Form 1065 & Schedule K-1

The 1065 & K-1 Processing allows partnerships to be defined. They can be defined on the Program/Partnership Information screen. It also allows a distribution to be made to the partnership at any time outside of a regular revenue distribution.

You can print the Form 1065 & Schedule K-1 onto the pre-printed forms directly from SherWare for your partnerships. This is an optional module to the software that can be added at any time.

Setting up the 1065 & K-1 Processing
1. Create a Partnership on the Program/Partnerships screen.
2. On the Division of Interest screen associate each interest that should be calculated on the 1065/K-1 at year end with the partnership by entering the partnership code into the "Program" field.

How it works
At year end when you build the 1065/K-1, it will build them based on the owner history that was automatically created throughout the year. The records will be totaled by partnership based upon the well division of interests that were defined with partnership codes.

NOTE: Since they are based on history the 1065/K-1 will not include any activity that took place on a run closing prior to when the Program was associated with the Division of Interest. If this history needs to be included you can manually add it at year end for each record on the "Modify 1065 File" or "Modify K-1 File" screen after the 1065 & K-1 are built. Another option (will take a lot more work) is to look up each owner history record for an owner and associate the history to the program before the 1065 & K-1 is built.

Year-End Processing
At the end of the year when you are ready to print the 1065 & K-1 you can perform the following steps: