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.
Is there any way that I can deduct taxes that are owed for tax year 2007 from these individual investors? We would like to deduct these tax amounts from the next checks we issue, but I can't figure out how to do it.

You can manually enter these taxes on the Well Revenue by well screen. Enter the tax and the amount (as a negative number) of the tax for one owner at a time. Put the respective owners ID in the "Allocate all to" field and it will allocate that amount of the tax to the owner on the next closed run.

Top

Return to Taxes