well, and for the gathering expense category. Whichever method you choose, you will be entering the deduction as a negative on the Production Receipt screen.

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