Fixed Expenses

Fixed Expenses can be setup for any well that has expenses that are the same every month. Typically this is used for operating or disbursement fees that are charged by the operator. This allows you to simply release a template of expenses for multiple wells in one quick step.

A Template for the Well Expenses by Well Window:
The fixed expenses are a template for the Well Expenses by Well window. When you "Release Fixed Expenses" it is copying the information from this template, and pasting it onto the Well Expenses by Well window. The posting and processing of these expenses is then exactly the same as if you manually entered each of them directly on the Well Expenses by Well window. Once released, these expenses will be displayed in red text on the Well Expenses by Well window.

Setting up fixed Expenses:
These expenses can be setup under the maintain menu on the Fixed Expenses window. Go to each well and enter the expenses for it. If the same expense needs setup for multiple wells you can copy the expense from one well to another with the button at the bottom of the window. Select the expense that needs copied, then click on the Copy Expenses button. It will let you choose which wells to copy the expense to.

Releasing Fixed Expenses:
You can release fixed expenses under the tasks menu by selecting "Release Fixed Expenses". You can release the expenses for all wells or individually select specific wells to release.

When to release:
You can release these expenses at any time. Generally they will be released once a month. It is a good idea to include this release in a routine that is done every month so that you don't forget to release them. A lot of SherWare users include the release as the first step in the run closing process.

Backing out Fixed Expenses:
If you have released fixed expenses and then later decide that you don't want them released yet, you can "Back out fixed expenses" from the Utilities menu. This will remove all fixed expenses from the Well Expenses by Well window.

Vendor Check:
A vendor check will be created when the run is closed to pay the vendor of each of the expenses entered on the Well Expenses By Well window.

Adjustments:
If a fixed expense needs to process differently for just one instance, then you can edit the expense on the Well Expenses by Well window after it is released. If the fixed expense needs to process differently from this point forward, then you can edit the expense on the Fixed Expenses window prior to releasing it.

Fixed Expenses vs Recurring Bills:
Fixed Expenses can all be released in one step and then are paid when the run is closed and a check is automatically created. Typically this is mostly used for expenses charged by the operator. If the vendor for some of these expenses represents the operator and is setup to post directly to an income account, then you should set the expenses up as
Fixed Expenses.
Recurring Bills are setup on a bill by bill basis. Each bill has to be released individually on the Enter Bills window. You then have to pay each bill on the Pay Bills window. You can pay the bill at any time and don't have to wait for the run closing. This is the better option for outside vendors that you will need to pay prior to the run closing.