I am now entering our production receipts. We want to calculate our royalties on the gross amount of our payments. How do we do this? Do we check or not check the "gross" box in the Production Receipts screen?

Is the Gross amount you receive the full amount of revenue for the well? If it is then you do not need to mark the "Gross" Option.

You only want to mark the Gross option if you only receive a portion of the wells production and you do not know the amount of units that you are paid for. This option will make so that it does not gross up the units on the reports. This option does not affect the amount at all so will not affect the amount that is allocated to the royalty owners.

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I have noticed that the Revenue (production receipts) I entered is being grossed up. Is there a way to stop that - I don't want more money distributed than I actually receive.

The system will gross up the revenue if there is a direct paid owner within the well's Division of Interest, or if there is a Dummy owner within the well's DOI. (A Dummy owner serves as a placeholder in the DOI for an owner whom you do not disburse to, and is unknown). The system gross up the revenue by their (direct paid or dummy interest) percentage in order to show you the gross production on the well. However, only the net amount (revenue that you actually received) is paid out during the run closing. You can verify this with the Well Revenue by Well report for the New Run. The amount shown in the Net column is the amount that will be processed and paid out when the run is closed.

Also, be sure that when you enter your Production Receipts that you are entering the amount you actually received from the purchaser, not the gross revenue for the well.

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When we receive a statement from our operators they include the bbls, price/bbl, gross amount, taxes and they include their expenses. In production receipts I should enter the gross bbls, price and gross amount. I also should enter the taxes (negative amount) and the expenses as a negative amount? Are there expense codes on the production receipt page?

Do you own the well entirely (100%) or are you only receiving a portion of the well's revenue?

If you own the well 100% then yes, you can enter the gross units and gross dollars before tax and expense in the Production Receipt screen. The expenses can be entered using the expense categories. These are available from the Type pull down menu and appear below the revenue categories, so be sure to scroll down the list.

If you only receive a portion of the well's revenue and do not own 100% of the well, then you should not enter the gross dollars because the Production Receipt screen assumes you are entering net figures. Therefore, you should enter the net BBLS (those which you are being paid on), the price/BBL, and the net dollar amount for oil revenue before tax or expenses have been taken out. You are correct to enter the taxes and expenses as negative amounts.

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