Receive Owner Net Payments

The Receive Owner Net Payments window will allow you to enter payments received from Net owners and choose which outstanding deficits or wells to apply payments toward.

Click the New button in the toolbar to prepare the window to receive a new payment.

A "Net" interest is an owner's interest in a well that does not have the "JIB Int" option marked on the division of interest window. When an interest is a Net interest all of the revenue and expenses will be netted together when a revenue run is processed and a check will be created for the net total. If the expenses exceed the revenue then the balance will be stored as a "deficit" until it is paid or another revenue run is closed that has enough revenue to cover the owner's deficit balance. When you receive an owner's payment for a deficit that was created on a revenue run closing you will enter it on this screen.

When a payment is recorded on this window a Debit will be made to the checking account specified at the top of the window and a credit will be made to the account specified as your Owner Deficit Receivable account in the preferences.

You can view the suspense report after receiving a payment to see how the owners suspense was affected by the payment.

Payments for owners that are not in deficit: When receiving a payment for an owner that has a Legal Suspense (minimum, hold, frequency) balance instead of a deficit balance you will need to make a journal entry to debit the Owner Deficit Receivable account and Credit the Legal/Min Suspense Account. This needs to be done because the legal suspense balance is not stored in the same account as the deficit suspense is and this screen only posts to the deficit account.

Payments for owners who no longer hold the interest: If an owner is in deficit but no longer has an interest in the well then the payment will still apply to the owners balance but it will not be able to move the suspense history to well history. This will affect 1099s. To accommodate this you will need to "Clear Owner Suspense" from the utilities menu for this owner's interest. That will move the detail of what made up the suspense to the well history. The balance will be zero so it won't really affect anything other than the well history.
If you run into this situation a warning message will appear explaining this. The message will say: "One or more wells have had their balance paid completely. This owner no longer has an interest in the well, so the suspense won't be moved to Owner History unless you use Utilities > Clear Owner Suspense to clear that well(s) balance."

If the owner does not have a suspense balance showing in the bottom of the window you can leave the full amount unapplied and it will create a credit. The credit will then be released back to the owner when the next run is closed, unless you put the owner or interest on hold.

Credit Memo

Owner ID
The ID of the owner that the payment was received from. The owner ID can be typed in or selected from a list. To see a list of available IDs you can press F2 or click on the "Owner ID" button. Once the owner ID has been entered, all outstanding invoices for this customer will be brought into the list box at the bottom of the window.

Cash Account
The bank account that you want the check posted to. A debit to this account will be made when the payment is saved.

Date
The date the payment is received. Payments must be received with a date at least one day prior to the "Check/Posting" date used on a revenue run closing in order for the payment to affect the balance of that revenue run.
TIP: If using today for the payment date you can leave it blank and just tab out of the field. The software will automatically fill in today's date.

Don't Post to QuickBooks
Check this option if you do not want the payment to be posted to QuickBooks. If checked, the payment will not post to QuickBooks, but will still be applied to the owner's suspense balance. This option should only be used if the payment has already been recorded in QuickBooks previously.

Amount
Enter the amount of the payment.

The system will automatically apply the payment to the wells after the amount is filled in. If the payment exactly matches a wells balance, the system will automatically apply the payment to that well. If it does not exactly match a wells balance the system pay off the top well in the list first then work down the list until the payment is fully applied. If the payment is larger than what the owner owes then an amount will be left in the "Unapplied Amount" field and you will have to choose which well the credit gets assigned to. You can change the way that the payment is applied by typing in the amounts to apply to each well in the payment column.

Check No.
Enter the check number of the check that you are receiving.

Balance
The balance field displays the owner's current outstanding balance for all wells. This field is a reference, you will not be able to type into it.

Amount Applied
This displays the amount of the payment that has been applied to invoices. It is a total of everything that has been entered in the Payment column. You will not be able to save the payment until this field matches the payment amount that is specified in the amount field. This field is a reference, you will not be able to type into it.

Unapplied Amount
This displays the amount of the payment that has not been applied to the customer's outstanding invoices. This amount will have to be added to the payment column before you will be able to save the payment. This field is a reference, you will not be able to type into it.

Date Column
The date of a run that contributed to the current suspense balance.

Well ID
The Well ID for the balance shown in this detail line.

Balance
The wells current outstanding balance. If a negative amount is shown then it is a credit balance. You can enter this negative amount in the payment column when you receive your next payment and it will allow you to increase the amount applied to another well.

Payment
Enter the amount of the payment that will be applied to each well. The total amount entered in this column needs to equal the payment that was entered in the "Amount" field above. You can refer to the "Amount Applied" and "Unapplied Amount" fields to see how much of the payment needs applied yet.
When the full amount of the payment has been applied, press the Save button in the toolbar.

Credit Memos
If a larger amount is entered in the "Payment" column than is due for a well in the "Balance" column then it will create a credit balance for that well. If an owners balance is paid in full and is left with a credit balance from the payment then the credit will likely be released back to him when the next revenue run is closed. It will just be added to his check. If you do not want it to be released back to him then you will need to put either the owner, or the owners interest in the well on hold.

If the credit is not released prior to receiving the next payment you may see a negative amount in the balance column. To apply the credit you can enter the negative amount in the payment column. This will then reduce the amount applied and allow you to enter apply a larger amount to another well.