Misc Preferences

The Miscellaneous Preferences contain several options for various areas of the software.

Calculate Days On From Period Ranges Entered
When entering revenue you will be asked to enter a period range for the days that the production you are entering is from. After the beginning and ending dates are entered you will need to enter the "Days On" which is the total number of days included in this range of dates. With this option marked, the "Days on" field will be calculated automatically. If you do not mark this option then you will have to fill in the number of days.

Show Inactive Wells in Well Lists
When using a lookup list to select a well, any wells that have a status of "Inactive" will not appear on the list unless this option is marked. This is a way to condense the list to only those that you use. This will not delete the well, it will just leave it off the list.

Send All Revenue and Expenses to Allocation Files
The Allocation File is special processing in the software that allows you to hold revenue and expenses in a way that they will not get processed on a run closing. Marking this option will place all revenue and expenses in this allocation file when you enter them. This creates an additional step for you because you will then have to go to the allocation file and release the desired revenue and expenses so that they are on the "New Run". Once they are on the "New Run" you will be able to see them on preliminary reports, and they will be processed when you close the next run. Generally this option is not used. Make sure you have an understanding of the allocation file before marking this option.

NOTE: Any entries entered directly onto the Well Revenue by Well or Well Expenses by Well windows will not be sent to the allocation file. These windows display everything that is on the "new run" (ready to be processed on a run closing) so anything entered here will be placed on the new run instead of the allocation file regardless of how this option is marked.

Turn on Edit Mode
When you open many of the windows within SherWare it will be displaying the last record that was viewed. Any changes to the record will modify that record instead of starting a new record or browsing to a different record. This can be confusing for some people and may lead to accidental modification of some data. Marking this option will lock every window when it is opened so that the information can not be changed accidentally. When you do want to add a new record or make a change to an existing one you can do so by pressing the edit button in the toolbar. The edit button will unlock the window so that you can add a new record or modify an existing one.
This will be helpful in preventing mistakes until you get used to the software, but can be annoying because you will have an extra click every time you want to edit a record.

Maximum Rounding to Adjust
By default the maximum rounding amount to adjust is $.50. If you would like a different amount as the maximum to adjust, enter it here.

Adjust to Highest Owner ID in Well
By default the system adjusts any rounding to the working interest owner with the lowest owner ID in each well, unless a different owner is specified on the Well Information record. If you would like the working interest owner with the highest owner ID to have rounding adjusted to them, check the option box beside the rounding amount. We have noticed that generally either the highest or lowest owner ID is assigned to the operator's interest and that this is the owner that is usually selected to allocate any rounding to. Because of this we include this option so that it is easier to adjust rounding to that owner if this is the case.

If an owner is selected in the "Adjust Rounding To" field found on the options tab of the well information window then that owner will be used instead of the owner with the highest or lowest ID in the well regardless of how this option is marked.

Gathering Charge per MCF
If you will be setting up gathering to be calculated by the software and charged to the wells then you can enter a default price here. This is the price per MCF that will be used to calculate the Gathering charge for each well. The charge will be calculated when you close a revenue run. This is helpful when charging the same amount to multiple wells.
The price can also be specified on the Options tab of the well information window. The price specified for a specific well will override the global amount specified here.

Compression Charge per MCF
If you will be setting up compression to be calculated by the software and charged to the wells then you can enter a default price here. This is the price per MCF that will be used to calculate the compression charge for each well. The charge will be calculated when you close a revenue run. This is helpful when charging the same amount to multiple wells.
The price can also be specified on the Options tab of the well information window. The price specified for a specific well will override the global amount specified here.

Vendor Compression and Gathering Paid To
If you will be setting up compression to be calculated by the software and charged to the wells, the vendor specified here will have a check generated for them in SherWare for the amount of any compression and gathering charges when the run is closed. If a vendor is not specified, the amounts will post to the account specified as the "Comp & Gathering" account in the QuickBooks Posting preferences.

Minimum Royalty Int 1099 Amount:
Enter the minimum amount that must be earned before a 1099 will be created for a Royalty/override owner. When the 1099s are created they will only be created for royalty/override owners if they earned more than the amount specified here. The minimum is specified each year by the IRS within the instructions for the Form 1099-Misc.

Minimum Working Int 1099 Amount:
Enter the minimum amount of non-employee compensation that must be earned before a 1099 will be created for a working interest owner. When the 1099s are created they will only be created for working interest owners and vendors if they earned more than the amount specified here. The minimum is specified each year by the IRS within the instructions for the Form 1099-Misc.

Build 1099s Based on Gross Revenue
By default, this option will be marked and the system will create 1099s for owners based on gross revenue received. Unmarking this option allows you to create 1099s based on net revenue. We suggest leaving this marked.

There was always debate between our clients about whether the net amount (check amount) or the gross income earned should be reported to the IRS on the 1099. The wording of the IRS instructions used to be fairly vague, so we were forced to offer an option about whether the file should be built using net revenue or gross revenue. The current wording of the IRS (from the 2009-2013 instructions) is much clearer: "Enter gross royalty payments of $10 or more before reduction for severance and other taxes that may have been withheld and paid." And "Gross oil and gas payments for a working interest." We continue to offer the option for how to report the revenue, but it has become clearer in recent years that the intent of the IRS is to have the gross revenue reported to them for all oil and gas 1099s created.

Revenue Account No.
This field is only used for LA State Reports. These reports are optional and not included unless you purchased them in addition to the software. You can leave this field blank or fill in the number assigned to you for the LA reports.

Company Reporting No.
This field is only used for LA State Reports. These reports are optional and not included unless you purchased them in addition to the software. You can leave this field blank or fill in the number assigned to you for the LA reports.