Revenue Clearing Reconciliation

The Revenue Clearing Reconciliation report will now show you all activity posted to the Revenue Clearing account by class (well). Therefore, you can now easily see all amounts crediting and debiting by well. Revenue will be credited to the Revenue Clearing account by well and detailed by purchaser as it is entered in the revenue entry screens within the Disbursement & JIB Manager. All positive net revenue will show as a credit to the Revenue Clearing account using the date of the entry. All negative revenue (taxes, transportation) will show as a debit to the Revenue Clearing account using the date of the entry.

You can use the Revenue/Expense Detail report from the Disbursement & JIB Manager to compare to your Revenue Clearing Reconciliation report in QuickBooks. Run the Revenue/Expense Detail report by run number so that you can check the amounts in your clearing account based on run closings. All positive revenue in the Net Total column should show as credits on the Revenue Clearing Reconciliation report for that well. All negative amounts in the Net Total column should show as debits on the Revenue Clearing Reconciliation report for that well. ***Important*** Make sure that all net entries on the Revenue/Expense Detail report appear on the Revenue Clearing Reconciliation report. If not all entries appear, find out why it’s not posted to the Revenue Clearing account, and then correct the entry to make sure it’s being posted to the Revenue Clearing account.

If you are using the Allocation File to hold revenue until you are ready to process it on a Revenue Run closing, then you should also use the Unallocated Revenue and Expense report from the Disbursement & JIB Manager to make sure that all revenue in your allocation file is posted to the Revenue Clearing account in QuickBooks. If not all entries appear, find out why it’s not posted to the Revenue Clearing account, and then correct the entry to make sure it’s being posted to the Revenue Clearing account.

The balance of your Revenue Clearing account should be the total of revenue that has not been closed on a Revenue Run in the Disbursement & JIB Manager. This will include Total Net Income in the New Run (as shown on the Revenue/Expense Detail Report), and any revenue being held in the Allocation File. If all revenue that has been entered into the Disbursement & JIB Manager has been processed on a Revenue Run closing, and paid out, then the balance of your Revenue Clearing Account should be zero.

When revenue is processed on a Revenue Run in the Disbursement & JIB Manager, the system will create disbursement checks for the owners who should receive that revenue. After you have printed their disbursement checks, you will Post Revenue Run to QuickBooks from the Tasks menu. This process will place the disbursement checks in your check register in QuickBooks, and it will also create the clearing entries in your Revenue Clearing account, (and Expense Clearing account if netting expense from owners’ revenue). The clearing entry in the Revenue Clearing account will show as a debit for the amount paid to the owner for that well. You can check the debit amounts by owner with the Disbursement by Well report from the Well Reports menu within the Disbursement & JIB Manager (Integrated Edition). View this report as of Accounting Date, using the run closing date. This will report all revenue amounts allocated to each owner for the given range of wells. The total debits to the Revenue Clearing Account for each owner in the class will match the amount of income reported for the owner on the Disbursement by Well report for that well.