Land Management

The Land Management processing is an optional module. Your software will not have the ability to create Delay Rental Payments unless you have purchased this module. If you did not purchase it then you may not be able to see this tab in the preferences. Contact SherWare Support if you are interested in adding this capability.

Cash Acct
Select a bank account. This is the bank account that will be used to create the delay rental checks.

Rental Acct
Choose the expense account that the delay rental checks should be posted to. This account will be debited as the offset for the check that is created.

Check for Rentals Due at Startup
Check this box if you would like to be reminded to check for obligations coming due every time the software is started. When marked, you will receive a message asking "Do you want to check for delay rental payments coming due?" after you login. You can choose "No" and the message will be dismissed, or "Yes" and another window will appear showing you the rentals that are coming due in the near future.

Lead Time in Days To Use For Checking
When checking for delay rentals that are coming due the number of days entered here will be used to determine what rentals will appear in the list. Rentals due within this number of days will appear. The number you use here should be large enough to give you enough time to recognize it is coming due, create a check, and mail it in order to get it to the recipient on time.

Expense Delay Rentals to Producing Wells
If the delay rental checks should be expensed to investors in a well you can mark this option. This will add an expense to the allocation file to represent this payment so that it can be invoiced to the investors in the well.

If you mark this option you will need to set up some additional information to make sure this processes correctly.

Make sure an expense code that you would like these expenses to be billed as is chosen below in the Expense Code field.

Make sure that each well associated with a lease has the respective lease specified on the Well Info tab of the well information window in the lease field.

How Expensing Delay Rentals will work:
This option will allocate the cost of the delay rental checks as an expense to the investors in the well(s) within each lease.
When you create delay rental checks with this option marked it will allocate the expense to the well(s) that are associated with the lease. The wells are associated with the lease on the Well Info tab of the well information screen. If more than one well is associated with the lease that is being paid, the cost of the rental will be divided equally by the respective number of wells and a portion of it will be assigned to each well.
When the expenses are allocated to the wells they will be placed in the allocation file. This is done because a production period will have to be assigned to the expense before it can be processed on a run closing. You will have to use the Allocate Held Expenses window from the tasks menu to associate a production period to the expenses so that they will be included on the next run closing.
Since this is getting allocated on a run closing the expense will post to the expense clearing account instead of the delay rental account on this window. If a lease does not have any wells associated with it, then the payments for that lease will ignore this option and post to the rental account specified.
Each lease must be associated with at least one well on the well information screen when this option is marked. The wells status must be active or another status that will allow the run to be processed on a run closing in order for the expense to be allocated to the owners in the respective well(s).

Exp Code
If the option to Expense Delay Rentals To Producing Wells is marked you will need to also select an expense code to be used for the expense. Select the expense code to use in this field. This will only appear if the option is marked to expense delay rentals to producing wells. If an expense code is not selected, the system will search for an expense code with the words 'delay rental' as part of the code name, and use that expense code to expense the delay rental to the wells.