Closing a Revenue Run

Close a Revenue Run is used to mark a clean cut-off for income and expenses. When Close a Revenue Run is chosen, the following things take place:

Wells are checked to see if they are in deficit for this run. If so, what happens next depends on the setting of the group option "Net deficits within this group." If deficits are not to be netted against other well income, the total for this well is added to the suspense file to be carried forward until net income on this well will cover the deficit. If you chose to net deficits with the owner's other well income in the group definition, suspense items are netted against any positive income an owner has in other wells this run.

The owner's net distribution is checked against the minimum check amount set up in the Owner Information screen. If that number is zero, meaning it has not been specified, it next compares it to the total set in Check Printing Preferences. If the net amount is less than the minimum check amount, the amount is added to the suspense file to be carried forward until the total net distributions plus any previous minimum suspense amounts exceed the minimum check amount.

The suspense file is checked for well amounts in suspense from previous periods. If all or a portion of the deficit can be covered by the well's net income from this run, it will be removed from the suspense file and brought into this period to be disbursed. If deficits are netted against other income and if any deficit exists and can be fully or partially covered by income this run, it is brought forward and processed in the current run.

The suspense file is checked for owner minimum amounts from previous periods. If the owner's total net distribution, added with the suspense amount, exceeds the minimum check amount, the amount is removed from the suspense file and brought into this run to be disbursed.

Owner and vendor checks are created with the check date given and placed in the check register to be printed.

Any rounding amount is added or subtracted from the specified owner in each well. The default is to adjust the lowest owner ID in the well. This can be changed to the highest owner ID in the Miscellaneous Preferences screen or a specific ID in the Well Information screen.

The owner's information for each well, (total income, expenses, severance taxes, net amount, interest percentages), is copied to the owner historyfile.

The well production information (total MCF, total BBL, income, expenses, etc.) is copied to the well history file.

The revenue and expenses that make up this run are marked as closed so that they can't be changed, or included in any future revenue run closings.

The Revenue Run Closing Summary is created and can be printed or viewed on the screen. It summarizes all activity for the closed run. Other reports generated at this time are the run suspense activity and check register.

NOTE: If you find that you need to make some changes to the run that you just closed, and you have not printed the checks, choose Open a Closed Revenue Run from the Utilities menu. This will let you reverse the close process for the given run. You can then make the changes needed and close the run again. If checks have been printed from this run, they will be voided if the run is re-opened.

To close a run, choose Close a Revenue Run from the Tasks menu.