OGBOOKS User Manual

The OGBOOKS software is managed by a Systems Administrator. Every user is required to login to the software by providing an acceptable Username and Password. The Administrator can set up users and control what companies, modules, master files, and menu items the user has access to. The Administrator has access to a special menu that is only available when logged in as “Admin”. This menu includes the following menu items:

GOTO COMMAND MODE: Allows the Administrator to go behind the scenes and manipulate the data files directly, usually under the direction of the manufacturer.

USERS & PASSWORDS: Allows the Administrator to setup the Username & Password for a new user or to change the Username & Password of an existing user.

USER RESTRICTIONS: Allows the Administrator to control which companies, menu items, and master files each user has access to. A user can be allowed full read/write access, no access or read-only access to a master file.

LOCK G/L ACCOUNTING PERIODS: Allows the Administrator to prohibit activity from being posted to an accounting period in G/L once that period is finished.

CONFIGURE WORKSTATION: no longer has a function. Kept for backward compatibility.

CHECK AND FORMS ALIGNMENT: Allows the Administrator to align the printing of checks, 1099, W-2, and deposit slips.

SET SYSTEM DEFAULT VALUES: Allows the Administrator to set global default values including:

· Default lookup values

· Turn Help Tips, Report Footer, Hilite Grids, Visit to the Doctor ON or OFF

BACKUP / RESTORE DATA: Allows the Administrator to backup or restore data files for any company to any drive.

BUILD TRAVEL DISK: Allows the Administrator to copy all of the programs and files onto a USB thumb drive which can be taken to another computer and the OGBOOKS software can be run on that computer without needing to install anything on the other computer. As data is entered, the data files on the thumb drive are updated. When finished running, the thumb drive can be returned to the original computer and data files can be transferred back to the original computer using the “Restore from Travel Disk” menu item.

RESTORE FROM TRAVEL DISK: Allows the Administrator to copy all the data files on the Travel Disk back onto the hard disk on the main computer.

VALIDATE DATABASE: Allows the Administrator to ensure that the database for a specified company recognizes all of the data files for that company.

PURGE HISTORY FILES: Allows the Administrator to shrink the size of those files which continue to increase each month by deleting data dated prior to a specified date.

System Overview

Login

The first screen to appear will allow the user to enter his/her username, password, date, and to select the desired company. Then any of the following three processes can occur depending on existing conditions:

NEW FEATURES: Whenever software updates are installed, the manufacturer will send along a “Software Alert” that is a screen display conveying information about the new change. These Software Alerts will continue to be displayed each time you login until the user specifies the alert should not be shown again by checking the available box.

REINDEXING: All data files for the selected company will be reindexed the first time that company is selected each month. This is a maintenance feature that keeps the data files cleaned up and working properly.

REMINDERS: The built-in calendar allows the user to enter reminders for any date. The login process examines the existing reminders and any reminders dated prior to the user specified date will be displayed on the screen. Reminders remain in effect until deleted by the user.

Once these processes are completed, the main OGBOOKS menu will appear.

System Overview

Menus

SETUP NEW COMPANY: Creates all the required data files for a new company.

SELECT COMPANY: Allows user to switch to a different company.

DELETE COMPANY: Allows user to delete all the data files for a specified company.

CONFIGURATION MAINTENANCE: Allows user to specify configuration options for the current company

REBUILD DATA FILE INDEXES: Allows user to recreate the indexes for all data files in selected application modules for the current company

CUSTOMIZE REPORTS: Allows user to customize the layout and other things for some reports.

PRINT LABELS: Allows user to print labels on Avery Laser Label forms for the current company.

VISIT TO THE DOCTOR: Allows user to produce a report comparing the G/L balances for payables, receivables, suspense, etc. to the sum of the actual data from the data files and shows any variance.

INITIALLY LOAD DATA FILES: Allows user to enter payables, receivables, suspense, etc. into the appropriate data files without posting to G/L.

CALCULATOR: Opens the calculator program.

CALENDAR: Opens the calendar program.

QUIK-PRINT LASER CHECK: Allows user to quickly print a check without it actually going on the books. It will need to be put in the system at a later time.

EXPORT DATA: Allows user to take specified data from the accounting files and create new files in Lotus, Excel, Text, or Comma Delimited formats.

SET DEFAULT PRINTER: Allows user to change the default printer used by OGBOOKS.

SET DEFAULT SCANNER: Allows user to change the default scanner used by OGBOOKS.

OWNERSHIP TRANSFER: Allows user to automatically change any Distribution Level that contains an interest for a specified owner to a different owner.

QUICK LISTS: Allows user to cause a special report to be printed by providing a definition for a report and the data to be included on the report.

MAILMERGE / EMAIL OWNERS: Allows user to create a data file of specified data which can be used with MS WORD to perform a mailmerge.

SET USER DEFAULT VALUES: Set some default options for the logged in user.

PRINT POSTING REPORTS: Allows the user to re-print the last posting reports.

REVENUE CLEARING REPORT: A report to show the revenue entered vs revenue processed to confirm everything that was entered has been processed.

VIRTUAL FILING CABINET: Allows you to scan documents using a high speed scanner and save them as PDF files on your hard drive. There are scan buttons inside other modules that will allow you to scan documents and associate them with data. All scanned documents will show up in the Virtual Filing Cabinet.

This menu displays all of the modules and each menu item will have a sub-menu with all the tasks from the selected module. See the Applications Menu chapter for in-depth view at each sub-menu in the Applications menu.

G/L, YEAR-END CLOSEOUT: Closes the books for the current year, rolls forward ending balances to next year and makes the next year the current year.

P/R, YEAR-END CLOSEOUT: Resets the employee earnings to zero.

P/R, REVIEW W-2 DATA: Allows the user to edit the employee earnings data that will be shown on the W-2 form.

P/R, OTHER REPORTABLE COMPENSATION: Allows the user to enter other amounts that must be included on the W-2 form.

P/R, PROCESS W-2s: Allows the user to print actual W-2 forms or to create a file that can be submitted to the IRS.

1099, REVIEW A/P DATA: Allows the user to edit payments made to vendors to be shown on 1099 forms.

1099, REVIEW REVENUE DATA: Allows the user to edit payments of revenues made to royalty, override, and working interest owners to be shown on 1099 forms.

1099, REVIEW L/R DATA: Allows the user to edit payments of delay rentals, bonuses, etc made to land owners to be shown on 1099 forms.

1099, CREATE 1099 FORMS/FILE: Allows the user to print actual 1099 forms, print letters to persons with 1099 eligible amounts, or to create a file which can be submitted later to the IRS.

PRINT COLORADO DR21 FORMS: Allows the user to print actual DR21 forms to be sent to the State of Colorado.

KENTUCKY YEAR END FILE: Creates a file for Kentucky reporting.

KENTUCKY ANNUAL REPORT OF MONTHLY PRODUCTION: Creates a file of monthly production for Kentucky reporting.

This menu item allows the user to go directly to a predefined website address on the internet. A list of website addresses is provided and the user can add other websites. Once connected to the internet, all features are available such as favorites, email, etc. When finished, the user is returned to the OGBOOKS main menu. Basically, this is an internet “favorites” feature to be used when OGBOOKS is in full screen.

STANDARDS & CONVENTIONS: Shows the meanings of various colors and the various mouse functions used in OGBOOKS.

USER’S MANUAL: Allows the user to view this document.

THIS VERSION: Displays the software version number, expiration date, and all connected users.

HELP-SUBJECTS: Allows the user to select a subject and produces a display explaining the subject

REVIEW NEW FEATURES: Allows the user to view/print any of the prior alerts regarding new features.

REMOTE SUPPORT: This is used to allow Bayside to connect remotely to your computer and give you training or support over the internet.

System Overview

Calculator

A simple, easy-to-use calculator is available for performing simple math functions. This calculator allows the user to add, subtract, multiple and divide with a running tape displayed on the screen. The calculator can be accessed in two ways. The menu item “CALCULATOR” on the Utilities menu takes you directly to the calculator screen. When you are finished, click on the “CLICK HERE TO RETURN” box to return to the Master menu. The second method of accessing the calculator is available from any screen on which you are entering a numeric field. If you double click on the numeric field, the calculator will be activated. When you are finished with the calculator, two options are available. You can click on “CLICK HERE TO RETURN W/O BALANCE” box and you will be returned to the original screen and the calculation result will be ignored. Or, you can click the “CLICK HERE TO STORE BALANCE” box and you will be returned to the original screen with the results of the calculation stored as the value of the numeric field.

System Overview

Calendar

A simple, easy-to-use calendar is available for establishing dates. This calendar always displays 3 months at a time starting with the prior, current, and next month. You can advance or reverse the months shown. The calendar can be accessed in two ways. A menu item “CALENDAR” on the Utilities menu takes you directly to the calendar screen. When you are finished, click the “CLICK HERE TO RETURN” box and you will be returned to the Master menu. The second method of accessing the calendar is available from any screen on which you are entering a date field. If you double click on the date field, the calendar will be activated. When you are finished with the calendar, two options are available. You can click the “RETURN & IGNORE SELECTED DATE” box to return to the original screen with the selected date ignored. Or, you can click the “RETURN & SAVE SELECTED DATE” box to return to the original screen with the selected date stored as the value of the date field.

System Overview

Quik-Print Laser Check

System Overview

Printing / Saving Reports

REPORT LAYOUT

All reports are intended to be printed on a laser printer. The vast majority of the reports are designed to print in portrait mode on a letter size page. Only those reports that exceed the width of the letter size page are printed in landscape mode on letter size paper. The data on the report is positioned such that sufficient room is left on the left margin to accommodate three-hole punched paper if desired. Also an option is available when printing any report to have a “Report Footer” printed. The Report Footer consists of one line at the bottom right corner of each page showing the name of the report, date of the report, and the page number. The Report Footer can be very useful when browsing thru a stack of bound reports.

Report Engines

There are 2 different report engines in OGBOOKS. The most common is used for normal reports. It’s toolbar will look like this:

From left to right, the buttons are:

Button	Description
First Page	Go to the first page
Previous Page	Go to the previous page
GoTo Page	Allows you to type in a page number to go to
Next Page	Go to the next page
Last Page	Go to the last page
Zoom Level	Allows you to zoom in or out
One Page	Show only one page at a time
Two Page	Show two pages at a time side by side
Four Page	Show four pages at a time
Miniatures	Show all pages in miniature form and allow you to select a page to go to
Find	Search the document for a particular text
Printer	Select the printer to use
Copies	Enter the number of copies to print
Save	Save the report as PDF, WORD, EXCEL, IMAGE, HTML
Email	Send report by email
Printer Settings	Bring up the printer settings screen before printing
Print	Print the report with default settings
Settings	Shows the settings for this toolbar. You can set the default layout, as well as exporting and emailing settings here.
Exit	Close the report

The second report engine is used for drilldown capabilities. Some reports will have text that shows up in blue font; this text can be click to get a drilldown that will either open a new report showing more information about the clicked text, or open a form allowing you to input or change data. The report toolbar will look like this:

From left to right, the buttons are

Button	Description
First Page	Go to the first page
Previous Page	Go to the previous page
Current Page	The current page number
Total Pages	The total number of pages
Next Page	Go to the next page
Last Page	Go to the last page
Zoom Level	Here you can set the zoom level
Find	Search the report for a particular text
Print	Open the printer dialog
Save	Save the report to different formats including PDF and XLSX
Settings	Change the default settings for reports
Excel	Quickly save the report to an excel file
Exit	Close the report

System Overview

Multiple Companies

Books can be maintained for multiple companies, as many companies as you need. Each company must be “setup” by executing the “SETUP NEW COMPANY” menu item on the Company menu. When setting up a new company, you must assign the company a unique, 3 alphanumeric company number. These three digits can contain any combination of alphabetic letters and/or numbers. Blanks and special characters are not allowed. When the software is initially installed, one company already exists , the Bayside Training Company which has a 3-digit company number of “999”. When a company is setup, data files are created on your hard disk, unique to that company and in fact the file names contain the 3-digit company number. Each company will have its own set of data files on the hard disk. The data files for each company are placed in a separate folder on the hard disk.

System Overview

ID Lookup

The entire system allows the user to “lookup” vendor numbers, owner numbers, purchaser numbers, property number, AFE numbers, distribution levels, product codes, lease numbers, employee numbers, and G/L account numbers. Although specific numbers are assigned to each of these items when they are setup, the burden of remembering these numbers or requiring the user to review a printed list to determine a certain number has been eliminated. When entering data, you will encounter an entry field with a blue-green background indicating the user can either enter the desired number or right-click with the mouse to search for an ID by name.

System Overview

Checks

OGBOOKS can work with all check formats, but will need to be setup before printing. You can either use pre-printed check stock that already has your bank information and check numbers on it, or use blank check stock where your printer will print everything on the check for you. We recommend using blank check stock like since this is much cheaper. Here is an Amazon link for blank check stock, you can also buy from Office Depot or other stores:

https://www.amazon.com/Compuchecks-Blank-Check-Stock-Diamond/dp/B0030EU670

System Overview

Backup and Restore Data

The System Administrator menu allows the Administrator to backup/restore all of the data files from a specified company onto any recordable device. This includes any internal hard disk, external hard disk, floppy diskette, memory stick on a USB port, etc.

If you have Cloud Backups enabled, your backups will be sent to ogbooks.com securely. You will be able to download cloud backups in the event that your computer crashes or other failures occur.

When you restore a data backup, the entire company is reset back to the point that the backup was made.

System Overview

Automatic Backups

Whenever the user posts JIB invoices or posts revenue checks, the initial process consists of a backup being performed automatically. The intent of this automatic backup is to ensure you have a copy of the current files before the posting process proceeds thereby providing the ability to restore all data files as they were immediately before the posting process concluded. These backups will be uploaded to ogbooks.com if you have the Cloud Backups option turned on.

System Overview

Data Integrity

It is critical that a simple, easy review can be performed at any time to ensure the integrity of your data files. The following 3 menu items are provided to allow the user to perform this review of data files at any time:

The “Visit To The Doctor” menu on the Utilities menu calculates the G/L balance assuming all transactions were posted to the books and compares that G/L balance to the corresponding data files to verify they are in agreement. The balances that are checked include:

· Accounts Payable–the G/L balance is compared to the sum of the A/P invoices waiting to be paid.

· Accounts Receivable–the G/L balance is compared to the sum of the A/R invoices currently unpaid.

· Unbilled Expenses–the sum of all billable accounts are compared to the expenses waiting to be billed in the JIB module

· Minimum Suspense–the G/L balance is compared to the revenues currently held in minimum suspense

· Legal Suspense–the G/L balance is compared to the revenues currently held in legal suspense

· Bank Balances–the G/L balance is compared to the current balance found in the Bank Reconciliation data file

The “Reconcile G/L vs Property Expenses” menu on the Investor Management menu compares the cutback accounts (owner 999500 interest) to the amounts shown in the property history files in Investor Management. These should agree with each other.

The “Print A/R Balance Validation Report” on the Accounts Receivable menu includes any owner whose current unpaid A/R invoices do not agree with the current balance as shown on the A/R Balance Forward Report. This data is maintained in 2 different data files and they should always agree.

System Overview

Keyboard Shortcuts

SCREENSHOT

Pressing CTRL+P at any time will take a screenshot of the program and you will be able to print or email this screenshot. This function should work with most computers, but may not work on older systems.

DASHBOARD

Pressing CTRL+D at any time will bring up a dashboard showing certain account balances.

OIL RUNNER GAME

Pressing CTRL+G at any time will bring up a simple oil runner game in your browser. Play this when you are board and need a break.

System Overview

Distribution Levels

A Distribution Level is a 2-digit number used to denote a list of owners and their decimal interest on a specific property. These are sometimes referred to as "Decks" in the oil and gas industry. Distribution Levels from 01-49 are restricted to Expenses and Distribution Levels from 50-99 are restricted to Revenues. The decimal interests on every Distribution Level must total 1.0. Then when you have property expenses or revenues, you must not only specify the property number but also specify the Distribution Level to be used to divide the expense or the revenues. Each property will have its own set of distribution levels.

Application Overview

Accounts Payable

Vendors must be identified with a unique 6-digit ID number. Once established in the ID Master File, this vendor number can be used throughout all software modules.

Both prepaid invoices (already paid by a manual check) and active invoices (need to be paid) are entered into the computer. As these invoices are entered, the user can distribute the invoice to appropriate G/L accounts, appropriate AFE’s, and/or charge portions of the invoice to properties for billing or for accrual against advances already paid on the property by the owners. As the invoices are posted into the system, charges are automatically transferred to the other software modules (G/L, JIB, AFE, etc).

For A/P invoices that are identical each month, Recurring A/P Invoices can be created and can be posted month after month without reentering the data. As with regular invoices, the recurring invoices can distribute charges to AFE’s, G/L accounts, and properties for billing.

A vendor history file is maintained for all invoices paid by the computer or entered as prepaid invoices. This history file is automatically examined as new invoices are entered to determine if the invoice has already been entered. The user can also examine the vendor history file to determine when/if invoices have been paid.

Paying A/P invoices consists of first selecting the invoices to be paid, then writing the actual checks, and finally posting the last check run. Checks can be printed as often as necessary in order to obtain the correct results. Unless the final step of posting the A/P checks is performed, the invoices remain unpaid and the user can rerun the selection and printing of checks over and over.

Once an active invoice has been posted into the system, it can be removed by only 2 methods. One method is to pay the invoice on a check and post the check run. This will cause the invoice to be moved from the unpaid invoice files to the Vendor History file. The second method of removing an invoice is to run the “REMOVE A/P INVOICES” menu item on the Applicatios/A/P menu. Entering invoices that you want to remove and then posting those invoices will result in the invoices being removed from A/P.

Several methods are available to determine which invoices are awaiting payment. The “REVIEW UNPAID A/P INVOICES” menu item on the Applications/A/P menu allows the user to obtain a report showing all unpaid invoices. The “CASH REQUIREMENTS” menu item on the Applications/A/P menu allows the user to obtain a report showing each unpaid invoice, by vendor, with the amount owed aged into one of 3 columns. The “A/P INVOICE INQUIRY” menu item on the Applications/A/P menu allows the user to enter any combination of vendor #, invoice # or invoice amount and a screen display will be created which will show all invoices meeting that criteria whether they have been paid or not.

Application Overview

Accounts Receivable

The Accounts Receivable module centers around a file which contains all the open, unpaid invoices. There are 4 different methods by which invoices are added to this file. They are:

· MANUAL INVOICES are those invoices that are produced by hand. They can be entered into the open receivables file by running the menu item “ENTER MANUAL A/R INVOICES” on the Applications/A/R menu and running the menu item “POST MANUAL A/R INVOICES” on the Applications/A/R menu.

· MISCELLANEOUS INVOICES are those invoices that are generated which are not

· associated with a property. Charges to be billed can be entered using the “ENTER MISC A/R INVOICES” menu item on the Applications/A/R. The invoice can be printed using the “PRINT MISC A/R INVOICES” menu item on the Applications/A/R. The printed invoices can be posted using the “POST MISC A/R INVOICES” menu item on the Applications/A/R.

· INITIALLY LOAD DATA FILES has been provided to allow the user to add, change, or delete the existing A/R invoices directly into the open receivables file without updating G/L. This menu item is found on the Utilities menu.

· JIB INVOICES are those invoices produced by the Joint Interest Billing module. When the JIB invoices are posted, they are added to the open receivables file.

Invoices are removed from the open receivables file by using the “ENTER CASH RECEIPTS” menu item on the Applications/A/R and the “POST CASH RECEIPTS” menu item on the Applications/A/R or by entering A/R journal entries via the “REMOVE A/R INVOICES” menu item on the Applications/A/R. Invoices are also removed from the open receivables file when they are “netted out” against revenues when the revenue checks are produced.

A history file is also maintained which has a record of all cash receipts and the history file can be reviewed to see all JIB payments from a specific owner or all revenue payments received from a specific purchaser.

Another history file is maintained to record all invoices, payments and adjustments to the A/R for each owner. The menu item “PRINT BALANCE FORWARD STATEMENT” on the Applications/A/R menu allows the user to see a history of an owner’s A/R balances.

Application Overview

Bank Reconciliation

The purpose of the Bank Reconciliation module is to maintain a check/deposit register for each bank account such that when a bank statement is received the reconciliation of that statement can be achieved with minimal effort. Bank accounts are maintained for each G/L cash account.

Each check processed by the software is automatically captured by the Bank Reconciliation module. Cash receipts are also captured automatically. The A/R module can be configured to post each cash receipt to Bank Reconciliation as a deposit or to post the entire batch of posted cash receipts as one big deposit to Bank Reconciliation.

A listing of your checkbook showing a running balance can be obtained at any time via the “PRINT CHECKBOOK LISTING” menu item on the Applications/B/R menu.

When a bank statement is received, the checks/deposits that have cleared the bank can be entered into the computer by using the “POST CLEARED CKS/DEPOSITS” menu item on the Applications/B/R menu. The user is prompted by having the oldest check/deposit which has not cleared the bank displayed on the screen and the user indicates whether it has cleared on this bank statement and then the next uncleared check/deposit is displayed.

The bank reconciliation files can then be reconciled against the bank statement to ensure they agree by using the “RECONCILE BANK STATEMENT” menu item on the Applications/B/R menu. The bank reconciliation files can also be reconciled against the G/L files by using the “RECONCILE TO GENERAL LEDGER” menu item on the Applications/B/R menu to ensure the bank reconciliation files agree with the checks/deposits posted to General Ledger.

Application Overview

General Ledger

Each of the other accounting modules can interface directly with the General Ledger module. As checks, invoices, JIB’s, revenues, cash receipts, etc are posted in the other software modules, and transactions are sent to the General Ledger module reflecting the debits & credits associated with the postings.

The General Ledger retains all detailed transactions for an unlimited number of years. Transactions can be posted to any month of any year. Everything in the G/L module is controlled by the “accounting period” rather than by a date. Once you are finished posting the books for an accounting period, that accounting period can be “locked” (at user’s discretion) to ensure that no further transactions are created or posted to that accounting period.

A report writer is used to format the financial statements. Each report format is called a schedule and is assigned a unique name by the user when it is created. There is no limit to the number of schedules that can be produced When the user becomes familiar with these details of creating a schedule, the “SCHEDULE MAINTENANCE” menu item on the Applications/G/L menu allows the user to create a new schedule, modify an existing schedule, or delete a schedule.

G/L transactions produced by the other software modules are collected in the G/L module as “pending transactions”. They are not yet on the books and as such will not appear on any G/L reports. Taking these pending transactions and posting them to the books is accomplished by using the “PRINT/POST PENDING TRANSACTIONS” menu item on the Applications/G/L menu. This menu item will print a report showing all pending transactions for the specified accounting period and check to ensure debits = credits and all accounts are valid. If any errors are found, the pending transactions will not be put on the books and the user must run the menu item “REVIEW JOURNAL ENTRIES” on the Applications/G/L menu to correct the pending transactions and then again run the “PRINT/POST PENDING TRANSACTIONS” menu item on the Applications/G/L menu. Once the transactions are posted to the books, all G/L reports will reflect these transactions.

The structure of the G/L account number is ten alphanumeric characters in total which are divided into a 2 digit department, 4 digit account #, and a 4 digit sub-account #. The assignment of these account numbers is at the discretion of the user. Even though the account is broken into these three parts, the fact is that every time a G/L account number is requested, the full 10 digit number must be entered. If you have 2 cash accounts, you could assign two different account numbers without a sub-account or you could assign the same account # with different sub-account numbers. The use of the department portion of the number is left to the user. However, even if the department number is not used, it remains the first two characters to be entered even if they are blank. It is suggested that in cases where you are not using the department portion of the account number, make the first two digits (department) “00” rather than making them 2 blanks. This will allow the entering of the first two digits from a 10-key pad along with the rest of the number.

Application Overview

Investor Management

As the Joint Interest Billings are posted, a history file of the property expenses is automatically maintained. Likewise, whenever the Revenue checks are posted, another history file of the property revenues/production is maintained. These two history files are maintained by property, by owner. The revenues are maintained both by month of production and by month of distribution (the month the revenues were distributed).

The Investor Management module consists of many reports, all of which are produced from the previously mentioned history files Some of the reports reflect only expenses; some reflect only revenues and production, while others reflect both revenues and expenses. Most reports allow the choice of month of production vs month of distribution, calendar YTD vs calendar YTD, one owners interest vs 8/8ths, and individual properties vs several properties added together. These choices are presented at the time the reports are run.

One report utilizes a report writer that therefore requires the prior creation of the definition of the report. This report writer is essentially identical to the report writer used in the G/L module to format financial statements. The formats for the I/M report writer are called LOS Definitions and you can have numerous definitions, each with it’s own unique, user-assigned name. The menu item “LOS DEFINITION MAINTENANCE” on the Applications/I/M menu provides the means of creating a new LOS Definition or revising an existing definition. The training company includes one LOS Definition called “demo” which can be referenced. Once the LOS Definition is created, the report can be printed by running the menu item “PRINT LEASE OPERATING STATEMENT” on the Applications/I/M menu.

The status of prepaid expenses, by owner, can be printed by running menu item “ADVANCE STATUS REPORT” on the Applications/I/M menu. This report will show all advance billings sent to an owner, whether they have been paid, all charges applied against the advance, and the balance of each owner’s advance account on a cash basis. The data required to produce this report is automatically collected by the Joint Interest Billing and Accounts Receivable modules.

The user can also track the status of Payout situations with the Investor Management module. Each Payout situation must be defined by running menu item “PAYOUT STATUS REPORT” on the Applications/I/M menu. A Payout consists of stating a start date, a dollar amount to be recovered, and how that net amount to be recovered is to be measured (8/8ths revenue, one owners net revenue, total WI net revenue, etc.). Multiple Payout situations can be defined at the same time. The menu item “PAYOUT STATUS REPORT” on the Applications/I/M menu also allows the printing of a report which shows the status of each Payout situation, showing how much has been recovered to-date and the remaining amount to be recovered.

Application Overview

Joint Interest Billing

The Joint Interest Billing module is basically intended to produce three types of statements. The normal Joint Interest Bill to each owner on a property for their portion of the property expenses (billable expenses), an Advance Billing to owners on a property for their portion of the anticipated expenses of a workover or drilling activity (advance billing), or a statement showing the Charges Against Advances for each owner on a property (charges against advances).

All billable expenses and/or charges against advances come to the Joint Interest Billing module from two sources; either Accounts Payable or from G/L journal entries. When invoices are entered into accounts payable, the entry includes the property to be billed (if any), the distribution level (list of owners) to be used for splitting the expense. This same information is provided whenever G/L journal entries are entered. As A/P invoices are posted and G/L journal entries are posted, charges to be billed are sent to the Joint Interest Billing module awaiting processing.

Advance billings are initiated by running the menu item “ENTER ADVANCE BILLING REQUESTS” on the Applications/JIB menu. This process results in the addition of an entry for an advance billing into the same file of charges waiting processing.

The charges waiting processing can be revised by running the menu item “REVIEW UNBILLED EXPENSES” on the Applications/JIB menu. This menu item allows the user to change the type of charge (billable expense, advance billing, or charge against advances), the distribution level, or description of the charge. Charges can’t be added or deleted nor can the amount be changed. This menu item also allows the user to obtain a report showing all charges awaiting processing. The user can identify debits and credits to the same property for the same amount and cause them to be removed from the billing.

The procedure for performing the actual billing is to run the menu item “SELECT CHARGES TO BILL” on the Applications/JIB menu, the menu item “PRINT JIB CONTROL REPORTS” on the Applications/JIB menu, the menu item “PRINT JIB INVOICES” on the Applications/JIB menu, and finally the menu item “POST JIB INVOICES” on the Applications/JIB menu. If at any time during this process it is determined that the results are not as desired, make whatever changes are required to the Distribution levels and charges and run this entire sequence again. The results of this sequence are not finalized unless the last step, menu item “POST JIB INVOICES” on the Applications/JIB menu ,is performed.

The JIB Control Reports are produced first for your review. This is an in-house report which shows all charges being billed on each property followed by the list of owners being billed with their %, their invoice number and the amount being billed to them. Review this report before proceeding to the next step of printing the actual JIB invoices.

Application Overview

Lease Records

Information concerning your leases can be entered into the computer by using the “LEASE RECORDS” menu item on the Applications/Master Files menu. Each lease must be assigned a unique 8-digit alphanumeric lease number by the user.

In addition to entering the basic lease information with this menu item, other information can also be entered by running the menu item ”LEASE PAYEE” on the Applications/L/R menu. Critical Actions can be entered (dates and associated actions) which must be accomplished by that date. Multiple critical actions can be entered for the same lease.

The main purpose of using the Lease Records module is to have one central repository for information regarding each lease. The menu item “Print Lease Expiration Report” on the Applications/L/R menu allows the user to obtain a list of all leases due to expire before a specified date. Checks for delay rentals, bonuses, minimum royalties, or shutin bonuses can be written to all applicable payees by running the menu item “Select Leases For Payment”, on the Applications/L/R menu, menu item “Print Checks” on the Applications/L/R menu, and menu item “Post Checks” on the Applications/L/R menu.

Histories of all payments are retained in a history file which provides the user with a means of reviewing who has been paid by running the menu item “Print Lease Payment History on the Applications/L/R menu as well as providing the information required to print 1099 forms at yearend.

The lease file can be searched for any lease meeting certain user supplied criteria regarding the county, state, prospect, expiration date, Pugh clause, and/or lease status (held by production, shutin, etc.). The menu item “Print Lease Inventory Report” on the Applications/L/R menu will produce a list of all leases meeting the user supplied criteria.

Application Overview

Payroll

Each employee must be setup in the employee master file by using the menu item “Employees” on the Applications/Master Files menu. Each employee must be assigned a unique 4-digit employee number. Both hourly employees and salaried employees can be setup. Tax tables are provided for the calculation of Federal income tax withholdings, social security withholdings, medicare withholdings, workman’s compensation withholding, and certain state income tax withholdings. The user can update the tax tables at any time.

Each company can have up to 26 standard deductions established for the withholding of such items as insurance, 401k, United Fund contributions, and wage garnishments. These deductions obviously differ from employee to employee therefore the amounts to be deducted in each category is maintained in the employee master file for a maximum of any 7 deductions.

Employees to be paid including the number of hours to be paid, any special pay rate, any special adjustments, and any hours to be billed on the next JIB run can be entered by using the menu item “Enter Timecards” on the Applications/Payroll menu. Once such information has been entered, the payroll is calculated (gross wages, taxes, deductions, etc.) by using the menu item “Calculate Deductions” on the Applications/Master Files menu. A report can then be printed for review before printing the actual checks by using the menu item “Print Payroll Review” on the Applications/Master Files menu. If changes are required, the input can be revised, the tax tables revised, or the employee master file can be revised and the menu item “Calculate Deductions” on the Applications/Master Files menu can be rerun thereby recalculating the entire payroll run.

Once the calculations are determined to be correct, the actual checks can be printed by using the menu item “Print Payroll Checks” on the Applications/Master Files menu. Even at this point, if the results are not as desired, the entire process can be rerun. The payroll run is not finalized until the menu item “Post Payroll Checks” on the Applications/Master Files menu has been completed. This final step will print a Final Check Register, update the YTD earnings, send transactions to G/L and send labor hours to the JIB module for any hours to be billed to a property.

A history of all payroll checks is maintained from which several reports are available. The menu item “Print Tax Deposit Report” on the Applications/Master Files menu will print a report detailing the amount needing to be deposited for the Federal income tax, social security, and medicare and also similar information for any state withholdings of income tax. The menu item “Print Quarterly Earnings” on the Applications/Master Files menu will print a report showing all information required on the federal 941 reports. The menu item “Print Workman’s Compensation Report” on the Applications/Master Files menu will print a report which groups employees into workman’s compensation categories and details all required information for submission of workman’s compensation reports.

W-2 forms can also be printed or magnetic media created at yearend by using the menu item “Process Payroll W-2s” on the Applications/Master Files menu on the Year End menu.

Application Overview

Revenue Distribution

Revenues can be distributed to all owners (working, royalty, or override interests) with this software module. Up to 50 different lists (distribution levels) can be created for each property by using the menu item “REVENUE DISTRIBUTION LEVELS” menu item on the Applications/Master Files menu. Each distribution level can have an unlimited number of owners but the list must total 100%. One list might be created for distributing revenues on a property before payout while another list might be created for distributing revenues on the property after payout. Each owner on a distribution level can be treated differently depending on the information specified when the distribution level is created. Whether an owner is to pay any severance tax is specified for each owner on each distribution level. Likewise, whether an owner is to pay any marketing costs withheld by the purchaser is specified for each owner on each distribution level. A pay code is also specified for each owner indicating whether the owner is to be paid, placed in legal suspense, netted against unpaid JIB invoices on the same property, or netted against unpaid JIB invoice from any property.

Revenues will not be disbursed to an owner if the distribution level stipulates the revenues are to be placed in legal suspense. In this case, the owners revenues will be retained by the operator (held in legal suspense) until the operator takes the overt step to release the revenues for payment by running the menu item “RELEASE LEGAL SUSPENSE” on the Applications/Revenue menu. Revenues will also not be disbursed to an owner if the total amount of the check is less than the minimum. Each time a revenue check run is made, a minimum is established by stating a minimum applicable for all owners or by stating that the default minimum for each owner found in the ID file will be applicable.

The revenue checks are entered by using the menu item “ENTER CASH RECEIPTS” on the Applications/Accounts Receivable menu. When these cash receipts are posted, the detail from the revenue checks is sent to the Revenue Distribution module for processing. The first step in distributing the revenues is to select the revenues payments to be distributed and to have such payments divided amongst all owners on the specified distribution level. This is accomplished by using the menu item “DISTRIBUTE REVENUES” on the Applications/Revenue menu.

The new revenues selected for processing along with all minimum suspense and all legal suspense released for payment are then processed by running the menu item “PRINT DISBURSEMENT DETAILS” on the Applications/Revenue menu. This menu item determines if the minimum has been met, performs any netout against unpaid JIB’s and prints the check stub portion information on a separate piece of paper. It shows the owner, property, check number, and the 8/8ths and owner net amounts for each payment. Payments for all properties are included on the same check. If the disbursement details are correct, run the menu item “PRINT REVENUE CHECKS” on the Applications/Revenue menu. If the checks are correct, the process can be finalized by running the menu item “POST REVENUE CHECKS” on the Applications/Revenue menu. The payment history is maintained for the printing of 1099’s at yearend.

A Revenue Disbursement Detail can be reprinted after the checks have been posted by using the menu item “RECALL REVENUE CHECK DISBURSEMENTS” on the Applications/Revenue menu.

The process followed in "netting" JIB invoices from your revenues when you print the revenue disbursement details consists of four different procedures which are performed when netting the JIB's from the revenues.

· step 1..... You can specify in the ID file if the owner’s credit invoices are to be offset against the owners debit invoices. The choices are “NO, don't offset”; ‘YES Same Property” or “YES, Any Property”. Any credit & debit invoices that are offset will included on the revenue disbursement detail along with the invoices that were netted in steps 2, 3 and 4.

· step 2.... All revenues to be netted on a "property by property" basis are netted against the remaining debit JIB's.

· step 3.... All revenues to be netted against JIB's for "any property” are netted against the remaining debit JIB's.

· step 4......Two methods exist for causing credit invoices to be refunded to an owner and shown on the revenue disbursement details. The first method is to indicate in the ID file that credits are always to be refunded. This will cause all remaining credit invoices to be refunded by having them added to the revenue check. The second method for refunding credit invoices is when you run the revenue disbursement details, you are asked if you want to issue refunds to specific owners for credit invoices on the books. If you indicate you want to issue refunds for credit JIB's, you must provide a list of the owners to be issued refunds and all credit invoices for those owners will be included on the revenue disbursement details along with invoices netted in steps 1, 2 & 3 above.

Application Overview

Depletion

The Depletion module allows the user to establish the cost basis and the reserves for each individual property or for a group of properties and to then calculate both cost and percentage depletion for any specified period of time.

Each entity for the calculation of depletion is called the Depletion Field. A Depletion Field can be established for one single property or a Depletion Field can be established for a group of properties where one single depletion amount is to be calculated. The menu item “DEPLETION” on the Applications/Master Files menu allows the user to create the Depletion Field. Each Depletion field must be assigned a unique 8-digit number by the user. The purchase date is extremely critical because it is a controlling item in the depletion calculation.

The Depletion Field itself does not stipulate which properties are included. The menu item “PROPERTIES” on the Applications/Master Files menu allows the entry of a Depletion Field for each and every property. Therefore, if you created a Depletion Field number “ABC” and this field included three properties, each of the three properties must contain the value “ABC” in the Depletion Field portion of the property file.

The actual depletion calculations are performed by using the menu item “CALCULATE DEPLETION” on the Applications/Depletion menu. The revenue and expense history files are then searched for the specified period of time to determine the net and gross revenues for each property. The reserves are based on gross revenues available, not volumes. Therefore, the reserves are reduced by the gross revenues received whenever the depletion calculation results are posted. At this point, the newly calculated depletion has not been posted and is not yet reflected as depletion having been taken.

The depletion calculations are finalized by running the menu item “POST CALCULATED DEPLETION” on the Applications/Depletion menu. A history file of the posted depletion and associated adjustments to the cost basis and reserves is maintained for each Depletion Field.

The history file can be viewed and changed by running the menu item “DEPLETION HISTORY” on the Applications/Depletion menu. This menu item allows the user to directly enter adjustments to the cost basis or the reserves before making the next depletion calculations.

Getting Started

Company Setup

After the software has been installed, the first step that must be performed is to “setup” the data files for your companies. Each company must have its own set of data files identified with a unique 3 digit company number as a part of the actual file name.

New companies are “setup” by using the menu item “SETUP NEW COMPANY” from the Company menu. You will be prompted for the 3-digit company number to be assigned to this company as well as the company name. Since the 3-digit company number is a part of the actual file name, it can contain only alphabetic and numeric characters, no blanks, dashes, decimal points, commas, or any other special characters. The training company is installed as a part of the software is assigned a company number of “999”. You will assign all other company numbers and the only number which is reserved is” 999”.

As each software module is being setup, the actual data files are created on the hard disk and all data files will be empty unless you indicate that the ID file, Property file, or G/L Chart of Accounts files are to be duplicated from another company in which case you must specify the 3 digit company number of that company.

Once all software modules are setup, several options regarding configuration of each module will need to be entered. Run the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu to enter these options. These entries are retained within the software and can be viewed or changed in the future by again running the “CONFIGURATION MAINTENANCE” menu item on the Utilities menu.

The configuration questions for each of the software modules are presented below:

OVERALL COMPANY	EXPECTED RESPONSE
	This was setup at the time of creating the company. Changes can be made here if desired.
AFE CONFIGURATION	EXPECTED RESPONSE
	There are not any configuration options.
A/P CONFIGURATION	EXPECTED RESPONSE
Interface to G/L	No, don’t send transactions to G/L Detailed, send debits and credits from each invoice to G/L Summarized, send only total debits and total credits for the entire batch of transactions being posted to G/L
Interface to Bank Reconciliation	Yes, post paid invoices to Bank Reconciliation No, don’t post to Bank Reconciliation
Interface to Joint Interest Billing	Yes, send billable charges to JIB module No, don’t send anything to JIB module
Interface to AFE	Yes, send anything charged to an AFE to AFE module No, don’t send anything to AFE module
G/L Account for Active Invoices	Enter the G/L account for Account Payable Liability
G/L Account for Prepaid Invoices	Enter the G/L account for a cash account
G/L Account for Checks Written	Enter the G/L account for a cash account
G/L Account for Discounts Taken	Enter the G/L account for Discounts Taken
Type of Checks	Laser, standard laser checks Remit, no checks – print remittance advice
Are Check Numbers Preprinted on Checks	Yes or No
A/R CONFIGURATION	EXPECTED RESPONSE
Interface to G/L	No, don’t post to General Ledger Detailed, post debits/credits from each invoice or cash receipt to General Ledger Summarized, post total debits/credits from the entire batch being posted to General Ledger
Interface to Bank Reconciliation	No, don’t post anything to Bank Reconciliation Detailed, post each check as a deposit to Bank Reconciliation Summarized, post the total amount of the batch of cash receipts as one deposit to Bank Reconciliation Mixed, summarize to bank rec and detail to general ledger (still summarizing to the bank account G/L)
Address	Enter the address to appear at the top of A/R Statements
G/L Account for Accounts Receivable	Enter the G/L account to be used for Accounts Receivable when new invoices are entered
G/L Account for Bank Reconciliation	Enter the G/L account for a cash account
BANK RECONCILIATION CONFIGURATION	EXPECTED RESPONSE
Add a row for each bank account	For printing checks on blank check stock, set up your bank accounts here. Acct = OGBOOKS G/L account, Nextnum = the next check # to be used, Account = your actual bank account number, Routing = your bank routing number, Bank1, Bank2, Bank3 = the 3 lines of text on a check that contain bank specific data like name of bank, website, address, or a bank number that looks like 99-3289/1233 or similar
G/L CONFIGURATION	EXPECTED RESPONSE
Names of Accounting Periods	Enter the names of each of the 12 months
Interface to Joint Interest Billing	Yes or No
Interface to AFE	Yes or No
G/L Account for Current Year P&L	Enter the G/L account used for Current Year P&L
G/L Account for Retained Earnings	Enter the G/L account used for Retained Earnings
G/L Account for JIB Clearing	Enter the G/L account used for JIB Clearing
G/L Account for Intercompany Payables	Enter the G/L for Intercompany A/P
G/L Account for Intercompany Cash	Enter the G/L for Intercompany Cash
G/L Account for Intercompany LOE	Enter the G/L for Intercompany LOE
INVESTOR MANAGEMENT CONFIGURATION	EXPECTED RESPONSE
Do You Want to Keep Detailed History of Well Expenses	Yes or No
Post Expenses to G/L	Yes or No
Post Revenue to G/L	Yes or No
Credit Expenses to which G/L Account	Enter the G/L Liability Account for Expenses
Credit Revenues to which G/L Account	Enter the G/L Liability Account for Revenues Payable
JIB CONFIGURATION	EXPECTED RESPONSE
Interface to G/L	Yes or No
Interface to Accounts Receivable	Yes or No
Interface to Investor Management	Yes or No
Email JIB Settings	Username, Password, Server, and Port for emailing JIB and Revenue
G/L Account for JIB Clearing	Enter the G/L to be used for JIB Clearing
G/L Account for Accounts Receivable	Enter the G/L to be used for Accounts Receivable
G/L Account for Accounts Payable	Enter the G/L to be used for Advances Payable
G/L Account for Interest Income	Enter the G/L to be used for Interest Income
G/L Billable Account for Interest	Enter the G/L to be used for Billable Interest
LEASE RECORDS CONFIGURATION	EXPECTED RESPONSE
Interface to G/L	Yes or No
Interface to Bank Reconciliation	Yes or No
G/L Account for Lease Records Checks	Enter the G/L Account for Cash
Are Check # Preprinted on the Checks	Yes or No
PAYROLL CONFIGURATION	EXPECTED RESPONSE
Company Federal Tax ID	Enter the company federal tax ID
ID # for paying Federal Taxes	Enter the ID# of the entity to receive the payment of federal income taxes
Colorado Tax ID for state income tax	Enter the state tax id for Colorado
New Mexico Tax ID for state income tax	Enter the state tax id for New Mexico
Oklahoma Tax ID for state income	Enter the tax id for Oklahoma
Kansas Tax ID for state income tax	Enter the tax id for Kansas
Interface to G/L	Yes or No
Interface to Bank Reconciliation	Yes or No
Interface to Joint Interest Billing	Yes or No
G/L Account for social security payable	Enter the G/L Liability account for social security
G/L Account for medicare payable	Enter the G/L Liability account for medicare
G/L Account for federal income tax payable	Enter the G/L Liability account for FIT
G/L Account for state income tax payable	Enter the G/L Liability account for SIT
G/L Account for Payroll tax expense	Enter the G/L Expense account for payroll taxes
G/L Account for FUTA tax payable	Enter the G/L Liability account for FUTA
G/L Account for FUTA tax expense	Enter the G/L Expense account for FUTA
G/L Account for payroll checks	Enter the G/L Asset account for cash
Are Check # Preprinted on the Checks	Yes or No
G/L Account for billable wages	Enter the G/L Account for billable wages
REVENUE DISTRIBUTION CONFIGURATION	EXPECTED RESPONSE
Interface to G/L	Yes or No
Interface to Bank Reconciliation	Yes or No
Interface to Investor Management	Yes or No
Interface to Accounts Receivable	Yes or No
Type of Checks	Must choose small
Are Check # Preprinted on the Checks	Yes or No
G/L Account for minimum suspense	Enter the G/L account for minimum suspense
G/L Account for legal suspense	Enter the G/L account for legal suspense
G/L Account for severance tax payable	Enter the G/L account for severance tax payable
G/L Account for cash	Enter the G/L account for cash
G/L Account for revenues payable	Enter the G/L account for revenues payable
G/L Account for Accounts Receivable	Enter the G/L account for accounts receivable
G/L Account for State Tax payable	Enter the G/L account for state tax payable
G/L Account for State Tax expense	Enter the G/L account for state tax expense
Transfer netout amounts to cash accounts	Yes or No
Address to be shown at top of Disbursement Details	Enter the address you want shown at the top of the Revenue Disbursement Details
DEPLETION CONFIGURATION	EXPECTED RESPONSE
	There are not any configuration options

Getting Started

Creating the ID Master File

If you require the name & address of a person or company anywhere in the accounting system, that person or company must be established in one central master file called the ID file. This would include vendors, owners, purchasers, etc. Each company has its own ID master file.

When a person/company is setup in the ID master file, the person/company is assigned a six digit alphanumeric ID number. This ID number should be somewhat alphabetic since many reports are sorted in ID sequence. It is recommended that the ID number be 3 alphabetic characters followed by three numeric characters. An example would be to assign Bayside Computers Systems an ID number of BAY001 and if some other company/person was already assigned that number, assign Bayside Computer Systems an ID number of BAY002. The first 3 alphabetic characters should be the first 3 characters of a person’s last name or the first 3 characters of a company name.

Use the menu item “ID (NAMES & ADDRESSES)” on the Applications/Master Files menu to add, change or delete companies/persons to the ID master file. When running this program, one of the options is to ADD a new company/person. When this option is chosen, the user is prompted to enter the desired ID number for this new company/person. The input field allows the user to enter a maximum of 6 digits. The user can enter the full six digits or can enter only the first 3 digits (leaving the last 3 digits blank) and the software will assign the next numeric value to the last 3 digits. For instance, if the user entered only “BAY”, the software would make the ID number BAY004 if BAY001, BAY002, and BAY003 had already been used.

See the Help-Subject entitled INTER-COMPANY POSTINGS for discussions regarding the usage of specific ID numbers to accomplish the postings between companies.

Each person/company in the ID file can be classified as a vendor, an owner, and/or a purchaser. One ID could be classified as all three or any combination of the 3. Depending on the classifications, different information will be requested for the company/person.

When the company/owner is established in the ID file, they are assigned an ID number. Elsewhere in the software, prompts will request a vendor number, an owner number, a purchaser number. This is the same 6-digit number assigned to the company/owner in the ID file. It just has a different reference depending where it is being used.

Two very specific ID numbers are required and must be setup in the ID file. One special ID number is “999500” which must be used to identify your own company. When this specific ID number is encountered on a distribution level for a property, the software recognizes it as your interest and will treat the expenses and revenues in a special manner different from all other owners on the property. The second special ID number is “OUTSID” which must be used to identify outside owners. This ID number is used on distribution levels to indicate an amount for which we were not billed or not paid. This ID number is required on the distribution level to force a total of 100%. Whenever this ID number of OUTSID is encountered on a distribution level, it is used to “gross up” the expense or the revenue to 8/8ths.

Getting Started

Creating the Property Master File

Each entity that you want to record expenses and/or revenues must be established as a property in the Property Master File. Typically these entities would be “wells”, “prospects”, etc. but they could also be “ranch”, “workover rig”, etc.

Properties are maintained by using the menu item “PROPERTIES” on the Applications/Master Files menu. Each property must be assigned a property (maximum of 8 digits). A “property type” must be declared for each property and the property must be declared to be “active” or “inactive”.

Revenues and expenses are maintained at the property level however properties can be added together on reports. Properties can be grouped by field, operator, prospect or lease.

Getting Started

Creating Distribution Level Master Files

Up to 49 different lists of owners can be maintained for use in splitting expenses on a property. Likewise, up to 49 different lists of owners can be maintained for use in splitting revenues on a property. These lists are called Distribution Levels. Each list is assigned a 2-digit number by the user with numbers 01-49 available for expense Distribution Levels and numbers 50-99 available for revenue Distribution Levels. Each Distribution Level can contain an unlimited number of owners but the total decimal interest for all owners on a Distribution Level must equal exactly 100%.

Expense Distribution Levels differ slightly from revenue Distribution Levels therefore different menu items are used for maintaining these Distribution Levels. Expense Distribution Levels are maintained by using the menu item “JIB DISTRIBUTION LEVELS” on the Applications/Master Files menu whereas the revenue Distribution Levels are maintained by using the men item “REVENUE DISTRIBUTION LEVELS” on the Applications/Master Files menu.

If all expense are split the same on a property, then only one expense Distribution Level need be created. The ID number of the owner, the owners decimal interest, and an indication (Y, N) if this owner is the one owner to be forced to receive the penny rounding, if any. One owner will have a “YES” in the “forced” column while all other owners will have a “NO” in this column.

The revenue Distribution Levels contain the same information as described above for the expense Distribution Levels plus four additional fields. Each owner on a Revenue Distribution Level also requires the interest type (WI= working, RI= royalty, ORR= override), whether the owner pays sev taxes(Y,N), whether the owner pays purchaser withheld marketing costs (Y,N), and a pay code indicating how to handle their revenues (pay, hold in legal suspense, net against unpaid invoices on the same property, net against unpaid invoices on any property, cutback to G/L for use only with owner 999500.

The revenue world normally has more occasion to require multiple Distribution Levels than the expense world. An example would be a well where you are being paid 100% of the oil revenues but are only be paid 80% of the gas revenues (royalty owners are being paid by the purchaser). This would require 2 different Distribution Levels. One Distribution Level would include all owners, working and royalty, to be used for splitting oil revenues. The other Distribution Level would include only the working interests plus the owner # OUTSID for a 20% interest for use in splitting the gas revenues.

Getting Started

Creating G/L Chart of Accounts

The general ledger account number is a 10 digit number made up of a2 digit department #, 4digit account number, and a 4 digit sub-account number. When entering a general ledger account number, the entire 10 digits are always required. One suggestion regarding the assignment of account numbers is to not leave the first 2 digits blank; instead, make them “00” so that you can use the 10-key pad for data entry without having to bounce back and forth between the space bar and the 10-key.

There are no restrictions regarding the assignment of account numbers. There is no limit to the number of accounts. A separate Chart of Accounts must be created for each year (even though they are probably the same). Most people use a department number of “00” and a four digit account number followed by 4 spaces for the sub account; i.e. 00-1000-. Run the menu item “G/L ACCOUNTS” on the Application/Master Files menu to add, change, delete or list the general ledger accounts. Each account must be classified Asset, Liability, Capital, Income, Expense or Billable type. All billable accounts must require a property to be entered and likewise none of the other types of accounts are allowed to have a property entered. Each billable account must also specify a “cutback” account that is the account your portion of an expense is to be charged to. Budgets can be entered for each account and reports compared to budget can then be printed.

Getting Started

Creating Employee Master File

Each employee must be setup in the employee master file by running the menu item “EMPLOYEES” on the Application/Master Files menu. A four-digit number must be assigned to each employee. Although 26 deductions can be defined by running the menu item “PAYROLL DEDUCTIONS/ADJUSTMENTS” on the Application/Master Files menu, each employee can have only 7 deductions specified. The deductions for each employee can differ but they must exist in the master list of deductions.

Multiple garnishments can be established for each employee and a history of all garnishment payments will be maintained. Tax tables already exist for federal taxes as well as for the states of Oklahoma, New Mexico, Colorado, and Kansas. Each tax table has an assigned 2-digit table number that must be entered into the employee master file. Run the menu item “PAYROLL TAX TABLES” on the Application/Master Files menu to determine the 2-digit table number to be used for your employees.

Getting Started

Creating Worker's Comp Codes Master File

Each employee in the Employee Master File must have a Workman’s Comp code specified. In order to specify the code it must first be established in the Workman’s Comp Code Master File by running the menu item “WORKMAN’S COMP CODES” on the Application/Master Files menu.

There are 26 codes available (A thru Z). You can assign any Workman’s Comp category to any Workman’s Comp code. For instance, if you had only two categories (“clerical” and “truck drivers “), you could assign the name “CLERICAL” to Workman’s Comp Code “A” and assign the name “TRUCK DRIVERS” to Workman’s Comp Code “B”. This is accomplished by running the menu item “WORKMAN’S COMP CODES” on the Application/Master Files menu and entering the names for code “A” and code “B”.

Getting Started

Creating Payroll Deductions/Adjustments

Payroll deductions such as 401k withholding, health insurance, etc. which can be deducted from an employees paycheck as well as adjustments such as bonus pay, travel reimbursement, etc. which can be added to an employees paycheck must be defined in the P/R Deductions/Adjustments master file. There are 26 codes available (A thru Z). These codes must be defined by running the menu item “P/R DEDUCTIONS/ADJUSTMENTS” on the Application/Master Files menu. Any code can be used to define a deduction or to define an adjustment. Defining the code includes entering a description for the code, indicating if the code is subject to Federal Income tax and/or Social Security tax, the G/L account to be charged for the code, and finally whether the code is a deduction or an adjustment.

Getting Started

Creating JIB Class Master File

The expenses being billed on the JIB’s are grouped into major categories such as Lease Operating Expenses, Lease & Well equipment, Leasehold Costs, etc. Running the menu item “JIB CLASSES” on the Application/Master Files menu allows the user to establish names for any of the 26 available codes (A thru Z).

Once these JIB Class codes have been established, each G/L Billable account should indicate which JIB class all charges to that account should be grouped under on the Joint Interest Billing.

Getting Started

Creating Product Code Master File

When entering revenue checks received from your purchasers, a 1-digit product code must be entered to identify the name of the product (oil vs. gas….). There are 9 product codes available which can be defined by running the menu item “PRODUCT CODES” on the Application/Master Files menu.

The product codes available to be defined are numbered 1 thru 9. By default product code 1 is “OIL” and product code 2 is “GAS”. The remaining 7 product codes can be defined by entering the product name (casing head gas, etc.) and indicating if the unit of measure for that product code is MCF, BBLS, or GAL.

Getting Started

Load Existing A/P Invoices

When you run this menu item, you can choose between processing A/P invoices, A/R invoices, or Revenue Suspense. Since this menu item does not update G/L, it should not be run again once the initial A/P invoices have been entered.

Getting Started

Load Existing A/R Invoices

Getting Started

Load Existing Minimum Suspense

Getting Started

Load Existing Legal Suspense

Getting Started

Load Current G/L Balances

The easiest means of entering the G/L balances is to enter a G/L journal entry containing the balance for each account and then post this journal entry to a previous month in your books. To enter the G/L journal entry run the menu item “ENTER/CHANGE G/L JOURNAL ENTRIES” on the Application/General Ledger menu. Then post the journal entry by running the menu item “POST G/L JOURNAL ENTRIES” on the Application/General Ledger menu.

How Do I...

AFE

HOW DO I SEE WHAT AFE NUMBERS EXIST

If you are prompted to enter an AFE number in any software module, one option is to use the “lookup” feature and a popup window will be produced which shows all AFE numbers.

Another means of seeing existing AFE numbers is to run the menu item “AFE MAINTENANCE” on the Applications/AFE menu. One of the choices on the command bar is ” List” and a listing can be printed or displayed on the screen showing all current AFE numbers.

HOW DO I SETUP A NEW AFE

The following data is required for each AFE:

DATA FIELD	FIELD DESCRIPTION
Property number	Each AFE must be related to a property. Enter the property number or use the “lookup” feature to specify the property number.
AFE Status	Active, inactive, or completed
Required Property	If the AFE is associated with one specific property, enter the property number. This field can be left blank.
Work To Begin On	Enter the date the work is to begin. This field can be left blank.
Estimated # of Days	Enter the estimated number of days to complete this job. This field can be left blank.
TD	Total depth of the wellbore. This field can be left blank.
PBTD	Pull back to depth. This field can be left blank.
Present Zone	Enter the zone presently being produced. This field can be left blank.
Present Perf	Enter the depth of the present perforations. This field can be left blank.
Future Zone	Enter the new zone to be produced after the AFE is completed. This field can be left blank.
Future Perf	Enter the depth of the perforations after the AFE is completed. This field can be left blank.
G/L Accounts	Enter a list of G/L accounts you have budgeted for this AFE including the estimated amount for each account.

HOW DO I SEE TOTAL AMOUNTS SPENT ON AN AFE

HOW DO I SEE DETAILED ACTUAL CHARGES ON AN AFE

HOW DO I ADD SEVERAL AFE’S TOGETHER

The menu item “CONSOLIDATION LIST MAINTENANCE” on the Applications/AFE menu provides the means of creating, changing, or deleting Consolidation Lists. Each Consolidation List is identified by a unique, user supplied 10 digit Consolidation List number composed of any combination of alphanumeric, numeric, or special characters. This number can be less than 10 characters and is case sensitive (upper and lower case are different). Multiple Consolidation Lists can be created. The Consolidation list consists of a description of the list (its purpose) and an unlimited number of AFE numbers. When entering the AFE numbers, you can either enter the AFE number or use the “lookup” feature to specify the AFE number.

HOW DO I ENTER DAILY FIELD REPORTS

Daily field reports can be entered by using the menu item “DAILY FIELD REPORT” on the Applications/AFE menu. A Field Report must be entered for a specific AFE. If you want to enter daily pumper reports on your wells, setup a dummy AFE for each well with a Status of “inactive” and then you can enter Daily Field Reports for your active AFE’s (actual workovers, etc.) as well as for your operating wells. Each Daily Field Report is identified by the AFE number it is associated with and the work date. In addition to the AFE number and the work date, the following two fields must be entered:

DATA FIELD	FIELD DESCRIPTION
Today’s $	The estimated costs spent on this day. This field can be left blank.
Description	A freeform, unlimited in length field for entering the detailed report for the day.

HOW DO I DELETE AN AFE

Two methods are available for deleting AFE’s. The first method is to use the menu item ”AFE FILE MAINTENANCE” on the Application/AFE menu. Choose the Find option on the command line to find and display the AFE to be deleted and then choose the Delete option on the command line to actually delete the AFE. This will delete not only the AFE but also all Daily Field Reports for that AFE.

The second method of deleting AFE’s is to use the menu item “REMOVE COMPLETED AFE’s” on the Application/AFE menu. This menu item will remove all AFE’s and their associated Daily Field Reports whose status in the AFE master file is set to “completed” indicating the AFE is completed. To change the status, run the menu item ”AFE FILE MAINTENANCE” on the Application/AFE menu. Choose the Find option on the command bar to find and display the desired AFE and then choose the edit the data fields for this AFE.

HOW DO I CHARGE EXPENSES TO AN AFE

MENU ITEM	DESCRIPTION
New A/P Invoices	As a new invoice is entered into A/P, one of the data fields is entitled “AFE”. If you want to charge an amount to an AFE, enter the AFE number in this field or use the “lookup” feature to specify the AFE number. Since each AFE is associated with a property, you must also have entered the property number in the prior field entitled “Property”
Recurring A/P Invoices	When entering a recurring A/P invoice, the process of charging an AFE is the same as that described above.
Remove A/P Invoices	This menu item is used to delete an existing A/P invoice but not yet paid. Since an AFE could have been charged when the invoice was entered, you might need to credit the AFE if you remove the invoice. . If you want to charge an amount to an AFE, enter the AFE number in the AFE field or use the “lookup” feature to specify the AFE number. Since each AFE is associated with a property, you must also have entered the property number in the prior field entitled “Property”

HOW DO I CHARGE IN-HOUSE COSTS TO AN AFE

The menu item “ENTER/CHANGE JOURNAL ENTRIES” on the Application/General Ledger menu is used to charge expenses not associated with A/P (in-house) to an AFE. As a new Journal Entry is entered, one of the data fields is a field entitled “AFE”. If you want to charge an amount to an AFE, enter the AFE number in this field or use the “lookup” feature to specify the AFE number. Since each AFE is associated with a property, you must also have entered the property number in the prior field entitled “Property”.

HOW DO I ADVANCE BILL OWNERS FOR AN AFE

DATA FIELD	DESCRIPTION
Property	Each advance billing is for a specific property. Enter the property number or use the “lookup” feature to specify the property number.
DL	The advance billing can be billed to all owners on a DL or it can be billed entirely to one owner. To bill the advance to all owners on a DL, leave the next field (owner) blank and enter the Distribution Level or use the “lookup” feature to specify the DL in this field.
Owner	To charge the entire Advance Billing to one specific owner, leave the prior field (DL) blank and enter the owner number or use the “lookup” feature to specify the owner number in this field.
JIB Class	Enter the JIB CLASS (A-Z) you want this advance billing to appear under when the invoices are printed.
Description	Enter the description you want to appear on the invoices for this Advance Billing.
Advance Amount	Enter the total amount to be advance billed.

The entering of this Advance Billing Request results in the addition of this request to the items awaiting processing in the JIB module. The actual creation of the individual invoices per this Advance Billing Request is accomplished by performing a JIB run and selecting Advance Billings to be processed (see the JIB sections for detailed processing instructions).

HOW DO I RECORD CHARGES AGAINST ADVANCES

MENU ITEM	DESCRIPTION
New A/P Invoices	As a new invoice is entered into A/P, one of the data fields is a field entitled “Property”. If you want to charge an amount to a property, enter the property number in this field or use the “lookup” feature to specify the property number. Another field entitled “DL” must also be entered or use the “lookup” feature to specify the Distribution Level to be used to split the charge amongst owners. The distribution level will determine which owners are to be billed vs. charging to their advance payments.
Recurring A/P Invoices	When entering a recurring A/P invoice, the process of charging an amount against owner’s advances is the same as that described above.
Remove A/P Invoices	This menu item is used to delete an existing A/P invoice but not yet paid. Since an amount could have been charged against owner’s advances when the invoice was entered, you might need to credit the amount charged against owner’s advances if you remove the invoice. As you enter an invoice to be removed from A/P, one of the data fields is a field entitled “Property”. If you want to charge an amount to a property, enter the property number in this field or use the “lookup” feature to specify the property number. Another field entitled “DL” must also be entered or use the “lookup” feature to specify the Distribution Level to be used to split the charge amongst owners.
Enter/Change G/L Journal Entries	As a new journal entry is entered into G/L, one of the data fields is afield entitled “Property”. If you want to charge an amount to a property, enter the property number in this field or use the “lookup” feature to specify the property number. Another field entitled “DL” must also be entered or use the “lookup” feature to specify the Distribution Level to be used to split the charge amongst owners

How Do I...

Accounts Payable

HOW DO I SETUP A NEW VENDOR

Vendors are setup in the ID file. The menu item “ID (NAMES & ADDRESSES)” on the Application/Master Files menu is used to add, change, or delete vendors. Each vendor is identified by a unique, 6 digit user assigned number. It is highly recommended that the vendor numbers be somewhat alphabetic since most reports will print in vendor number sequence. To that end, we recommend the first 3 digits of the vendor number be the first 3 digits of a person’s last name or, if the vendor is a company, be the first three digits of the company name. Examples would be if the vendor is Bayside Computer Systems, Inc. the first three digits of the vendor number should be “BAY; whereas, if the vendor was Bob Mosley, the first three digits of the vendor number should be “MOS”. The last 3 digits of the vendor number should be a sequential number. The first vendor with a number starting with “BAY” would become“BAY001” and the second vendor to be setup starting with “BAY would become “BAY002”, etc.

The following data fields are required in the ID master file for a vendor:

FIELD NAME	DESCRIPTION
Name	Enter the last, first and middle name as you want it to appear throughout the system.
Lookup	Enter up to 5 characters (case sensitive) that you normally think of when you think of this vendor. This field is used by the “lookup” feature to find vendor numbers.
Address	Two lines are available to enter the mailing address
City	Enter the city where the vendor is located
State	Enter the 2 digit postal service abbreviation for the state.
Zip	Enter the zip code.
Tax ID	Enter the social security number or corporate tax id if this vendor is to receive 1099’s. If not, leave this field blank.
Phones	Four phone numbers can be entered for the vendor (office, home, mobile, and fax). These fields can be left blank.
E-Mail	The E-Mail address can be entered for this vendor. This E-Mail will be used when sending JIB’s through email. Can be blank.
Send 1099	Does this vendor get a 1099 (yes or no)
Rent/Nonemployee/Other	Are payments shown on 1099’s to be shown as Rent, Non-employee compensation, or other.
Terms	Enter the number of days to be added to the invoice date to become the due date for invoices from this vendor.
Priority Vendor	Allows for indication that this vendor is priority and their A/P invoices will be selected if you “select priority vendors”
G/L	Enter a G/L account or use the “lookup” feature to specify the account to be used as the default debit account on all invoices from this vendor.

HOW DO I ENTER AN UNPAID INVOICE

The menu item “NEW A/P INVOICES” on the Application/Accounts Payable menu is used to enter new invoices. When entered, the invoices are in a pending state (they have not yet been officially posted into the computer so they don’t show up in A/P yet). While the invoices are in this pending state, this same menu item can be run to change, list, or delete these pending invoices. Once these pending invoices are posted (menu item “POST NEW A/P INVOICES” on the Application/Accounts Payable menu), they will appear in the A/P reports, charges will be sent to JIB, AFE and to G/L.

The following data fields are required when entering an unpaid A/P invoice:

DATA FIELD	DESCRIPTION
Vendor Number	Enter the vendor number or use the “lookup” feature to specify the vendor number.
Invoice #	Enter the invoice number.
Invoice Status	Choose either prepaid (already paid) or active (needs to be paid)
Include in Batch #	Invoices are placed into batches when they are entered to facilitate printing/posting. Once the invoices are posted, there is no further batching. Enter the desired batch number.
Gross Invoice Amount	Enter the total amount of the invoice.
1099 Amount	Enter the amount of this invoice to be reported on 1099’s. This field will appear only if the vendor record in the ID file indicates this vendor is to receive 1099’s.
Invoice Description	Enter an overall description for the charges on this invoice. This description will appear on the check stub when the invoice is paid. A different description will appear on JIB’s if this invoice is billable.
Invoice Date	Enter the invoice date.
Due Date	Enter the due date.
Discount Amount	If a discount amount is available, enter the amount here and leave the next field (discount %) blank. This field can be left blank.
Discount Percent	If a discount percent is available, enter the percent here and leave the prior field (discount amount) blank. This field can be left blank.
G/L Account To Be Credited	Enter the G/L account or use the “lookup” feature to specify the G/L account to be credited. Active (unpaid) invoices normally credit an A/P Liability account. The default credit account is specified in the CONFIGURATION file on the Utilities menu.

The following data fields are required when entering the distribution of an unpaid A/P invoice:

DATA FIELD	DESCRIPTION
Description	Enter the description to appear on the JIB if this amount is billable. If this field is left blank, the name of the G/L debit account will be substituted for the description on the JIB.
Amount	Enter the amount.
Property	If this amount is not to be billed to a property, leave this field blank; otherwise enter the property number or use the “lookup” feature to specify the property number to be charged.
DL	If the property field was left blank, leave this field blank also; otherwise enter the Distribution Level or use the “lookup” feature to specify the DL to be used when the amount is billed.
AFE	If the property field was left blank, leave this field blank also; otherwise if you want to charge this amount to an AFE, enter the AFE number or use the “lookup” feature to specify the AFE number. This field can be left blank if the amount is not chargeable to an AFE.
G/L ACCT	Enter the G/L account or use the “lookup” feature to specify the G/L account to be debited. If the property field was entered, this field must contain a Billable account. If the property field was left blank, this field cannot contain a Billable account.

HOW DO I ENTER AN INVOICE THAT HAS BEEN PAID

The menu item “NEW A/P INVOICES” on the Application/Accounts Payable menu is used to enter invoices already paid (prepaid). When entered, the invoices are in a pending state (they have not yet been officially posted into the computer so they don’t show up yet). While the invoices are in this pending state, this same menu item can be run to change, list, or delete these pending invoices. Once these pending invoices are posted (menu item “POST NEW A/P INVOICES” on the Application/Accounts Payable menu), they will appear on the A/P Vendor History Report, charges will be sent to JIB, AFE and to G/L.

The data fields to be entered for a prepaid invoice are the same as those to be entered for an active (unpaid) invoice shown above with the following exceptions:

DATA FIELD	DESCRIPTION
Invoice Status	Enter (Prepaid) to indicate this invoice is prepaid rather than active.
Invoice Date	Not required.
Due Date	Not required.
Check Date	Enter the date on the check which paid this invoice.
Check Number	Enter the check number of the check which paid this invoice.
G/L Account To Be Credited	Enter the G/L account or use the “lookup” feature to specify the G/L account to be credited. Prepaid invoices normally credit a Cash account. The default credit account is specified in the CONFIGURATION file on the Utilities menu.

With these few exceptions in the above table, prepaid invoices are entered just like unpaid invoices and can be charged to properties, AFE’s , etc. When posted, the active invoices are added to the open, unpaid A/P invoice file while the prepaid invoices are added to the A/P Vendor History file containing all paid invoices.

HOW DO I SEE WHAT INVOICES ARE STILL UNPAID

Two reports are available which show the unpaid invoices. The menu item “REVIEW UNPAID A/P INVOICES” on the Application/Accounts Payable menu allows the user to obtain a report showing the total amount owed to each vendor, or showing individual invoices by vendor, by property, or by G/L debit account number.

The other report showing unpaid A/P invoices is produced by running the menu item “CASH REQUIREMENTS REPORT” on the Application/Accounts Payable menu. This report allows the user to age the invoices into 4 groupings depending on when the invoices are due. The user must enter 3 dates which are used to group the invoices. This is normally the report run to determine which invoices you want to select for payment.

HOW DO I SELECT INVOICES TO BE PAID

The command bar then presents the user with the following unique choices:

COMMAND BAR CHOICE	EXPLANATION
Priority	Allows the user to have all invoices selected from vendors which are declared to be priority vendors in the ID file.
Offsetting	Allows the user to specify an invoice and if another invoice exists for the opposite amount and the same vendor and the same G/L account, the 2 “offsetting” invoices will be removed from the unpaid A/P invoice file.
All	Allows the user to enter a date and all invoices for all vendors that are due before this date will become selected and all invoices for all vendors that are due after this date will become not selected
Partial	Allows the user to specify a partial amount to be paid on the currently highlighted invoice.

HOW DO I WRITE A/P CHECKS

When printing the checks, the user will be prompted for the beginning check number and the check date. The checks will be printed and a Preliminary Check Register will be printed but nothing is finalized yet. If the checks did not print correctly or you paid the wrong invoices or you failed to pay some invoices, you have two options available. One option is to destroy the checks you just printed and reselect the invoices to pay if necessary and rerun the menu item that prints the checks. The second option is to go ahead and finalize the check run by running the menu item “POST A/P CHECKS” on the Applications/Accounts Payable menu and then run the menu item “VOID A/P CHECKS” (see section below) on the Application/Accounts Payable menu to void the incorrect checks. When a check is voided, the invoices will be removed from the Vendor History file and placed back into the unpaid invoice file for future payment.

HOW DO I SETUP RECURRING INVOICES

The data required for a recurring A/P invoice is identical for that shown previously for entering an active invoice with the following exceptions:

DATA FIELD	DESCRIPTION
Invoice Status	Not required
Invoice Date	Not required
Due Date	Not required
Discount Amount	Not required
Discount Percent	Not required

When the recurring invoices are posted, a due date is specified for all invoices being posted.

HOW DO I INQUIRE ABOUT AN INVOICE

If an invoice has been entered into the computer, it would reside in one of three locations. It would either be pending (it has been entered but not yet posted into the system), unpaid (waiting to be paid), or paid. The resultant display will indicate such status of any invoice which matches the user specified criteria.

If you know the vendor # and the invoice amount but don’t know the invoice #, enter just the vendor number or use the “lookup” feature to specify the vendor number and the amount. Any invoice of that amount from that vendor would be displayed. Another example would be if you only knew the invoice amount, enter just the amount and any invoice from any vendor for that amount would be displayed.

HOW DO I REVIEW PAYMENTS TO VENDORS

Every invoice paid via a computer check or is entered as a prepaid invoice is automatically retained in the Vendor History File. The menu item “REVIEW VENDOR HISTORY” on the Application/Accounts Payable menu allows the user to obtain a list of invoices paid to specified vendors. A range of vendors and/or a range of check dates can be specified to restrict the list of invoices shown. The resultant report will show each invoice paid, the check number and the check date.

HOW DO I REMOVE AN INVOICE BEFORE IT IS PAID

Once an active invoice is entered and posted into the system, it will remain an unpaid invoice until it is either paid via a computer check or until it is removed. The menu item “REMOVE A/P INVOICES” on the Application/Accounts Payable menu allows the user to specify an unpaid invoice that is to be removed and to enter the charges to properties, AFE’s and to G/L associated with the removal of that invoice. The invoice is not actually removed until the menu item “POST A/P INVOICES BEING REMOVED” on the Application/Accounts Payable menu is executed.

When entering the invoice to be removed, the user will be prompted for the vendor number. Enter the vendor number or use the “lookup” feature to specify the vendor number. A display will then be produced showing all unpaid invoices from that vendor and the user can select the invoice to be removed.

Once the invoice to be removed is selected, the user must enter a batch number for this invoice. Invoices to be removed are placed into batches for ease in printing/posting but once posted there is no further batching. If the invoice is being removed because it has been paid by manual check, the user must enter the check number, check date, and G/L Cash account to be credited. If the invoice was not paid by a manual check, these three fields must be left blank.

Distributions must then be entered identical to that required when the invoice was originally entered. These distributions allow the user to enter the description, amount, property, DL, AFE, and G/L account as described in the section on entering an active invoice.

HOW DO I VOID AN A/P CHECK

An A/P check can be voided by executing the menu item “VOID A/P CHECKS” on the Application/Accounts Payable menu. When a check is voided, all the invoices paid on that check are removed from the Vendor History of paid invoices and are added back into the unpaid invoices file and transactions are sent to G/L reflecting this action.

Voiding an A/P check requires a list of the checks to be voided must be created by specifying the vendor number and then a list of the checks written to that vendor is displayed and the check to be voided can be selected.

Once the list of checks to be voided is built, click on the “POST” button at the top of the screen to initiate the actual voiding of the checks. If you fail to click on the “POST” button and instead click on the “MENU” button at the top of the screen, the entire voiding process is voided (no checks are voided) and you will return to the master menu.

HOW DO I REVIEW A/P 1099 DATA

COMMAND BAR CHOICE	EXPLANATION
Prior	Show invoices for the previous vendor.
Next	Show invoices for the next vendor.
Find	Allows the user to enter a vendor number or use the “lookup” feature to specify the desired vendor number whose invoices are to be displayed on the screen.
List	Allows the user to obtain report showing amounts to be shown on 1099’s and also verifies the vendor has a tax-id number in the ID file.

How Do I...

1099

HOW DO I PRINT ACTUAL 1099 FORMS

All 1099 forms (vendors, property owners, or lease holders) are printed or written to magnetic media for submission to the IRS by using the menu item “1099, CREATE 1099 FORMS/FILES” on the YEAR-END menu. Select the option to “Print 1099 Forms” and then supply the following information:

DATA FIELD EXPLANATION

DATA FIELD	EXPLANATION
Company Name & Address	Enter the actual company name & address as they are to appear on the 1099
Company Tax-ID	Enter the company’s tax-id number
Process A/P 1099’s	Include 1099s for A/P vendors (Yes or No).
Process Owners 1099’s	Include 1099s for owners (Yes or No).
Process L/R Payee’s 1099’s	Include 1099s for L/R payees (Yes or No).

HOW DO I CREATE 1099 FILE FOR SUBMISSION TO IRS

All 1099 files (vendors, property owners, or lease holders) are written to a file for file for later submission to the IRS by using the menu item “1099, CREATE 1099 FORMS/FILES” on the YEAR-END menu. Select the option to “Create File for Electronic Submission” and then supply the following information:

DATA FIELD	EXPLANATION
Company Name & Address	Enter the actual company name & address as they are to appear on the 1099
Company Tax-ID	Enter the company’s tax-id number
Process A/P 1099’s	Include 1099s for A/P vendors (Yes or No).
Process Owners 1099’s	Include 1099s for owners (Yes or No).
Process L/R Payee’s 1099’s	Include 1099s for L/R payees (Yes or No).

HOW DO I PRINT 1099 LETTERS

Letters can be sent to the vendors/owners instead of printing actual 1099 forms. All 1099 letters (vendors, property owners, or lease holders) are printed by using the menu item “1099, CREATE 1099 FORMS/FILES” on the YEAR-END menu. Select the option to “Print 1099 Letters” and then supply the following information:

DATA FIELD	EXPLANATION
Company Name & Address	Enter the actual company name & address as they are to appear on the 1099
Company Tax-ID	Enter the company’s tax-id number
Process A/P 1099’s	Include 1099s for A/P vendors (Yes or No).
Process Owners 1099’s	Include 1099s for owners (Yes or No).
Process L/R Payee’s 1099’s	Include 1099s for L/R payees (Yes or No).

How Do I...

Accounts Receivable

HOW DO I SEE WHAT A/R INVOICES ARE OPEN

Three different menu items are available on the Application/A/R menu which allow the user to see what A/R invoices are still outstanding. The menu item “PRINT OPEN RECEIVABLES” on the Application/A/R menu produces a report listing all A/R invoices for an owner. The menu item “PRINT AGED RECEIVABLES” on the Application/A/R menu produces two types of reports; one showing just total amounts owed by each customer or a report showing each invoice owed by a customer. The user enters 3 dates and each invoice is aged into the appropriate group depending on the invoice date. The menu item “PRINT BALANCE FORWARD STATEMENTS” on the Application/A/R menu produces a report showing a beginning balance as of a specified date plus all new invoices or payments with a running balance due (Balance Forward Report). When choosing the Balance Forward Report the user must specify the date for the beginning balance and whether the report is to be produced if the ending balance is zero.

HOW DO I ENTER A MANUALLY PRODUCED INVOICE

Invoices get into the unpaid A/R invoice file from three basic processes. The majority of the invoices are those produced by performing the JIB process. Manually produced Invoices can be entered into the computer. Thirdly, miscellaneous charges to be billed to a customer can be entered into the computer, invoices printed (not JIB invoice, rather Miscellaneous invoices), and these miscellaneous invoices posted. Manually produced invoices can be entered by using the menu item “ENTER MANUAL A/R INVOICES” on the Application/A/R menu. When entering a manually produced invoice, the following data fields are required:

DATA FIELD DESCRIPTION

DATA FIELD	EXPLANATION
Customer Number	Enter the ID number or use the “lookup” feature to specify the ID number of the person receiving the invoice
Invoice Number	Enter the invoice number.
Batch Number	Manual invoices are entered into batches to facilitate printing/posting. Enter the batch number for this invoice.
Property Number	If this invoice is associated with a property, enter the property # or use the “lookup” feature to specify the property #. This field can be left blank.
Invoice Date	Enter the invoice date.
Amount	Enter the amount. Debit is 100.00, credit is -100.00
G/L Account	Enter the G/L accounts or use the “lookup” feature to specify the G/L account # to be debited or credited.

Multiple lines of distribution (amount and G/L account) can be entered, but debits must equal credits. A typical entry would debit your Accounts Receivable account and credit an income account.

The manually produced invoices do not appear anywhere in the system until the menu item “POST MANUAL INVOICES” on the Application/A/R menu is executed.

HOW DO I PRODUCE A MISCELLANEOUS INVOICE

If you desire, you can enter the information to be invoiced, have the computer print the actual invoice, and post those invoices into the computer. The end result is the same as typing the invoice by hand and entering the manual invoice as described above with the exception of having the computer actually print the invoice.

To enter the charges to appear on a miscellaneous invoice, run the menu item “ENTER MISC INVOICES” on the Application/A/R menu. When entering miscellaneous charges to be invoiced, the following data fields are required.

DATA FIELD	EXPLANATION
Customer Number	Enter the ID number or use the “lookup” feature to specify the ID number of the person receiving the invoice
Recurring (Y,N)	Is this a recurring invoice (Yes or No).
Regarding	This field allows the user to enter a reference for this invoice to distinguish it from another invoice for the same customer. This field does not appear on the actual invoice. This field can be left blank.
Property Number	If this invoice is associated with a property, enter the property # or use the “lookup” feature to specify the property #. This field can be left blank.
Batch Number	Misc. invoices are entered into batches to facilitate printing/posting. Enter the batch number for this invoice.
Explanation	Up to 5 lines of explanation can be entered to further explain why this invoice was sent. This field can be left blank
Description of Charge	This field is a freeform, unlimited in size area where you can enter as much description as desired.
Amount	Enter the amount to be invoiced.
Skip	Skip 1, 2, or 3 lines after this line is printed. This field can be left blank
G/L Account	Enter the G/L account or use the “lookup” feature to specify the G/L account # to be credited (normally an income acct or sales tax acct).

As many lines of distribution (description, amount, skip & G/L account) can be entered as desired for each invoice. This menu item can be used to add, change, or delete charges to be printed on the miscellaneous invoice. The actual printing of the miscellaneous invoices is accomplished by using the menu item “PRINT MISCELLANEOUS INVOICES” on the Application/A/R menu. The invoices can be printed multiple times. The invoice numbers for these invoices will automatically be provided by the software but you must enter the invoice date. If the invoices are not as you desire, you can change the charges, add new charges, etc. and then print the invoices again.

The miscellaneous invoices are not finalized until the menu item “POST MISCELLANEOUS INVOICES” on the Application/A/R menu is performed. This menu item will post the last batch of invoices that were printed into the system and erase the charges entered for those invoices unless the invoice was a “recurring” invoice in which case the charges will remain for invoicing again.

HOW DO I RECORD PAYMENT OF AN INVOICE

All monies received by your company should be entered as a cash receipt by using the menu item “ENTER CASH RECEIPTS” on the Application/A/R menu. Cash receipts are entered into batches to facilitate printing/posting. One batch of cash receipts are posted at a time and all cash receipts in the batch being posted will be posted to the same G/L cash account and will be posted to the same G/L accounting period. So, if some cash receipts are deposited in one bank account while others are deposited into a different bank account, they must be entered into two different batches. Likewise, if some cash receipts are to be posted to June and others are to be posted to July, they must be entered into two different batches.

Three different types of cash receipts can be processed but this discussion involves only the entering of a cash receipt where a customer is paying our invoice. When entering cash receipts for payment of our invoices, the following data fields are required:

DATA FIELD	DESCRIPTION
Customer Number	Enter the ID number or use the “lookup” feature to specify the ID number of the person making the payment
Check Number	Enter the number of the check you received.
Batch Number	Cash receipts are entered into batches to facilitate printing/posting. Enter the batch number for this cash receipt.
Payment Type	Select “JIB Payment”
Check Date	Enter the date of the check.
Date Received	Enter the date you received the check.
Check Amount	Enter the total amount of the check.
Deposit Reference	Enter any reference desired (date, #, etc) referring to the deposit of this check. This field can be left blank.
Comment	Enter any description you desire. It will simply print on in-house reports. This field can be left blank.

Once the above data has been entered, a table will appear on the screen and you must identify which invoices are being paid in this table and you can’t exit until the full amount of the check has been applied. The table consists of two columns, one entitled “amount” and the second entitled “inv #”. When you choose to apply payment to another invoice (Add), a window will appear with all of this customers unpaid debit invoices shown and you can pick the invoice you want. That invoice number will be inserted in your table with the full amount owed on the invoice in the amount column. If that is not the amount you want to apply towards the invoice, you can change the amount at this time. This process of building your table continues until the full amount of the check has been applied. If you have any amount remaining and don’t know what invoice is to apply it to, click on “issue credit”. When posted, this will cause a new invoice to be added to A/R for this customer. This new invoice is assigned a unique invoice number just like any other invoice but the invoice amount is negative.

Lines can be added, changed, or deleted in your table until you have the correct application of this cash receipt. These cash receipts are not finalized until you execute the menu item “POST CASH RECEIPTS” on the Application/A/R menu. Once posted, any invoices paid off will no longer appear as unpaid invoices and any invoices receiving partial payment will reflect the adjusted amount still owed.

HOW DO I RECORD RECEIPT OF A REVENUE CHECK

Three different types of cash receipts can be processed but this discussion involves only the entering of a revenue check received from your purchaser or from another operator in the case of a non-operated property. Run the menu item “ENTER CASH RECEIPTS” ” on the Application/A/R menu to enter cash receipts for a revenue check. The following data fields are required.

DATA FIELD	DESCRIPTION
Customer Number	Enter the ID number or use the “lookup” feature to specify the ID number of the person making the payment
Check Number	Enter the number of the check you received.
Batch Number	Cash receipts are entered into batches to facilitate printing/posting. Enter the batch number for this cash receipt.
Payment Type	Select “Revenue Check”.
Check Date	Enter the date of the check.
Date Received	Enter the date you received the check.
Check Amount	Enter the total amount of the check.
Deposit Reference	Enter any reference desired (date, #, etc) referring to the deposit of this check. This field can be left blank.
Comment	Enter any description you desire. It will simply print on in-house reports. This field can be left blank.
Okla Royalty Tax W/H	Enter any amount (positive) withheld from the check for Oklahoma Royalty Taxes
Netted Out	Enter any amount (positive) withheld from the check for payment of bills you owed the person sending this check.

Once the above data has been entered, another screen will appear where the user must enter the detailed information regarding the properties, months of production, volumes, product type, etc. of each payment on the check. When these cash receipts are posted, this revenue detail is automatically sent to the Revenue Distribution module for processing. When entering the revenue detail associated with the cash receipt of a revenue check, the following data fields are required:

DATA FIELD	DESCRIPTION
Property Number	Enter the property number or use the “lookup” feature to specify the property number.
DL	Enter the Distribution Level or use the “lookup” feature to specify the DL to be used to split the revenues between the owners.
All To One Specific Owner	Either enter the DL (above) and leave this entire section blank or enter data into all 5 fields in this section and leave the DL blank
MTH	Enter the month of production (the month the oil/gas was produced)
YEAR	Enter the year of production (the year the oil/gas was produced)
P	Enter the product code or use the “lookup” feature to specify the product code. Product codes can be setup by using the Product Codes menu item on the Applications/Master Files menu
Volume	Gross or net volume will be requested based on the setting in the ID file for the purchaser making this payment. Enter the appropriate volume that is requested.
Sev Tax	Gross or net sev tax will be requested based on the setting in the ID file for the purchaser making this payment. Enter the appropriate sev tax that is requested..
L	Are you liable for the payment of this sev tax (Y) or has the purchaser already paid these taxes (N). Enter Y or N.
Mktg	Gross or net marketing costs will be requested based on the setting in the ID file for the purchaser making this payment. Enter the appropriate marketing costs that is requested..
Net Revenue	Enter the amount of revenue to be dispersed to the owners on the DL.

Lines can be added, changed, or deleted until you have the correct application of this revenue check. These cash receipts are not finalized until you execute the menu item “POST CASH RECEIPTS” on the Application/A/R menu. Once posted, the revenue detail will automatically be passed to the Revenue Distribution module for processing.

HOW DO I RECORD MISCELLANEOUS CASH RECEIPTS

Three different types of cash receipts can be processed but this discussion involves only the entering of a check received in payment of something other than an invoice or revenues. An example would be a check for interest from a bank. Run the menu item “ENTER CASH RECEIPTS” ” on the Application/A/R menu to enter cash receipts for a miscellaneous check. Entering cash receipts for this type of payment requires the following data fields:

DATA FIELD	DESCRIPTION
Customer Number	Enter the ID number or use the “lookup” feature to specify the ID number of the person making the payment
Check Number	Enter the number of the check you received.
Batch Number	Cash receipts are entered into batches to facilitate printing/posting. Enter the batch number for this cash receipt.
Payment Type	Select “Other”
Check Date	Enter the date of the check.
Date Received	Enter the date you received the check.
Check Amount	Enter the total amount of the check.
Deposit Reference	Enter any reference desired (date, #, etc) referring to the deposit of this check. This field can be left blank.
Comment	Enter any description you desire. It will simply print on in-house reports. This field can be left blank.

Once the above data has been entered, another screen will appear where the user must enter the amount and the G/L account to be credited or use the “lookup” feature to specify the G/L account to be credited. Multiple entries of amount and G/L account can be entered and this process can’t be terminated unless the total amount of the check has been credited to some G/L account.

HOW DO I REVIEW CASH RECEIPTS HISTORY

Once posted, all cash receipts are retained in a history file and the menu item “PRINT JIB PAYMENT HISTORY” on the Application/A/R menu or the menu item “PRINT REVENUE PAYMENT HISTORY” on the Application/A/R menu allows the user to obtain a list of all the cash receipts for a specific accounting period, a list of all cash receipts by property, or a list of all cash receipts by customer/purchaser.

The report of all cash receipts by customer/purchaser can be restricted to certain or all customers/purchasers and can be restricted to a range of dates. In a similar manner, the report of all cash receipts by property can be restricted to certain or all properties and can also be restricted to a range of dates.

HOW DO I REMOVE AN INVOICE BEFORE IT IS PAID

When entering the invoice to be removed, you must first specify the customer number of the customer whose invoice is to be removed. A list will then be displayed on the screen showing all unpaid invoices for the specified customer and you pick the one you want to remove.

You must then build a table showing all debits and credits associated with the removal of this invoice. One entry is automatically placed in the table that you cannot change. This entry is a credit the G/L account the invoice was originally charged to. The following table shows the data fields required when entering the debits and credits for the removal of the invoice:

DATA FIELD	DESCRIPTION
Description	Enter a description that accompanies the transaction to G/L. This field can be left blank.
Amount	Enter the amount. Debits are 100.00, credits are -100.00
G/L Account	Enter the G/L account to be charged or use the “lookup” feature to specify the account. Normally, this account will be an income account.

HOW DO I APPLY CREDITS AGAINST UNPAID INVOICES

Invoices for negative amounts can appear for a customer under two occasions. As cash receipts are entered, one option is to give the customer a “credit memo”. This results in another invoice being added to receivables for that customer for a negative amount. Also, JIB invoices can have a negative amount on occasion.

These A/R invoices for a negative amount can be offset against other A/R invoices with a positive amount if desired by using the menu item ”APPLY CREDIT MEMOS” on the Application/A/R menu. The owner is specified and a list of credit memos (negative invoices) is displayed from which the desired credit memo can be selected. The user then builds a table showing the amount and the invoice number to offset this credit memo. When adding another invoice to the list, a list of positive invoices appears from which the desired invoice can be selected to offset the credit memo. The selected invoice will be placed in the table with the total amount owed on the invoice as the amount to be offset by this credit memo. This amount can be changed at this time if desired. Again, this process of adding, changing, or deleting invoices to be offset by the selected credit memo continues until there are no more unpaid invoices, the credit memo is used up, or the user indicates there are no further entries to the table by choosing the SAVE option from the command bar.

HOW DO I CHARGE INTEREST ON PAST-DUE INVOICES

The only means of charging interest on past-due invoices is through the JIB process. When an owner is setup in the ID file, a monthly interest rate can be specified for use in charging interest. This interest rate will apply to all properties, so you can either charge interest on past-due invoices for all properties or you don’t charge interest on any past-due invoices for an owner. During the JIB process, the ID file will be examined to see if an interest rate has been specified for an owner. If the interest rate is zero for an owner, interest will never be charged on past-due invoices. But, if the interest rate is not zero, the unpaid A/R invoice file will be examined for past-due invoices and a JIB will be produced to the owner under a dummy property number of “INTEREST” for interest (charged at the interest rate in the ID file) on ALL past-due invoices regardless of property..

As a part of the JIB process, the user is prompted “Charge Interest on Invoices Dated Prior To” and must respond with a date. Any unpaid invoice dated before this specified date is considered past due. Once the JIB’s are posted, these invoices for interest are added to the unpaid A/R invoice file along with all other JIB invoices produced during the JIB process.

How Do I...

Bank Reconciliation

HOW DO I RECORD CHECKS/DEPOSITS HAVE CLEARED THE BANK

When you receive your monthly bank statement, use the menu item “POST CLEARED CKS/DEPOSITS / ADJUSTMENTS” on the Application/B/R menu to mark the checks and deposits that have cleared the bank. When running this program, you must first enter the G/L cash account or use the “lookup” feature to specify the cash account and you must enter the month and year of the bank statement. Checkbooks are maintained for each cash account.

You then choose to process “clear checks” or “clear deposits” and a list of checks/deposits will show on the screen. Click a line to clear the item, you can click it again to unclear it.

One of the data fields in the checkbook file is entitled “cleared” and this field is either blank indicating this check\deposit has not cleared the bank or it will contain the month and year of the bank statement on which it cleared. When you click on a line to indicate a check/deposit cleared the bank, the month and year of this bank statement is automatically placed in this “cleared” field.

Another option available on the command bar is “post adjustments”. This option allows the user to enter adjustments found on the bank statement such as service charges, wire transfers, etc.

HOW DO I SEE IF BANK BALANCE

MATCHES THE CHECKBOOK BALANCE

When you run this program, you must first enter the G/L account or use the “lookup” feature to specify the G/L cash account for the checkbook and also enter the month and year of the bank statement being reconciled. You will also need to enter the ending balance per your bank statement. Once entered, the checkbook file is examined to see what checks and deposits have cleared the bank and whether or not your ending balance matches with the bank.

These amounts shown above reflect only those check and deposits that have cleared the bank. The report then continues by listing all deposits that cleared the bank on this statement and then lists all checks that cleared the bank on this statement. It will then list all outstanding items.

The “ADD or CHANGE CHECKS/DEPOSITS” menu item on the Application/Bank Reconciliation menu provides an option on the command bar to “List” and this option allows the user to obtain cleared checks, uncleared checks, cleared deposits, uncleared deposits. The list can be restricted to just those checks/deposits dated within a specified range of dates, cleared on bank statements within a specified range of dates, etc. The list can also be restricted to just certain types of checks (A/P, Payroll, Revenue, Lease Records).

HOW DO I PRINT A LISTING OF THE CHECKBOOK

HOW DO I ENTER CHECKBOOK ADJUSTMENTS

A window will then appear in which all adjustments already entered for this bank statement will appear and you can add or delete adjustments to this list. Adding an adjustment requires the following data fields.

DATA FIELD	DESCRIPTION
Adjustment Date	Enter the date of the adjustment
Description	Enter a description of the adjustment
Amount	Enter the adjustment amount. A negative amount indicates the bank balance was reduced. A positive amount indicates the bank balance was increased.
G/L Account	Enter the G/L account to be charged or use the “lookup” feature to specify the account. Normally, this account will be an expense account.

These adjustments will be included on your checkbook and transactions will be sent to G/L reflecting these adjustments.

How Do I...

General Ledger

HOW DO I REVISE MY CHART OF ACCOUNTS

The G/L account number is 10 digits in length, broken down into three portions (2 digit department, 4 digit account, and a 4 digit sub-account). Your assignment of account numbers is at your discretion. If you are not using the department portion of the number, it is suggested that you use 00 for the department portion of the number rather than leaving these first 2 characters of the number blank.

When you add a new account, the following data fields are required:

DATA FIELD	DESCRIPTION
Name	Enter the name of the account
Account Type	asset liability capital income expense billable
Beginning Balance	Enter the beginning balance if this is an Asset, Liability, or Capital account. If not, leave this field blank.
Property Required	Check if this is a billable account, otherwise don’t check
JIB Type	If this is not a billable account, leave this field blank. If a billable account, enter the JIB CLASS (A-Z) you want expenses charged to this G/L account to appear under on the JIB.
Prop Type	If this is not a billable account, leave this field blank. If a billable account leave this field blank and charges using this account can be made to any type of property. To restrict this account to only charging to certain types of properties, select the property type in this field and you will only be able to charge this account to properties with that property type which is found in the Property Master file.
Cut-Back To	If this account is not a billable account, leave this field blank. If a billable account, enter the G/L account or use the “lookup” feature to specify the G/L account your portion (owner 999500) of an expense will be charged to.
Budgeted This Year	Budgeted amounts can be entered for each of twelve months if desired. These budgets can be used to compare financial reports against budgets. These fields can be left blank.

The List option on the command bar will produce a listing of your Chart of Accounts.

HOW DO I ENTER G/L BEGINNING

BALANCES TO GET STARTED

G/L beginning balances can be initially entered two ways. The first way is to use the menu item “G/L ACCOUNTS” on the Application/Master Files menu and enter the beginning balance directly into that field when adding or changing an account. Remember a debit is 100.00 and a credit is -100.00.

The preferred method is to use the menu item “ENTER/CHANGE G/L JOURNAL ENTRIES” on the Application/General Ledger menu to enter a journal entry consisting of beginning balances for each balance sheet account, post the journal entry using the menu item “POST G/L JOURNAL ENTRIES” on the Application/ General Ledger menu to some past accounting period, post the pending G/L transactions for that accounting period to the books by using the menu item “PRINT/POST PENDING TRANSACTIONS” on the Application/General Ledger menu, and then close out the year by using the menu item “GENERAL LEDGER YEAR-END CLOSEOUT” on the YEAR-END menu. This method, as opposed to the first method, ensures that debits = credits.

HOW DO I DEFINE DEFAULT ACCOUNTS

These default accounts specified in the this file are used automatically by the other software modules rather than forcing the user to enter these accounts each time a particular program is executed.

HOW DO I CREATE BUDGETS

AND PRINT ACTUALS vs BUDGETS

Budgeted amounts can be entered for any G/L account for any month by using the menu item “BUDGET MAINTENANCE” on the Application/General Ledger menu. A report showing the budgeted amounts that have been entered can be obtained by using the list option on the command line.

Balance Sheets and P&L Statements can be printed without comparisons, with comparisons to last year, or with comparisons to budget. The user controls the selection of comparisons at the time the reports are printed. Use the menu item “PRINT FINANCIAL REPORTS” on the Application/General Ledger menu to print the Balance Sheets and/ P&L Statements. This menu item produces reports that have previously been defined by creating a “schedule” using the menu item “SCHEDULE MAINTENANCE” on the Application/General Ledger menu.

HOW DO I ENTER JOURNAL ENTRIES

Journal entries can cause debits and credits to go to G/L, can cause charges to go to JIB for billing on properties, and can cause charges to go to open AFE’s. When entering a journal entry, the journal entry can be declared a “recurring” journal entry in which case it will remain as a pending journal entry after it is posted. When entering a journal entry, you can also indicate this journal entry is to be a reversal of another journal entry and the new journal entry will be created automatically.

Journal entries can be added, changed, deleted, or listed by using the menu item

“ENTER/CHANGE G/L JOURNAL ENTRIES” on the Applications/General Ledger menu. The journal entries are held in a pending file until they are posted by using the menu item “POST G/L JOURNAL ENTRIES” on the Application/General Ledger menu. When the journal entries are posted, they go into the Pending Transactions file along with all other G/L transaction from the other software modules waiting to be put on the books. When entering the journal entries, the following data fields are required:

DATA FIELD	DESCRIPTION
Reversal JE	Is this journal entry to reverse an already posted journal entry. Select “Enter J/E to Reverse Existing J/E” to reverse a J/E or select “Create New J/E” to keyin a new J/E.
Batch Number	Journal entries are entered into batches to facilitate printing & posting. Enter the batch #.
Recurring	Select “yes” or “no”.
Explanation	Up to 5 lines are available to enter a detailed explanation regarding the journal entry. These lines can be left blank
Description	Enter the description to appear on the JIB if this amount is billable. If this field is left blank, the name of the G/L account will be substituted for the description on the JIB.
Amount	Enter the amount..
Property	If this amount is not to be billed to a property, leave this field blank; otherwise enter the property number or use the “lookup” feature to specify the property number to be charged.
USE DL	If the property field was left blank, leave this field blank also; otherwise enter the Distribution Level or use the “lookup” feature to specify the DL to be used when the amount is billed.
ALL TO ONE OWNER	If a property was entered, either enter the “USE DL” field and leave this field blank or enter an owner number in this field and leave the “USE DL” field blank.
AFE	If the property field was left blank, leave this field blank also; otherwise if you want to charge this amount to an AFE, enter the AFE number or use the “lookup” feature to specify the AFE number. This field can be left blank if the amount is not chargeable to an AFE.
G/L ACCT	Enter the G/L account or use the “lookup” feature to specify the G/L account. If the property field was entered, this field must contain a Billable account. If the property field was left blank, this field can’t contain a Billable account.
ID #	This field can be left blank or you can enter an ID number simply for referral purposes on the G/L reports.
REFERENCE	This field can be left blank or you can enter reference number simply for referral purposes on the G/L reports.

HOW DO I POST TRANSACTIONS TO THE BOOKS

As postings are performed in other software modules, G/L transactions are created and sent to the G/L module to be put on the books. Certain validation procedures need to be performed before these pending transactions are actually placed on the books, Use the menu item “PRINT/POST PENDING TRANSACTIONS” on the Applications/G/L menu to validate the pending transactions waiting to be put on the books. This program can be run daily, once a week, once a month, whenever and each time it is run the user specifies an accounting period (year and month) and all pending transactions for the specified period will be validated and posted to the books if so directed by the user. These pending transactions will not appear on any G/L reports until they have been posted to the books.

If, during the validation process, errors are discovered (invalid accounts, debits not equal credits), the errors will be detailed on a report and the posting of the pending transactions will be aborted. Errors can be resolved by using the menu item “REVIEW JOURNAL ENTRIES” on the Application/General Ledger menu. This program allows the user to add, change, or delete pending transactions. When adding or editing pending G/L transactions via the “REVIEW JOURNAL ENTRIES” menu item on the Application/General Ledger menu, the following data fields are required:

DATA FIELD	DESCRIPTION
Journal	Enter an indication of what software module created the transaction (AP, AR, JIB, etc)
Reference	Enter an indication of what menu item created the transaction (Entry, Checks, Cashrec, etc)
Journal Entry #	Each batch of transactions sent to G/L has a common number assigned as the Journal entry #. Enter the Journal Entry number for all transactions in the same batch as this transaction.
G/L Account	Enter the G/L account number or use the “lookup” feature to specify the account.
Description	Enter the description for this transaction
Transaction Date	Enter the date the transaction was created.
Amount	Enter the amount as a positive number

After all necessary corrections have been made, rerun the menu item “PRINT/POST PENDING TRANSACTIONS” on the Application/General Ledger menu to validate the pending transactions and post them to the books.

HOW DO I LOCK ACCOUNTING PERIODS

You can place a lock on any accounting period, past or future, and if a period is locked, transactions can’t be posted to the locked period. Use the menu item “LOCK G/L ACCOUNTING PERIODS” on the Administration menu to lock or unlock an accounting period.

When running this program, a screen display will be produced showing all accounting periods with the status of each period.

HOW DO I FORMAT FINANCIAL STATEMENTS

Balance Sheets and Profit/Loss Statements are produced by having earlier produced a “schedule” which defines the format of the report. Each schedule is given a number by the user when it is created and you can have as many different schedules as desired. Actually, a schedule is not restricted to defining a Balance Sheet or a Profit/Loss Statement, a schedule can be created to show any combination of accounts in any sequence.

Schedules can be created two different ways. The menu item “SCHEDULE MAINTENANCE” on the Application/General Ledger menu allows for the automatic creation of a schedule for a Balance Sheet or a schedule for a Profit/Loss Statement based on your existing Chart of Accounts. All you need to enter is the numbers for the two resultant schedules. This is a quick, easy way to get schedules created without knowing anything about schedules.

The second means of creating a schedule is to use the menu item “SCHEDULE

MAINTENANCE” on the Application/General Ledger menu and create a new schedule from scratch, line by line. Regardless of the means by which the schedules are created, they can be modified or deleted.

The first line of a schedule defines the report format whereas all other lines on a schedule define what is to be calculated or printed. When using the “SCHEDULE MAINTENANCE” menu item to add a new schedule, an existing schedule can be duplicated if desired. The following data fields are required on the first line of a schedule:

DATA FIELD	DESCRIPTION
Schedule Name	Enter your own internal description for the schedule. This field does not appear on the resultant report.
Schedule Type	current month only, current month and YTD,YTD only, Ending balances, 12 month spreadsheet
Schedule Title	Enter the actual Title you want to appear on the resultant report.
Does Report Have %	Does the resultant report need columns for percentages? Select “yes” or “no”.

All lines of a schedule past line 1 require the following data fields:

DATA FIELD	DESCRIPTION
Company	If you specify an account in the next field, you must also specify which company in this field by entering the 3-digit company number for the company whose account is specified in the next field.
FROM G/L	If you want to use an account for calculations or for printing, enter the G/L account or use the “lookup” feature to specify the account. This field can be left blank.
TO G/L	This filed can be left blank or you can enter another G/L account and all accounts in the range of “FROM G/L thru TO G/L” will be shown
Description	Enter a description to be printed on this line along with any amounts specified to print. This field can be left blank. If you are printing a G/L account, the description will print if entered. If the description is left blank the name of the G/L account will print.
Accumulator x	Five accumulators (adding machines) are available to add accounts together, store subtotals, etc. If no action is to be taken regarding an accumulator, leave this field blank. The valid codes to be entered into this field are: SZ = set accumulator to zero AA = add account to accumulator SA = subtract account from accumulator ZA = zero the accumulator, then add account to accumulator ZS = zero the accumulator, then subtract account from the accumulator Ax = add accumulator x to this accumulator Sx = subtract accumulator x from this accumulator.
Print	Enter a code in this field to specify what prints. The valid codes for this field are: PA print the account PR print the reverse of the account (if the account is a credit, print as a debit, etc) Px print the amount in accumulator x P- print a line of single dashes in each column P= print a line of double dashes in each column
Skip	Extra lines to skip after this line has printed. This field can be left blank. The valid entries for this field are: 1, skip 1 extra lines 2, skip 2 extra lines 3, skip 3 extra lines N, skip to a new page
DIV	This field can be left blank. A value in this field causes percentages to be calculated and printed on this line. The percentage is calculated by dividing the amount being printed by the amount in the accumulator specified by this field. If you wanted to divide an account by an amount previously stored in accumulator 3, you would enter ( 3 ) in this field.

HOW DO I PRINT FINANCIAL STATEMENTS

There are three types of reports available from the G/L module. They are a Trial Balance, a Detailed Ledger, and reports produced via schedules (Balance Sheets, P&L Statements, etc). The Trial Balance will list each G/L account with net change for a specified accounting period and the ending balance as of the specified accounting period. The Trail Balance is printed by using the menu item “PRINT TRIAL BALANCE” on the Application/General Ledger menu. The Detailed Ledger lists each detailed transaction for a specified range of G/L accounts. The Detailed Ledger is printed by using the menu item “PRINT DETAILED LEDGER” on the Application/General Ledger menu. To print reports using schedules, use the menu item “PRINT FINANCIAL REPORTS” on the Application/General Ledger menu and specify the schedule to be used for the desired report..

Any of these reports can be run at any time for any accounting period for any year.

HOW DO I CLOSE OUT THE YEAR

As you recall, when G/L transactions are generated by the other software modules they are sent to the G/L module and become “Pending Transactions”. They are not yet on the books and certain processing must be performed in the G/L module to put these Pending Transactions on the books.

Therefore, once you have finished posting all pending transactions to the books for the current year you must decide if you want to “closeout” the year at this time or postpone the closing of the books. When you run the menu item “GENERAL LEDGER, YEAR-END CLOSEOUT” on the YEAR-END menu, ending balances for the current year are rolled forward to the next year and a chart of accounts is created for the next year.

Should you decide to postpone closing out the year, you can continue to run all software modules and generate transactions to G/L for as long as you desire.

How Do I...

Investor Management

HOW DO I CREATE A LOS DEFINITION

To print a Lease Operating Statement, you must have previously created a definition of the report and this definition is called a LOS Definition. A LOS Definition is essentially identical to a G/L schedule. To add, change, delete, or list a LOS Definition, use the menu item “LOS DEFINITION MAINTENANCE” on the Application/Investor Management menu.

The first line of a LOS Definition defines the report format whereas all other lines define what is to be calculated or printed. When using the “LOS DEFINITION MAINTENANCE” program to add a new definition, an existing definition can be duplicated if desired. The following data fields are required on the first line of a definition:

DATA FIELD	DESCRIPTION
Definition Name	Enter your own internal description for the definition. This field does not appear on the resultant report.
Definition Title	Enter the actual Title you want to appear on the resultant report.

All lines of a definition past line 1 require the following data fields:

DATA FIELD	DESCRIPTION
G/L Account	Either enter a G/L account here and leave the “revenue fields” blank or enter all 3 of the “revenue fields” and leave this field blank. Expenses are obtained by specifying a billable account. If you want to use an account for calculations or for printing, enter the G/L account or use the “lookup” feature to specify the account. This field can be left blank.
Revenue Code	Revenue & production are obtained by specifying special codes as follows: MCF = mcf BBL = bbls SEV = sev taxes MKT = marketing costs NET = net Revenues PER = price per bbl LIF = lifting costs If a G/L account is specified in the prior field, this field must be left blank.
PC	If the prior field (Revenue Code) is blank, this field should be left blank also. If a revenue code was entered, enter the product code or use the “lookup” feature to specify the revenue code.
MONTH OF	If the Revenue Code is blank, this field should be left blank also. If a revenue code was entered, enter “PROD” if you want month of production or enter “DIST” if you want month of distribution.
GNOW	What interest do you want shown? G = 8/8ths N = everyone we were paid for O = our interest, owner 999500 W = total working interest
DESCRIPTION	Enter a description to be printed on this line along with any amounts specified to print. This field can be left blank. If you are printing a G/L account, the description will print if entered. If the description is left blank the name of the G/L account will print.
ACCUMULATOR x	Five accumulators (adding machines) are available to add accounts together, store subtotals, etc. If no action is to be taken regarding an accumulator, leave this field blank. The valid codes to be entered into this field are: SZ = set accumulator to zero AA = add account to accumulator SA = subtract account from accumulator ZA = zero the accumulator, then add account to accumulator ZS = zero the accumulator, then subtract account from accumulator Ax = add accumulator x to this accumulator Sx = subtract accumulator x from this accumulator.
PRINT	Enter a code in this field to specify what prints. The valid codes for this field are: PA = print the account PR = print the reverse of the account (if the account is a credit, print as a debit, etc) Px = print the amount in accumulator x P- = print a line of single dashes in each column P= = print a line of double dashes in each column
SKIP	Extra lines to skip after this line has printed. This field can be left blank. The valid entries for this field are: 1 = skip 1 extra lines 2 = skip 2 extra lines 3 = skip 3 extra lines N = skip to a new page

The training company has a LOS Definition called “DEMO” which you should list and review to fully understand how a LOS Definition is to be created.

HOW DO I ENTER PRIOR PROPERTY HISTORY

All Investor Management reports are produced from data contained in two history files, one containing revenues and production and the other containing expense history. In the case of expenses, the history is retained by property, by owner, by G/L billable account. The revenues & production are maintained by property, by owner, by product code, by interest type.

The normal monthly JIB and revenue distribution runs will automatically update these history files with that months data. However, if you want to enter previous balances into these history files, use the menu item “ENTER PROPERTY REVENUES” on the Application/Investor Management menu or the menu item “ENTER PROPERTY EXPENSES” on the Application/Investor Management menu. Each of these programs allow the user to enter data which will be added to the history files when posted. However, before posting either the expenses or the revenues you must ensure that no transactions are sent to the G/L module. To inhibit the sending of transactions to G/L when the revenues and/or expenses are posted, use the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu and under the Investor Management section is the control for interfacing to G/L. Select “no”.

To enter revenue & production history for a property, use the menu item “ENTER PROPERTY REVENUES” on the Application/Investor Management menu. Since history is maintained for each owner, the revenues entered must be for some specific owner. If you are just interested in entering prior history for your own interest, enter the revenues for owner 999500. If you want 8/8 history only, enter the 8/8 revenues under any valid owner number. When entering revenue history using the menu item “ENTER / CHANGE REVENUES”, the following data fields are required:

DATA FIELD	DESCRIPTION
Check Was From	Enter 999500 in this field.
Check #	Enter “PAST”
Okla Royalty Tax W/H	Enter 0.00
Check Date	Enter today’s date.

You must now create a table of revenue. The following data fields are required in the table:

DATA FIELD	DESCRIPTION
PROPERTY	Enter the property number or use the “lookup” feature to specify the property number.
DECIMAL	If you are entering your interest, enter your decimal interest. If you are entering 8/8, enter 1.00000000
MTH	Enter “01”
YEAR	Enter “1970”
P	Enter the product code or use the “lookup” feature to specify the product code.
INT	Enter the interest type: WI = working RI = royalty ORRI = override
NET VOLUME	If you are entering your interest, enter your net mcf/bbl. If you are entering 8/8, enter the 8/8 mcf / bbl
NET SEV TAX	If you are entering your interest, enter your net sev tax. If you are entering 8/8, enter the 8/8 sev tax
L	Are you liable for sev tax?? Enter “N”
NET MKTG	If you are entering your interest, enter your net marketing costs. If you are entering 8/8, enter the 8/8 marketing costs
NET	If you are entering your interest, enter your net revenues. If you are entering 8/8, enter the 8/8 revenues

Post the revenues by using the menu item “POST REVENUES” on the Application/Investor Management menu. When running this program, you will be prompted for the month and year for posting and the ID # of the owner. Enter “999500” for the Owner ID.

When entering expense history using the menu item “ENTER PROPERTY EXPENSES” on the Application/Investor Management menu, the following data fields are required:

DATA FIELD	DESCRIPTION
Invoice Was From	Enter “999500” in this field.
Invoice Number	Enter “PAST”
Invoice Date	Enter today’s date.

You must now create a table of expense entries. The following data fields are required in the table:

DATA FIELD	DESCRIPTION
PROPERTY	Enter the property number or use the “lookup” feature to specify the property number.
AMOUNT	Enter your amount
G/L ACCOUNT	Enter the G/L billable account or use the “lookup” feature to specify the G/L billable account. This must be a Billable account.

Post the revenues by using the menu item “POST EXPENSES” on the Application/Investor Management menu. When running this program, you will be prompted for the month and year for posting and the ID # of the owner. Enter “999500” for the Owner ID.

HOW DO I GET PROPERTY HISTORY FOR

NON-OPERATED PROPERTIES

Your normal monthly processing of JIB’s and Revenue Distribution will update your history files automatically. The normal processing of JIB’s and Revenue Distribution can include both operated as well as non-operated properties. A non-operated property can be setup like any other property and revenue and expense Distribution Levels can be established for the non-operated property. These DL’s for the non-operated property should include only two owners, 999500 (your company) and OUTSID (dummy owner for grossing up to 8/8ths). For instance, if you had a 10% working interest and an 8 percent net revenue interest the Distribution Levels should be setup as follows:

EXPENSE DL

OWNER	DECIMAL
999500	.10000000
OUTSID	.90000000

REVENUE DL

OWNER	DECIMAL
999500	.08000000
OUTSID	.92000000

Invoices from the outside operator could be entered along with all other invoices and the expenses could be charged to the non-operated property. Likewise, revenue checks received from outside operators could be entered along with all other revenue checks. The history of expense and revenues for non-operated properties would then be automatically updated along with operated properties when the JIB’s and the revenues are posted.

HOW DO I MONITOR PAYOUT STATUS

In order to track payout status you must first define the payout situation by using the menu item “PAYOUT STATUS REPORT” on the Application/Investor Management menu. Whenever an owner goes non-consent on a workover you might want to track the status of that well to see whenever payout has been reached per the stipulations in the Operating Agreement regarding non-consent interests. Or, you might want to track your net revenues on a property to see when you have reached payout based on your purchase cost of the property. Each of these payout situations must be defined and once defined, reports can be printed monthly showing the status of each payout situation.

The payout definitions are entered by using the menu item “PAYOUT STATUS REPORT” on the Application/Investor Management menu that will require the following data fields:

DATA FIELD	DESCRIPTION
Payout Definition #	Enter any combination of characters, numerics, or special characters. Each number must be unique.
Property #	Enter the property number or use the “lookup” feature to specify the property number.
Interest	Enter the interest type for the type of interest you want to measure. Enter “G” to measure 8/8 revenue, enter “N” to measure the total revenues you were paid, enter “W” to measure total working interest, or enter “O” to measure one specific owner’s net revenues.
Owner ID	If the prior field (Interest) is O, enter the ID number or use the “lookup” feature to specify the ID number of the owner you want to use to measure payout. If the Interest field is not O, leave this field blank.
Start Date	Enter the date to begin accumulating net revenues for the payout calculations.
Amount To Recover	Enter the total amount of net revenues required to achieve payout.
Payout Description	Two lines of description can be entered to describe the details of this payout definition. This field can be left blank.
Action Upon Payout	Two lines of description can be entered to explain what action is to be taken once payout is achieved. This field can be left blank.

HOW DO I MONITOR OWNER’S ADVANCE PAYMENT STATUS

All data regarding an owner’s advance is automatically accumulated when you do the Advance Billing, when the cash receipt for payment of the advance is posted, and when the JIB processing of Charges Against Advances is posted. Use the menu item “ADVANCE STATUS REPORT” on the Application/Investor Management menu to print reports which show the status of an owner. This report will show all advance billings to the owner, all payments by the owner, all charges against the advance, and where the owner stands with you on a cash basis.

NOTHING AUTOMATICALLY HAPPENS WHEN THE ADVANCE IS SPENT!! This report should be run each month after the JIB’s are finished to monitor the status. If you begin to exceed the amount of the advance, the decision of what to do is yours alone, the software will not automatically do anything. Your options include issuing an additional advance billing and continuing to charge the expenses against advances, continuing to overrun by charging the expenses against the advance and not issuing an additional advance billing, or don’t charge any more invoices against advances and instead bill out the new charges.

HOW DO I SEE WHICH PROPERTIES ARE PROFITABLE

The easiest method of determining which properties are the most profitable is to run the menu item “PRINT O/G OPERATIONS REPORT” on the Application/Investor Management menu. This report allows the user to sort the properties into property number or into profitability order with the most profitable properties listed first. This report will show the production and revenues for one specific month and the year-to-date revenues for either the calendar year or your fiscal year.

HOW DO I REVIEW PRODUCTION & OPERATING EXPENSES

Several different reports show property production, revenues and/or expenses. The one report intended to shown both production, revenue and expenses is the Lease Operating Statement which is produced by running the menu item “PRINT LEASE OPERATING STATEMENTS” on the Application/Investor Management menu. The format of this report is controlled by the LOS Definition created by the user (see section on Create LOS Definition). However, the report will always show six months or twelve months, YTD, and ITD across the page and the LOS Definition controls what prints down the page. This report can show each individual category of expense (billable account) on the well, cost per bbl, lifting costs, etc.

Other reports on the I/M menu which might be of interest include:

PROPERTY SUMMARY REPORT

- This report shows 1 line per property with production, revenues, taxes, expenses summarized for any specified period of time.

12 MONTH SPREADSHEET

- This report prints 12 months across the page and prints property down the page. The user can select any combination of mcf, bbl, gross revenues, taxes, net revenues, expenses, or net profit and each item selected will print as a separate line for each property

REVENUE SUMMARY REPORT

- This report will print the production, gross revenue, taxes, marketing costs, and net revenue for each of the 12 months of a specified year with each property on a separate page.

EXPENSE SUMMARY REPORT

- This report will print each expense category, (billable account) for each of the 12 months of a specified year with each property on a separate page.

DETAILED WELL EXPENSES

- This report will print the detailed expenses, showing vendor, invoice #, invoice amount, etc. for expenses billed to a property. The user can select specific properties, periods of time, etc

HOW DO I REVIEW PROPERTY CASH FLOWS

Two methods are available for reviewing property cash flows. One method is to run the menu item “PRINT O/G OPERATIONS REPORT” on the Application/Investor Management menu. This report prints one line per property showing the production, revenue, expenses, net cash flow for any one specified month and also for the calendar YTD or fiscal YTD. This report only allows the user to see the one specified month and the YTD figures. The second method of reviewing property cash flows is to run the menu item “PROPERTY CASH FLOWS” on the Application/Investor Management menu. This program allows the user to select a property and the interest type (8/8 ths, your own interest, or total working interest) and a 12 month period of time and the production, revenues, taxes, expenses, and net cash flow will be immediately displayed for each of the 12 months. The user can then scroll forward or backwards to display the same data for other 12 month periods of time. An option is also available to print the screen at any time.

HOW DO I ADD PROPERTIES TOGETHER

The history files maintained in the Investor Management module retain the production, revenues, and expenses by owner, by property. Most all of the reports available on the I/M menu provide the option of adding properties together in two different groupings (by Prospect or by Lease). Don’t let the use of the terms “Prospect” and “Lease” become a problem. In reality, properties can be added together 2 different ways, forget the terms “Prospect” and “Lease”.

When each property is created by running the menu item “PROPERTIES” on the

Application/Master Files menu, the user can specify a value for the fields called “Prospect” and “Lease” or these fields could have been left blank. As an example, suppose you want to add properties together that were included in different purchases. You could use either the field called “Prospect” or the field called “Lease” in the property master file to specify the purchase for each property. If three properties were purchased from Jones Operating Co. you could enter a value such as “JONES” in the “Prospect“ field or in the “Lease” field for each of the 3 wells. Six other wells that were purchased together from Houston Oil & Gas might contain a value such as “HOUSTON” in the “Prospect” field or the “Lease” field. Let’s assume you decided to use the “Prospect” field to group properties by the purchase. Then, when printing any of the reports, select the “Summarize by Prospect” option and each of the 3 properties purchased from Jones Operating would be added together and the 6 properties purchased from Houston Oil & Gas would be added together. Meanwhile, the other field called “Lease” could be used to group the properties a different way.

In order to have a meaningful name print for these groupings, you should add two new properties to the property file. One property should have a property number of “JONES” and a property name of “Properties in Jones Purchase”. The second property should have a property number of “HOUSTON” and a property name of “Properties in HOUSTON O/G Purchase”.

How Do I...

Depletion

HOW DO I RECORD DEPRECIATION

& AMORTIZATION ON FOR PROPERTIES

Neither depreciation nor amortization are presently calculated by the software. However, each can still be calculated manually and entered into the expense history files for inclusion on Investor Management property reports. To enter the manually calculated depreciation or amortization, use the menu item “ENTER / CHANGE G/L JOURNAL ENTRIES” on the Application/General Ledger menu.

HOW DO I RECORD DEPLETION FOR PROPERTIES

The Depletion software module will perform all depletion calculations and print a report showing the resultant depletion. See the section on the depletion module for detailed explanations. But, the Depletion module does not automatically post the depletion to the Investor Management history files. The reason for not posting is based on the fact that the I/M history files are maintained by property whereas the Depletion module calculates the depletion for a Depletion Field which is not necessarily one property. A Depletion Field can be a combination of multiple properties at the user’s discretion.

Since the calculated depletion is not posted to the I/M history files, it must also be entered into the history files the exact same way the depreciation and amortization is entered (see previous discussion) with the only exception being the G/L account to be entered would be the G/L Billable account for depletion.

How Do I...

Joint Interest Billing

HOW DO I SETUP JIB DISTRIBUTION LEVELS

A “JIB Distribution Level” is a list or owners to be billed for property. Each distribution level is assigned a 2-digit number with JIB Distribution Levels requiring a DL number 01-49. The DL number is assigned by the user when the Distribution Level is created. Each property can have a maximum of 49 JIB Distribution Levels but in most instances each property will have one Expense Distribution Level assigned a DL number of 01-49 (most people assign 01). So each property could have its own JIB Distribution Level 01. Each distribution level can have an unlimited number of owners but the total decimal interest must be exactly 1.00000000.

To create a JIB Distribution Level, run the menu item “JIB DISTRIBUTION LEVELS” on the Application/Master Files menu. See the section on CREATING MASTER FILES – DIVISION OF INTEREST MASTER FILE for an explanation on creating JIB Distribution Levels.

HOW DO I GROUP EXPENSES ON THE JIB

When the JIB invoices print, each expense will appear under a major category such as “Lease Operating Expense”, “Equipment”, “Intangible Drilling Costs”, etc. The purpose in grouping the expenses is to categorize the expense for the owner receiving the invoice.

Within the General Ledger, a separate group of accounts called “Billable Accounts” are established and any item being charged to a property must be charged to one of the billable accounts. You can have as many billable accounts as you desire. The reports produced by the I/M module will show the expenses for each property for each billable account. So you might have 20 different billable accounts all of which are LOE type expenses, and you might have another 10 billable accounts all of which are Equipment type expenses. When each billable account is established in the General Ledger by running the menu item “G/L ACCOUNTS” on the Application/Master Files menu, one of the requirements is to specify the “JIB CLASS” associated with each billable account. The JIB CLASS is a one digit alphabetic code (A-Z). The menu item “JIB CLASSES” on the Application/Master Files menu allows the user to enter a JIB Heading for each of the 26 JIB CLASSES. So, suppose you want the JIB CLASS “A” to have a heading of “Lease Operating Expenses” and JIB CLASS “B” to have a heading of “Equipment”. Run the menu item “JIB CLASSES” on the Application/Master Files menu and enter these two headings for JIB CLASSES A & B.

Then, ensure that each of the 20 LOE billable accounts contain “A” as the JIB CLASS and ensure that each of the 10 Equipment billable accounts contain “B” as the JIB CLASS.

In summary, each G/L billable account specifies (JIB CLASS field) the heading under which the charge will appear on the JIB and the menu item “JIB CLASSES” on the Application/Master Files menu allows the user to enter a “Heading” that will appear on the JIB for each JIB CLASS.

HOW DO I ACCUMULATE PROPERTY EXPENSES FOR BILLING

Expenses to be billed to properties come from only three sources, the Accounts Payable module, the Payroll module, and the General Ledger module. When A/P invoices are entered into the computer by running the menu item “NEW A/P INVOICES” on the Application/A/P menu, the user can indicate an amount to be charged to a property by entering the amount, property number, DL #, and G/L billable account. When these invoices are posted by running the menu item “POST NEW A/P INVOICES” on the Application/A/P menu, any amounts to be billed to a property are automatically sent to the JIB module and accumulated with other such expenses awaiting billing. Similarly, other A/P programs including menu items “REMOVE A/P

INVOICES” and “RECURRING A/P INVOICES” on the Application/A/P menu send charges to be billed to properties to the JIB module.

When entering Payroll timecards, the user can specify that certain wages are to be billed to a property and DL. When the payroll checks are printed and posted, any charges to properties are automatically sent to the JIB module to await billing.

The only other method of entering charges to be billed to a property is via the menu item “ENTER/CHANGE G/L JOURNAL ENTRIES” on the Application/G/L menu. This menu item provides the means of entering indirect expenses, travel expenses, management fees, etc. to be billed to properties. When the menu item “POST G/L JOURNAL ENTRIES” on the Application/G/L menu is executed, all billable charges are automatically sent to the JIB module to await billing.

These charges awaiting billing will continue to accumulate in the JIB module until the billing is actually performed. At that time, the user selects the charges to be billed and once billed, these charges are automatically removed for those awaiting billing.

HOW DO I ALLOCATE EXPENSES BETWEEN PROPERTIES

There are several instances in which you receive a bill each month for a varying amount but you always split the bill amongst several properties in the same proportions. An example would be a utility bill for one utility meter supplying electricity to 10 different wells and you have derived appropriate percentages for allocating this bill to the 10 properties. Rather than entering 10 different distributions of this invoice when entering the invoice into A/P, another option is available to ease this entry process.

A maximum of 49 “JIB Allocation Levels” can be created by using the menu item “JIB ALLOCATION LEVELS” on the Application/Master Files menu. Each Allocation Level is assigned an Allocation Level number 01-49 similar to a JIB Distribution Level; however, an allocation level allows the user to specify a property, JIB Distribution Level, and percentage for use in splitting an expense. Each Allocation Level must total 100%. So, maybe Allocation Level 01 is to be used to split the previously mentioned utility bill between 10 properties, whereas Allocation Level 02 is used for something else.

Once the Allocation Level is established, it can be used when entering an A/P invoice or when entering a G/L Journal Entry. As an example, when entering the utility bill and you want to distribute the bill to 10 different properties, simply make one entry for the full invoice amount and enter “ALLOCATE” in the field called property, and enter “01” (the allocation level) in the field called DL. When this invoice is posted, this one entry will become 10 entries per the Allocation Level 01 and 10 charges will be sent to the JIB module to await billing.

HOW DO I REVIEW EXPENSES WAITING TO BE BILLED

HOW DO I MODIFY EXPENSES WAITING TO BE BILLED

Once a charge has been sent to the JIB module to be billed, certain items associated with this charge can be changed while other items can’t be changed. Items which can’t be changed include:

· vendor #

· invoice #

· amount

· G/L account

If any of the above items are not correct, they must be corrected by entering reversal entries such as a G/L Journal Entry.

On the other hand, many items can be changed and these items include:

· description

· DL #

Charges can’t be added or deleted.

HOW DO I CORRECT EXPENSES THAT

WERE POSTED INCORRECTLY

As discussed in the preceding section, if an expense is charged to an incorrect JIB Distribution Level, the DL can be changed by running the menu item “REVIEW UNBILLED EXPENSES” on the Application/JIB menu. But, if the property or G/L account is not correct, a reversing G/L journal entry must be entered and posted. Such a reversing journal entry would credit the original property, DL, and G/L account and the offset would be a debit to the correct property, DL, and G/L account.

When this reversing G/L Journal Entry is posted, these two new entries (debit & credit) would be sent to the JIB module to await billing. If you now ran a list of unbilled expenses, both the original charge and the credit would show for the wrong property and will appear on the JIB. The “OFFSETTING” option on the command line of the menu item “REVIEW UNBILLED EXPENSES” on the Application/JIB menu allows the user to specify the two entries which are for the same property & G/L account but are for opposite amounts (one is a debit and the other is a credit) and these two entries will be deleted from those charges awaiting billing.

HOW DO I CHARGE PREPAID EXPENSES TO A PROPERTY

On many occasions, it is desirable for an operator to bill and collect money from owners in advance of performing the work. See the section on “ADVANCE BILL AFE COSTS TO OWNERS” for an explanation concerning that advance billing process.

This section deals with the processing of the invoices from vendors relating to properties where the work has been advance billed to the owners. When entering each invoice into Accounts Payable, the user can specify the DL to be used for splitting the expense amongst owners. The Distribution Level controls whether this charge is to be billed to the owners or if it is to be charged against their advance payment. When preparing your JIB’s, part of the selection process is to specify if you want to process “Billable Expenses” and do you want to process “Charges Against Advances”.

HOW DO I CHARGE EXPENSES TO ONE SPECIFIC OWNER

When entering a G/L Journal Entry via the menu item “ENTER/CHANGE G/L JOURNAL ENTRIES” on the Application/G/L menu or when entering an invoice into A/P, the user can specify a property and a Distribution Level to indicate the charge is to be billed to the owners on the Distribution Level for the specified property. However, the next field to the right of the Distribution Level entitled “OWNER” is available if you want to charge the entire amount to one owner. If you enter the Distribution Level, leave the Owner blank. If you enter the owner number, leave the Distribution Level blank.

HOW DO I SELECT EXPENSES TO BE BILLED

The items to be billed (Billable Expenses), the items to be applied against owners advance payments (Charges Against Advances), and the items to be advance billed (Advance Billings) continue to accumulate in the JIB module. The first step in the processing of these 3 types of charges is to select those items that you want to process by running the menu item “SELECT CHARGES FOR BILLING” on the Application/JIB menu. The first option is to select charges regardless of the G/L accounting period to which they were posted or to select only those charges that were posted to a specified accounting period.

The second option allows the user to specify the types of charges to be processed. The user can select any combination of Billable Expenses, Charges against Advances, and/or Advance Billings to be processed on the same run. Finally, the user can specify which properties are to be selected for processing, all properties or selected properties. Once the user has responded to these choices, a list of charges selected for processing can be produced.

Each property having charges awaiting process is displayed in one of two boxes, those selected and those not selected. The user can change whether a property is selected/not selected. This process can be rerun as many times as necessary, it is the first step in the printing of JIB’s and it does part of the arithmetic associated with the splitting of the charges to the owners. The JIB run is never finalized until the JIB’s are posted, so it is possible to print the JIB’s and realize something needs to be changed. You can make the changes, add additional charges, change a distribution level, etc, but you must always restart the JIB run by running the menu item “SELECT CHARGES FOR BILLING” on the Application/JIB menu.

HOW DO I PRINT JOINT INTEREST BILLINGS

Once the charges have been selected for processing, the printing of the Joint Interest Billings consists of two steps. The first step is to run the menu item “PRINT JIB CONTROL REPORTS” on the Application/JIB menu. This program will print a report for each property showing the charges being billed and the list of owners being billed each with their invoice number and amount. This is an in-house report for your review prior to the printing of the actual invoices.

If the JIB Control Reports need to be modified, make your modifications by adding charges, changing Distribution Levels, etc. and once all modifications have been made, rerun the menu item “SELECT CHARGES FOR BILLING” on the Application/JIB menu and also rerun the menu item “PRINT JIB CONTROL REPORTS” on the JIB menu.

Once the JIB Control reports have been produced, reviewed and determined to be correct, run the menu item “PRINT JIB INVOICES” on the Application/JIB menu to print the actual JIB invoices. Again, even at this point, if modifications are required, make your modifications by adding charges, changing Distribution Levels, etc. and once all modifications have been made, rerun the menu item “SELECT CHARGES FOR BILLING” on the Application/JIB menu, rerun the menu item “PRINT JIB CONTROL REPORTS” on the Application/JIB menu, and also rerun the menu item “PRINT JIB INVOICES” on the Application/ JIB menu. Once the printed JIB invoices are as desired, run the menu item “POST JIB INVOICES” on the Application/JIB menu to finalize the invoices.

HOW DO I ADVANCE BILL AFE COSTS TO OWNERS

Whenever it becomes desirable to bill owners in advance, run the menu item “ENTER ADVANCE BILLING REQUESTS” on the Application/JIB menu to place a request for an advance billing into the JIB file which contains all the charges waiting to be processed. Once this advance request has been entered, the section on “How do I select the expenses to be billed” explains the procedure for producing the advance invoices to each owner.

When entering the Advance Billing Request, the following data fields are required:

DATA FIELD	DESCRIPTION
Property	Enter the property number or use the “lookup” feature to specify the property number.
DL	Enter the Expense Distribution Level or use the “lookup” feature to specify the DL number. If the DL number is entered, leave the Owner blank. If the Owner is entered, leave the DL field blank.
Owner	Enter the ID number for owner or use the “lookup” feature to specify the owner number. Enter either the owner or the DL, not both.
JIB TYPE	Enter the JIB TYPE code (A-Z) for Advance Billings
Description	Enter a brief description of the charges being billed
Advance Amount	Enter the amount to be billed.

HOW DO I CORRECT BILLING AFTER IT IS POSTED

Once JIB invoices have been posted, they are unchangeable. If invoices have been posted which are not correct, the only remedy is to enter additional G/L Journal Entries that credit the original property/DL/Account and debit the correct property/DL/Account. Once such G/L Journal Entries are posted, these charges are automatically sent to the JIB module to await invoicing. You can perform the JIB invoicing process again and bill these new charges now or wait until the next regularly scheduled billing run. The end result will be the creation of additional invoices that will offset the items billed in error.

HOW DO I RECALL POSTED JIB INVOICES

When the JIB invoices are posted, a copy of the actual invoice is retained in a history file. Invoices can be recalled from this history file for viewing or reprinting. To recall a JIB invoice, run the menu item “RECALL JIB INVOICES” on the Application/JIB menu. You must specify the desired owner and then a list of all JIB invoices for that owner is displayed and you can select the desired invoice.

How Do I...

Lease Records

HOW DO I SETUP A LEASE

Leases are created by running the menu item “LEASES” on the Applications/Master Files menu. Each lease must be assigned a unique 8-digit lease number consisting of any combination of alphabetic, numeric, or special characters. The data fields required for each lease include:

DATA FIELD	DESCRIPTION
Lease #	Enter the unique lease number, max of 8 characters
Name	Enter a brief description for this lease
Lessee	Enter the name of the lessee
Lessor	Four lines are available for entry of the lessor
Recorded in Volume	Enter the volume where the lease has been recorded
Page	Enter the page # where the lease has been recorded
County/Parish	Enter the county or parish where the lease has been recorded
State	Enter the 2 digit Postal Service abbreviation for the state where the lease has been recorded
Prospect Area	Enter the property # or use the “lookup” feature to specify the property # of a prospect. This field can be left blank.
Lease Starts/Ends	Enter the beginning and ending dates of the lease
Delay Rental Amount	Enter the amount of each delay rental payment
Is Due Every ___ Months	How often is the delay rental due (6 months, 12 months, etc.)
Delay Rental Last Paid On	Enter the date the delay rental was last paid. For new lease, enter the lease start date.
Delay Rental Is Next Due On	Enter the date when the next delay rental payment is due.
Subject to Pugh Clause	Select “yes” or “no”
Bonus Amount	If a bonus payment of any kind is due, enter the amount.
Minimum Royalty	If a minimum royalty amount is required, enter the minimum.
Shut-In Bonus	If the well is shut-in, is a bonus payment due. If so, enter the amount.
Gross Acres	Enter the number of gross acres covered by this lease
Net Acres	Enter the number of net acres covered by this lease
Lease Status	Select “held by production” “shutin” “drilling in progress” “inactive”
Debit Payments to G/L	Enter the G/L account or use the “lookup” feature to specify the G/L account to be debited when checks are written for this lease.
Shut-In Comments	Ten lines are available for the entry of any comments pertinent to the shut-in of the wells holding this lease.
General Comments	Ten lines are available for the entry of any other comments pertinent to this lease.

The data fields shown above are required when running the menu item “LEASE” on the

Applications/Master Files menu. One other menu item is also required to complete the setup of a lease. The menu item “LEASE DISTRIBUTION LEVEL” on the Applications/Master Files menu must be run to setup the list of payees to receive the delay rental and bonus payments. The list of payees for a lease is much like a Distribution Level. It consists of the following data fields:

DATA FIELD	DESCRIPTION
Payee	Enter the ID number of the payee or use the “lookup” feature to specify the ID number of the payee.
Decimal	Enter the decimal for the portion of the total payment due to this payee.
Rental	Enter the actual delay rental amount due this payee.
Srv Chg	Enter any amount to be added to this payees check to cover a service charge required by a bank

You cannot exit from the editing of the list of payees for a lease unless the total amount in the “Rental” column exactly matches the “Delay Rental” amount previously entered in the lease master file and the total in the “Decimal” column is exactly 1.00000000.

HOW DO I REVIEW CRITICAL ACTIONS

As previously explained, critical actions are entered for each lease. The menu item “PRINT CRITICAL ACTIONS” on the Applications/Lease Records menu provides an option to list the critical actions. This option allows the user to restrict the list to certain leases, specific counties, specific states and to a specified range of dates. Once this selection criteria is entered, a list of all critical actions which meet this selection criteria is created and can be sorted into date order or in lease number order.

HOW DO I REVIEW LEASES DUE TO EXPIRE

Each lease in the Lease Master File has a field called “Lease Ends” which is the termination date for the lease. The menu item “PRINT LEASE EXPIRATION REPORT” on the Applications/Lease Records menu allows the user to specify a date and a report will be created which includes all leases due to expire before the user supplied date. The user can also restrict the report to certain leases and/or certain states.

HOW DO I REVIEW / SELECT LEASES TO PAY

When running the menu item “SELECT LEASES FOR PAYMENT” on the Application/Lease Records menu, the user first specifies which type of payment is desired. If the user selects minimum royalty payments, a screen display is produced which shows the lease number, lease name and minimum royalty amount in a column called “Unselected” for all leases which have an amount in the minimum royalty field. If the user selects shut-in bonus payments, a screen display is produced which shows the lease number, lease name and shut-in bonus amount in a column called “Unselected” for all leases which have an amount in the shut-in bonus field. . If the user selects delay rental payments, the user is prompted to enter a date and then a screen display is produced which shows the lease number, lease name, due date of the delay rental, and the delay rental amount in a column called “Selected” if the due date is before the user supplied date or in a column called “Unselected” if the due date is after the user supplied date for all leases which have an amount in the delay rental amount field.

The user can then select the leases to be paid by clicking on the desired amount to change the lease from selected to unselected. An option to list the leases selected for payment is available on this screen. The end result of this selection process is the marking of certain leases to be paid when the menu item to print checks is executed. This menu item “SELECT LEASES FOR PAYMENT” can be rerun as often as desired and previous settings are always totally replaced with the results from the new run.

HOW DO I WRITE DELAY RENTAL / BONUS CHECKS

Once the leases you want to pay have been selected (SELECT LEASES FOR PAYMENT menu item) the checks are actually produced by running the menu item “PRINT LEASE RECORDS CHECKS” on the Applications/Lease Records menu. This process will print the actual checks to all payees and print a Preliminary Check Register. However, if the checks are not as desired, they can be destroyed and the process of selecting the leases to pay and the printing of the checks can be performed again. Continue this process until the checks are correct and then run the menu item “POST LEASE RECORDS CHECKS” on the Applications/Lease Records menu to finalize the checks. Once posted, the payments are recognized in all appropriate software modules.

HOW DO I REVIEW PAYMENT HISTORY ON LEASES

When the lease payments are posted, a history of all checks is automatically maintained within the L/R module and the menu item “PRINT LEASE PAYMENT HISTORY” on the Applications/Lease Records menu can be run to obtain a list of checks written. The user can restrict the list to certain leases, certain payees and only checks written during a certain period of time. All checks, whether written for delay rentals, minimum royalties, or shut-in bonuses are included in this report.

HOW DO I REVIEW INVENTORY OF LEASES

An inventory (list) of leases that meet certain criteria can be obtained by running the menu item “PRINT LEASE INVENTORY REPORT” on the Applications/Lease Records menu. The user is allowed to specify certain criteria and all leases which meet this criteria will be included on the resultant report. The criteria available for user specification include:

· certain lease numbers

· certain counties

· certain states

· certain prospects

· include only if lease expires before an user specified date

· include only if lease has a Pugh clause

· include only if lease has an user specified status code

HOW DO I VOID A LEASE RECORDS CHECK

Unless the lease records checks have been posted, there is no need to void a check (the check is not yet recognized by any software module). If a check is wrong and the checks have not been posted, correct the situation causing the error and rerun the checks.

Once the checks have been posted and you want to void a check, run the menu item “VOID L/R CHECKS” on the Applications/Lease Records menu. This menu item allows the user to build a list of checks to be voided by specifying the ID number of the payee and selecting the check to be voided from a list displayed showing all checks written to the specified payee. The checks selected to be voided are not actually voided unless you click the “POST” box on the command line.

HOW DO I RECORD A MANUAL L/R CHECK

DATA FIELD	DESCRIPTION
Payee	Enter the ID number of the payee or use the “lookup” feature to specify the ID number of the payee.
Check Number	Enter the check number of the manually written check
Check Date	Enter the check date
Payment Amount	Enter the amount of rental/bonus included in the payment
Service Charge	Enter the amount of service charge included in the payment
Payment on Lease	Enter the lease number or use the “lookup” feature to specify the lease number
Payment Type	Select “delay rental” “bonus” “minimum royalty” “shut-in bonus”
Lessee	Enter the name of the lessee
Lessor	Enter the name of the lessor
Volume	Enter the volume where the lease is recorded
Page	Enter the page where the lease is recorded
County/Parish	Enter the county/parish where the lease is recorded
State	Enter the state where the lease is recorded
Debit to G/L Account	Enter the G/L account or use the “lookup” feature to specify the G/L account to be debited when the manually written check is posted.

Once posted, the manual checks are included with the computer-produced checks in the Payment History file and the Lease Master file is updated to reflect the check payment.

HOW DO I POST TRANSACTIONS TO G/L FROM L/R

When your company was originally setup, the interfacing of the Lease Records module to the G/L module was specified. To change the interfacing of Lease Records to General Ledger, run the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu. Click on the heading “Lease Records” to indicate you want to change the configuration of the Lease Records module. Several configuration questions pertaining to the Lease records module will be displayed and the user can change any of the current settings. One of the configuration items is “Interface Lease Records to G/L”.

HOW DO I POST L/R CHECKS TO BANK RECONCILIATION

When your company was originally setup, the interfacing of the Lease Records module to the Bank Reconciliation module was specified. To change the interfacing of Lease Records to Bank reconciliation, run the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu. Click on the heading “Lease Records” to indicate you want to change the configuration of the Lease Records module. Several configuration questions pertaining to the Lease records module will be displayed and the user can change any of the current settings. One of the configuration items is “Interface Lease Records to Bank Reconciliation”.

HOW DO I REVIEW LEASE RECORDS 1099 DATA

The data to be reported on 1099’s at yearend for the lease payments can be reviewed and corrected prior to printing the 1099’s by running the menu item “1009, REVIEW LEASE RECORDS 1099 DATA” on the YEAREND menu. When running this menu item, the user must first specify what year is to be reviewed and/or corrected and then the user can choose to either produce a listing of the payments to be shown on 1099’s for the specified year or the user can choose to revise the payment data.

If the user elects to revise the payment data, the user must specify a payee number and all payments made to that payee during the specified year will be displayed on the screen. The user can then add additional payments, delete payments, or revise the amount of a payment. Although the user can add or delete a payment, the revised payment is not reflected in G/L.

HOW DO I PRINT 1099’S FOR LEASE RECORDS PAYMENTS

All 1099 forms are printed or written to magnetic media by running the menu item “1099, CREATE 1099 FORMS/FILES” on the YEAREND menu. The user can choose to include lease records, accounts payable, and/or revenue distribution payments on the 1099 forms or magnetic media.

The 1099 forms/file can be produced as often as desired. If it is not correct, the data can be corrected as described in the previous section and the 1099 forms/file can be produced again. The payee must be provided with notification of the amounts reported to the IRS on the 1099’s. This is usually accomplished by using multi-part 1099 forms and sending one of the copies of the actual 1099 to the payee. However, if you don’t print actual forms but instead create a file to be sent to the IRS, there is no copy of a form to send to the payee. In this case there are two solutions. One solution is to purchase 1099 forms and print them in addition to creating the file and send a copy of the 1099 form to the payee. A preferred option is to specify that letters to the payees be printed when you are creating the file. This option will result in the printing of a letter from your company to each payee stating the amounts being reported to the IRS on your 1099.

HOW DO I DELETE A LEASE

HOW DO I RECALL LEASE RECORDS CHECKS

When the Lease Records checks are posted, a copy of the actual check is retained in a history file. Checks can be recalled from this history file for viewing or reprinting. To recall a Lease Records check, run the menu item “RECALL LEASE RECORDS CHECKS” on the Application/Lease Records menu. You must specify the desired payee and then a list of all Lease Records checks for that payee is displayed and you can select the desired check.

How Do I...

Payroll

HOW DO I SETUP A NEW EMPLOYEE

Each employee must be assigned a unique 4-digit employee number. This employee number can contain any combination of alphabetic, numeric, or special characters. To setup a new employee, run the menu item “EMPLOYEES” on the Application/Master Files menu. This program allows the user to add, change, or delete employees to the Employee Master file.

The following data fields are required for each employee:

DATA FIELD	DESCRIPTION
Employee #	Enter the unique 4-digit number for this employee
Name	Enter the employee’s name
Social Security #	Enter the employee’s social security number
Address	Enter the mailing address for the employee
City, State & Zip	Enter the correct city, state & zip code for this employee
Work Category	This field can be used to categorize the employees into groups (engineers, field workers, clerical, etc). Enter any applicable description into this field but be consistent (use the exact same spelling for similar employees. This field can be left blank.
Phone	Enter the employees home phone number
(S)alary/(H)ourly	Select “salaried” or “hourly”
Pay Rate	Enter the salary paid each pay period to a salaried employee or enter the hourly pay rate for hourly employees
OT Rate	Leave this field blank for hourly employees. If a salaried employee is to be paid for overtime, enter the hourly rate for their overtime pay
Extra W/H	If an employee wants additional federal income tax withheld above and beyond that calculated from the normal tax tables, enter the extra amount of federal income tax to be withheld from each pay check.
Federal Tax Table	Enter the tax table number for federal income taxes for this employee
Federal….M/S	For federal income tax purposes, is this employee “married” or “single”
Federal….Exemptions	Enter the number of exemptions claimed by this employee for federal income tax purposes
State Tax Table	Enter the tax table number for state income taxes for this employee
State….M/S	For state income tax purposes, is this employee “married” or “single”
State….Exemptions	Enter the number of exemptions claimed by this employee for state income tax purposes
Date Hired	Enter the hire date for this employee. This field can be left blank.
Date Terminated	Enter the termination date for this employee. If the employee is currently working, this field should be left blank.
Date of Last Raise	Enter the date this employee last received a raise. This field can be left blank.
G/L Acct – Wages	Enter the G/L account or use the “lookup” feature to specify the expense G/L account this employee’s gross wages should be debited to when wages are paid.
W/C Class	Enter the 1-digit code for the Workman’s Compensation Class this employee belongs to. Run the Workman’s Comp Codes menu on the Applications/Master Files menu to give W/C classes a name
Hours Accrued SL	Enter the number of hours of sick leave accrued by this employee
Hours Accrued Vac	Enter the number of hours of vacation accrued by this employee
Deduction Code	Enter the deduction code. Names for seven deductions (insurance, 401K, etc.) can be specified for your company by running the Payroll Deductions/Adjustments menu on the Applications/Master Files menu
Deductions, Dollars	Enter this field and leave the next field blank or leave this field blank and enter the next field. Enter the dollar amount to be withheld from this employees check for each deduction.
Deductions, Percent of Gross	Enter this field and leave the prior field blank or leave this field blank and enter the prior field. Enter a percent of gross wages to be withheld from this employees check for each deduction.

HOW DO I MODIFY FEDERAL TAX WITHHOLDING TABLES

HOW DO I MODIFY SOCIAL SECURITY AND MEDICARE RATES

HOW DO I DEFINE PAYROLL DEDUCTIONS

HOW DO I DEFINE WORKMAN’S COMP CLASSES

Each employee in the Employee Master File must have a Workman’s Comp code specified. In order to specify the code it must first be established in the Workman’s Comp Code Master File by running the menu item “Workman’s Comp Codes” on the Application/Master Files menu.

There are 26 codes available (A thru Z). You can assign any Workman’s Comp category to any Workman’s Comp code. For instance, if you had only two categories (“clerical” and “truck drivers “), you could assign the name “CLERICAL” to Workman’s Comp Code “A” and assign the name “TRUCK DRIVERS” to Workman’s Comp Code “B”. This is accomplished by running the menu item “Workman’s Comp Codes” on the Application/Master Files menu and entering the names for code “A” and code “B”.

HOW DO I DEFINE TYPES OF ADDITIONAL PAY

When entering timecard information into payroll, an employee can also be paid for additional items other than wages by entering an amount and an adjustment code for the additional item. Such codes must be setup in advance. Examples of such additional pay items would include gas allowance, mileage pay, bonus pay, expense reimbursement, etc. Adjustments can be added, changed or deleted from the Payroll system by running the menu item “PAYROLL DEDUCTIONS / ADJUSTMENTS” on the Applications/Master Files menu. Once the adjustment is established, the amount to be deducted for each employee must be entered on the timecard for each employee.

HOW DO I HANDLE STATE INCOME TAXES

State withholding tables are provided for Oklahoma, Kansas, New Mexico, and Colorado. These tables are provided by the manufacturer. State income taxes are calculated and withheld from employees checks based on the value entered into the data fields called “State….xx…….M/S..x……Dependents..xx” in the employee master file. The “state” portion contains the 2 digit Postal Service abbreviation for the state where the employee normally works. When timecards are entered for an employee, this value for the state currently in the employee master file is automatically entered as the state where the employee worked; however, the user can override this default value for the state by changing the value for the state on the timecard. The resultant value for the state, as entered on the timecard along with the Married/Single specification and the # of dependents from the employee master file will control the calculation of state income taxes.

Some states don’t have an income tax (Texas) but the state code of “TX” should still be carried in the employee master file and should be left as the default value for the state on an employee’s timecard who worked in Texas.

If you have a need for other states, please contact Bayside Computer Systems, Inc.

HOW DO I HANDLE WAGE GARNISHMENTS

If you want to garnish employee wages, the following information must be entered into the employee master file for that employee by running the menu item “EMPLOYEES” on the Applications\Master Files menu:

DATA FIELD	DESCRIPTION
Garnishment Description	An unlimited # of lines are available to describe the reason for garnishing this employee’s wages
Garnishment, Send Pay To	Enter the ID number or use the “lookup” feature to specify the ID number of the person/company to receive the garnished wages.
Garnishment Amount, $	Enter the dollar amount to be garnished from this employee’s wages each payroll period. Enter $ or %, not both.
Garnishment Amount, %	Enter the percent of gross wages to be garnished from this employee’s wages each payroll period. Enter $ or %, not both
Last Payment	Enter the date of the last garnishment of this employee’s wages
Paid To Date	Enter the total dollar amount already garnished from this employee
CY	Enter the payroll cycle when the garnishment is to be taken

Whenever a payroll run is conducted, the above fields in the employee master file are examined to see if any wages are to be garnished from an employee. If the above data fields are blank, no wages are garnished. If the above data fields contain data, the specified amount of wages is calculated and withheld from the employees check. When payroll checks are printed, the user has the option of also having checks printed for any garnishments and if this option is chosen, checks are written for the garnished wages to the person/agency specified to receive the wages.

HOW DO I ENTER TIMECARDS

When entering the timecards, the user specifies a batch number to be used for this payroll run and then a screen display is produced showing all the existing timecard entries in that batch. The user can then add, change, or delete timecard entries as desired. An employee can have multiple timecard entries. This occurs when an hourly employee is paid at different pay rates, when the labor costs are to be billed to different properties, etc. The command line contains a unique command “Salaried” which will add a timecard entry for each and every salaried employee. When entering the timecard data, the following data fields are required:

DATA FIELD	DESCRIPTION
Employee	A window will appear with all employees listed and you can select the desired employee
ST Hours	Enter the number of straight time hours to be paid the employee. If the employee is salaried, enter 80.
OT Hours	Enter the number of overtime hours to be paid this employee
VA Hours	Enter the number of vacation hours to be paid this employee
SL Hours	Enter the number of sick leave hours to be paid this employee
ST Rate	The hourly rate or the salary amount will appear as the default rate. Change it if you want.
Property	If the gross wages for this entry is to be billed to a property, enter the property number or use the “lookup” feature to specify the property number. If the wages are not billable, leave this field blank.
DL	If a property was entered you must enter the Distribution Level or use the “lookup” feature to specify the DL to be used for billing the wages. If the property is blank, leave this field blank.
State	Enter the state where the employee worked. This field should not be left blank.
City	Enter the city tax code for the city where the employee worked. This field can be left blank.
Adjust	Enter any amount of additional pay for this employee above and beyond the employee’s wages. If an amount is entered, the applicable code must be entered in the adjoining TYP field. This field can be left blank.
Code	If the Adjust field is blank, leave this field blank. Otherwise, enter the appropriate code to additional pay. These codes have been setup in the company configuration of payroll.

HOW DO I WRITE PAYROLL CHECKS

Once the timecard entries are entered and are correct, the wages, taxes, deductions must be calculated. Run the menu item “CALCULATE DEDUCTIONS” on the Application/Payroll menu to perform these calculations. You will be prompted for the batch number of timecard entries to be used in the calculations. Once the calculations are performed, two options are available for reviewing the results of the calculations. The menu item “PRINT PAYROLL REVIEW” on the Application/Payroll menu will print a report showing each employee’s wages, taxes, deductions, etc. The other option is to skip the printing of this report and instead print the actual payroll checks by running the menu item “PRINT PAYROLL CHECKS” on the Application/Payroll menu. Even if you print the payroll review report, you must still print the payroll checks.

If corrections need to be made after printing the payroll review report or after printing the actual checks, the payroll timecards can be revised as necessary, the tax tables can be revised as necessary, etc. and the process of calculating the wages/deductions and printing the payroll review and/or payroll checks can be performed again. This process can be performed as often as needed to obtain the desired results. The payroll run is finalized only when the checks are posted by running the menu item “POST PAYROLL CHECKS” on the Application/Payroll menu. This posting process will post only the last batch of checks printed.

HOW DO I VOID A PAYROLL CHECK

If you need to void a payroll check, run the menu item “VOID PAYROLL CHECKS” on the Application/Payroll menu and select the checks to be voided. Click the “Post” button on the command line and the payroll system will be updated to reflect the voiding of the checks.

HOW DO I ENTER A MANUAL PAYROLL CHECK

HOW DO I HANDLE PAYROLL TAX DEPOSITS

Each time payroll checks are printed, the user has the option of printing a check to the bank or the IRS for the Federal payroll tax deposit for that payroll run. This check will include employee and employer payments for social security, medicare and federal income taxes withheld from the employee.

If the user does not elect to have the check for the deposit written at the time the payroll checks are written, the following process should be followed to review the taxes owed and to pay the taxes. The following procedure should be followed for state taxes as well. Run the menu item “PRINT TAX DEPOSIT REPORT” on the Application/Payroll menu and specify the desired range of dates. A report will be printed which includes all payroll checks written during the specified period of time. The report shows all federal taxes due plus all state taxes due to each individual state.

Once the amount of taxes owed has been determined, enter an active invoice into Account Payable for the federal taxes you want to pay and also enter an invoice for each state to whom you intend to pay the taxes. When entering these invoices, debit the same G/L accounts as are currently specified for social security payable, medicare payable, federal tax w/h, and state tax w/h in the Configuration file for the Payroll section.

HOW DO I POST PAYROLL CHECKS TO BANK REC

When your company was first setup, interfacing of the payroll module to Bank Reconciliation was specified. To see if the interfacing of payroll to Bank Reconciliation is activated or to change the interfacing specification, run the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu. Select the Payroll portion and one of the configuration options will address the interfacing of Payroll to Bank Reconciliation. Select “yes” if you want to have Payroll checks automatically recorded in the Bank Reconciliation files or select “no” to suppress the posting of Payroll checks to the Bank Reconciliation files.

HOW DO I POST PAYROLL CHECKS TO GENERAL LEDGER

When your company was first setup, interfacing of the payroll module to General Ledger was specified. To see if the interfacing of payroll to General Ledger is activated or to change the interfacing specification, run the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu. Select the Payroll portion and one of the configuration options will address the interfacing of Payroll to General Ledger. Select “yes” if you want to have transactions reflecting the payroll run automatically sent to General Ledger or select “no” to suppress the posting of transactions to General Ledger.

HOW DO I REVIEW PAYROLL CHECK HISTORY

HOW DO I CREATE W-2 FORMS

Once the last payroll for a calendar year has been posted, the payroll must be “closed-out” by running the menu item “P/R, YEAR-END CLOSEOUT” on the YEAREND menu. When this menu item is executed, a copy of the data necessary to print the W-2 forms is set aside and you can then continue to perform payroll runs in the new year. This W-2 data will remain available until the payroll is again “closed-out” presumably next year.

To review the W-2 data as it currently exists, run the menu item “P/R, PROCESS W-2s” on the YEAREND menu. If additional information is required on the W-2 form, run the menu item “P/R, OTHER REPORTABLE COMPENSATION” on the YEAREND menu which allows the user to enter other information to be printed on the employees W-2 form. All of these menu options can be run as often as desired. The W-2 forms themselves can be printed numerous times, the magnetic media can be created numerous times.

HOW DO I REVIEW 941 DATA

HOW DO I REVIEW WORKMAN’S COMP WAGES

HOW DO I CLOSE OUT THE YEAR

How Do I...

Revenue Distribution

HOW DO I SETUP A REVENUE DISTRIBUTION LEVEL

A “Distribution Level” is a list or owners to receive revenues on a property. Each distribution level is assigned a 2-digit number ranging from 50 thru 99. The DL number is assigned by the user when the Distribution Level is created. Each property can have a maximum of 50 Revenue Distribution Levels but in most instances each property will have one Revenue Distribution Level assigned a DL number of 50-99 (most people assign 50). So each property could have it’s own Revenue Distribution Level 50. Each distribution level can have an unlimited number of owners but the total decimal interest must be exactly 1.00000000.

To create a Revenue Distribution Level, run the menu item “REVENUE DISTRIBUTION LEVEL” on the Application/Master Files menu. See the section on CREATING MASTER FILES - DIVISION OF INTEREST MASTER FILE for an explanation on creating Revenue Distribution Levels.

HOW DO I ENTER REVENUE CHECKS RECEIVED

Revenue checks that are received from purchasers or from other operators are entered by running the menu item “ENTER CASH RECEIPTS” on the Application/Accounts Receivable menu. See the section in Accounts Receivable entitled “HOW DO I RECORD RECEIPT OF A REVENUE CHECK” for an explanation of entering a revenue check.

HOW DO I SET DEFAULT CHECK

MINIMUMS FOR EACH OWNER

When disbursing revenues, the user can control the minimum amount for a revenue check to be written. One option for specifying the minimum suspense level is to specify an amount that will apply to all owners. The other option is to use the default minimum suspense level carried in the ID master file for each owner, in which case each owner can have a different level. The default minimum suspense level is entered into the ID master file by running the MENU ITEM “ID (NAMES & ADDRESSES)” on the Application/Master Files menu. Under the owner section, a data field called “Minimum Check Amount” is where this default minimum suspense level is entered.

HOW DO I HOLD AN OWNER’S REVENUE IN SUSPENSE

If, for any reason, you want to hold the revenues of a particular owner and not disburse them to the owner, the “Pay Code” on the Distribution Level must be set to “Legal Suspense” indicating the owner’s revenues from that property are to be held in “legal suspense”. Once revenues are placed into legal suspense, they will not be paid unless you specifically release them for payment by running the menu item “RELEASE LEGAL SUSPENSE” on the Application/Revenue menu.

Since there is a different distribution level for each property, it is possible to pay an owner for the revenues on one property (set the pay code to Pay) while at the same time holding the same owner’s revenues in legal suspense on a different property (set the pay code to Legal Suspense). To change the pay code on a distribution level run the menu item “REVENUE DISTRIBUTION LEVEL” on the Application/Master Files menu and change the column entitled “PAY CODE” to become “Legal Suspense”. That will cause that owner’s revenues on that property only to be held in legal suspense. If that owner’s revenues on other properties are to be held in legal suspense, the Distribution Levels for those other properties must also be changed in a similar manner.

HOW DO I NET REVENUES AGAINST UNPAID JIB INVOICES

If you want to take an owner’s revenues from a property and automatically apply them against unpaid JIB invoices and write a check to the owner for the difference, the pay code on the Distribution Level must be set to either “Netout Any Property” or “Netout By Property”. Setting the pay code to “Netout By Property” indicates the owner’s revenues on this property are to be used to pay unpaid JIB invoices on this property only. Whereas, setting the pay code to “Netout Any Property” indicates the owner’s revenues on this property are to be used to pay unpaid JIB invoices from any property.

To change the pay code on a distribution level run the menu item “REVENUE DISTRIBUTION LEVEL” on the Application/Master Files menu and change the column entitled “PAY CODE”. If that owner’s revenues on other properties are to be used also to payoff unpaid JIB invoices, the Distribution Levels for those other properties must also be changed in a similar manner.

HOW DO I RELEASE LEGAL SUSPENSE

Once revenues are placed into legal suspense, they will remain there until released for payment by the user. Listings of the revenues presently held in legal suspense can be obtained by running the menu item “PRINT REVENUES HELD IN SUSPENSE” on the Application/Revenue menu and selecting legal suspense to be listed rather than minimum suspense.

To release legal suspense for payment, run the menu item “RELEASE LEGAL SUSPENSE” on the Application/Revenue menu. When running this menu item you must first build a table of who is to get the suspense you intend to release (maybe the revenues are being divided equally between 3 heirs or maybe the revenues are simply being released to the original owner). If you are simply releasing an owner’s revenues for payment to that same owner, your table would indicate the same owner number is to receive 100% of the revenues being released. Whereas, if an owner number “Father” had revenues held in legal suspense and it was determined that his revenues were to be released equally between three children, your table would show the ID number of the 3 children with 2 of them receiving .33333333 of the revenues and the third child receiving .33333334 of the revenues. Once the table is built and you are ready to release the legal suspense using the table, you willl be prompted to enter the ID number of the owner whose legal suspense you want to release. A display will then be produced showing all legal suspense entries presently held for the specified owner and you must mark each and every entry you want to release.

These released legal suspense entries will remain available for the next revenue run. Meanwhile, you can release additional legal suspense that will simply be added to that already released awaiting the next revenue run. Once you have begun a new revenue run (printed Disbursement Details), if you release any additional legal suspense before the revenue run has been completed it will require the complete rerunning of the revenue run in process.

Once the table of owner’s to receive the upcoming releases has been built, then you choose the legal suspense entries to release. If other entries are to be released, modify the table of owners to receive the released legal suspense and release whatever other legal suspense entries you desire to these owners.

HOW DO I SELECT REVENUES TO BE PAID

The first step in the actual writing of revenue checks is to run the menu item “DISTRIBUTE REVENUES” on the Application/Revenue menu. When this menu item is executed, a screen display will be produced which shows all of the new revenue entries from the revenue checks received and you must select the entries you want to process on the next revenue run.

HOW DO I WRITE REVENUE CHECKS

Two different types of revenue checks are available. The most widely used revenue check (referred to as the small check) consists of a 3 ½ “ check beneath a 3 ½” stub and the stub simply says “See Attached Disbursement Detail” which is a separate sheet of 8 ½” x 11” paper on which the check stub information is printed. The other type of revenue check (referred to as the big check) consists of a 3 ½” check beneath a 6 ½” stub and all the check stub information is printed directly on the check stub itself. Either type of check can be ordered for a laser printer. You indicate which type of check you are using by running the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu and in the Revenue Distribution section you can specify your check type.

When you write revenue checks, all of the new revenues you selected for processing plus all minimum suspense plus all legal suspense that has been released is thrown together and is compared to the minimum suspense level specified by the user each time revenue checks are written. If the owner’s revenues are less than that owner’s minimum, all of that owner’s revenues will be held in minimum suspense. If an owner’s revenues do meet or exceed his minimum, the netting of revenues against unpaid JIB invoices will occur and the owner may in fact not receive a check at all (all revenues were netted against expenses).

If you are using the “small” checks, run the menu item “PRINT DISBURSEMENT DETAIL” on the Application/Revenue menu to perform all the previously discussed calculations and netouts and the check stubs (Disbursement Detail) will be printed on single sheet paper. If the disbursement details are correct, proceed to print the actual checks by running the menu item “PRINT REVENUE CHECKS” on the Application/Revenue menu.

If you are using the “big” checks, run the menu item “PRINT REVENUE CHECKS” on the Application/Revenue menu to print the check stubs and the checks themselves (all together on one big check).Regardless of which checks you are using, you will be prompted for the following information when printing the checks:

PROMPT	DESCRIPTION
Process WI (Y,N)	Do you want to process working interest revenues “yes” or “no”. If you respond “no”, all new working interest revenues will be placed into minimum suspense.
Process RI (Y,N)	Do you want to process royalty or override interest revenues “yes” or “no”. If you respond “no”, all new royalty and override interest revenues will be placed into minimum suspense.
First CK Number	Enter the beginning check number
Check Date	Enter the date to be placed on all checks written
Don’t Release Minimum Suspense Beyond month and year	Enter a month and a year and only minimum suspense with a month/year of production equal to or less than the specified month/year will be processed. If the month/year of production exceeds the specified month/year, the minimum suspense will remain in minimum suspense.
Default or Universal Minimum Check Amount	Select “default” to use the minimum suspense level in the ID file for each owner. Select “universal” to enter an amount that will apply to all owners for this run only.
Include All Properties	Select “yes” or “no”. If you select “no”, you must build a list of properties to be processed. All revenues for properties not selected for processing will be placed into minimum suspense.
Print Detail for Owners Held In Minimum Suspense	Select “yes” or “no”.

If the results of your revenue processing are not as desired, you can make any required modifications and rerun the entire revenue process anywhere along the way until the revenue checks are posted by running the “POST REVENUE CHECKS” menu item on the Application/Revenue menu. You can change the Distribution Level, change owner’s minimum suspense level in the ID file, enter more revenue checks, whatever. But once you make any change, you must start again with the “DISTRIBUTE REVENUES” menu item on the Application/Revenue menu.

HOW DO I POST REVENUE CHECKS TO BANK REC

When your company was first setup, interfacing of the revenue module to Bank Reconciliation was specified. To see if the interfacing of revenue to Bank Reconciliation is activated or to change the interfacing specification, run the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu. Select the Revenue portion and one of the configuration options will address the interfacing of Revenue to Bank Reconciliation. Select “yes” if you want to have Revenue checks automatically recorded in the Bank Reconciliation files or select “no” to suppress the posting of Revenue checks to the Bank Reconciliation files.

HOW DO I POST REVENUE CHECKS TO GENERAL LEDGER

When your company was first setup, interfacing of the Revenue Distribution module to General Ledger was specified. To see if the interfacing to General Ledger is activated or to change the interfacing specification, run the menu item “CONFIGURATION MAINTENANCE” on the Utilities menu. Select the Revenue portion and one of the configuration options will address the interfacing to General Ledger. Select “yes” if you want to have transactions reflecting the revenue check run automatically sent to General Ledger or select “no” to suppress the posting of transactions to General Ledger.

HOW DO I VOID A REVENUE CHECK

To void a revenue check, run the menu item “VOID REVENUE CHECKS” on the

Application/Revenue menu. As the revenue checks are written and posted, a history file is maintained with all the information regarding each check. To void a check, you must specify the ID number of the owner whose check you want to void and a list of all that owner’s checks will appear for you to pick the check you want to void. When you choose the check to be voided, you must indicate whether the revenues paid on that check are to be placed back into legal suspense or are to be placed back into minimum suspense. All of the revenues paid on that check will be placed Back into suspense plus all of the JIB invoices netted-out on that check will be placed back into accounts receivable when the checks to be voided are posted when you click the “POST” box on the command line.

HOW DO I RECALL REVENUE CHECK DISBURSEMENT DETAIL

On many occasions, it becomes necessary to see the check stub (Disbursement Detail) from an old check. Run the menu item “RECALL REVENUE CHECK DISBURSEMENTS” on the Application/Revenue menu to view or reprint the check stub from a previously posted revenue check. When running this menu item, you will be prompted for the ID number of the owner and then a display will appear showing all the revenue checks for that owner and you can pick the desired check. The Disbursement Detail from that check will then be printed.

HOW DO I REVIEW AND PRINT OWNER’S 1099 DATA

To review owner’s 1099 data, run the menu item “1099, REVIEW REVENUE DATA” on the YEAREND menu. The actual printing of the revenue 1099’s is accomplished by running the menu item “1099, CREATE 1099 FORMS” on the YEAREND menu.

HOW DO I ALLOCATE REVENUES BETWEEN PROPERTIES

Fifty different “allocation levels” can be created by running the menu item “REVENUE ALLOCATION LEVELS” on the Application/Master Files menu. Each allocation level is assigned a two-digit allocation level number in the range 50-99 by the user when the allocation level is created. An allocation level consists of an unlimited number of property numbers, Distribution levels, and decimals to be used in splitting revenues between properties. Each allocation level must total 1.00000000.

If you have a situation where you are paid one lump sum and you must split that payment between multiple properties based on some pre-determined percentages, use of the allocation level is for you. An example would be a situation where you have 3 wells pumping into a common tank battery and the purchaser picks up the oil from the tank battery and sends payment for the total oil purchased. You must now split the purchaser’s payment into three portions for each of the three properties. Solution … setup an allocation level consisting of the three properties with their respective decimal interests which total 100 %. Then when entering the revenue check in the “ENTER/CHANGE CASH RECEIPTS” menu item on the Application/Accounts Receivable menu, make just one entry on the screen where the revenue detail is entered. This one entry would be for the total check amount and you would enter “ALLOCATE” for the property number and you would enter the 2-digit allocation level number for the DL. When this entry is posted, the one entry would be replaced with three entries totaling the entire check amount.

HOW DO I REVIEW AN OWNER’S

INTEREST IN ALL PROPERTIES

HOW DO I REVIEW REVENUES BEING HELD IN SUSPENSE

You can also run the menu item “REVENUES HELD IN SUSPENSE REPORT” on the Application/Revenue menu to obtain a report showing the detailed entries being held in either legal or minimum suspense for each owner. The user can restrict the owners included on the report.

HOW DO I TRANSFER MINIMUM SUSPENSE

TO LEGAL SUSPENSE

How Do I...

Virtual Filing Cabinet

OGBOOKS comes with a document management system called the Virtual Filing Cabinet. You can think of this as a digital version of an actual physical filing cabinet. Throughout OGBOOKS, there will be “Scan” buttons that will allow you to scan a document and save it in the Virtual Filing Cabinet. Later, these documents can be looked up and found easily.

The Virtual Filing Cabinet requires the use of a TWAIN compatible scanner. We recommend getting a small scanner that sits on your desk, so that you can access it easily. This will make scanning invoices incredibly simple.

To access the Virtual Filing Cabinet directly, go to the Utilities menu and select Virtual Filing Cabinet.

The left side of the screen shows the folders in the Virtual Filing Cabinet. You can click the “New Folder” button to add a new folder. If you want to add a sub-folder to a folder that already exists, first click on the folder, then click “New Folder”. To delete a folder, click on the folder, the click “Delete Folder”.

When a folder is selected from the left, the right side will show all of the files that are currently in the selected folder. Using the buttons above, you can perform several tasks here. The “Scan” button will allow you to scan a new document, and it will be saved in the current folder. The “View” Button will open the document in the default viewer. The “Search” button will bring up two search options. “Search Files” and “Search Comments”. “Search Files” will allow you to search for a file by name. “Search Comments” will allow you to search all files comments for a particular word or phrase. Comments for a file can be added by right clicking on the file. The “New Word” button will create a new Word file in the current directory. The “New Excel” button will create a new Excel file in the current directory. The “New Text” button will create a new .txt file in the current directory. The “Delete File” button will delete the selected file.

Just below the files window, there is a “P” button and a location bar. The “P” button will open the current folder in Windows default folder viewer. Below this there are several buttons which will take you to certain modules. After clicking these buttons, you will be able to lookup a scanned document or scan a new document and associate it with data in the system.

How Do I...

Hardware

OGBOOKS will run on any computer that is capable of running Windows XP or newer. Currently OGBOOKS only runs on Microsoft Windows operating systems. For printing reports, OGBOOKS requires a laser jet printer. For scanning invoices and other documents into the system, OGBOOKS requires a TWAIN compatible scanner. We recommend Fujitsu scanners such as the “Fujitsu FI-7160 Up to 600 dpi USB Duplex Color Image Document Scanner”. Scanners that do not use the TWAIN driver like the Fujitsu ScanSanp scanners are not currently compatible with OGBOOKS.

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Force Install an Update

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Release Legal Suspense

1) Go to the Revenue Distribution menu, select Release Legal Suspense
2) At the top portion, select "CLICK HERE TO ADD"
3) Look up the owner, then click Select All at the bottom
4) Now in the bottom portion, make sure that the pay code is how you want it
5) Click Post at the top

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Change Owner Pay Status

1) Go to the Master Files menu and select ID (Names & Addresses)
2) Find this owner and click on Owner Cross Reference at the top right.
3) On the report, click Change Status for All in the blue font.
4) Now on the Revenue dropdown, select Pay or Netout and click the Change All button next to it.

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Print Revenue Checks Without Selecting Any Revenue

1) Go to the Revenue Distribution menu, select Distribute Revenues
2) Do not select anything, click Continue at the bottom
3) Click Print Disbursement Details
4) Enter the check number and check date
5) For "Minimum Check Amount Is" select "Universal Amounts"
6) Click Continue
7) When the Universal Minimum Revenue Check screen comes up, enter 9999999.99 at the top right box
8) Add a line for this particular owner, make their minimum 0.00
9) Click Continue and make sure the amount matches the original check amount
10) Now just make sure to post this to the same month it was originally posted.

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Void A/P Check

1) Go to the Accounts Payable menu, select Void A/P Checks
2) Select "CLICK HERE TO ADD"
3) Lookup desired vendor, then select the check to void
4) Click Post at the top, and post the voiding
5) This will put the invoices back into Unpaid invoices
6) You can print the checks again by selecting "Select A/P Invoies to Pay"

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Deposit Misc. Income

1) Go to the Accounts Receivable menu, select Enter Cash Receipt
2) Click Add, enter the ID, check #, check amount, and check date
3) Select "Other" for payment type, click Continue
4) Select "CLICK HERE TO ADD" at the bottom
5) Enter negative the check amount and choose an income account (or set up a new income account if you need to)
6) Save and post

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Deposit A Netted Revenue Check

1) Go to the Accounts Receivable menu, select Enter Cash Receipts
2) Click Add, then fill in ID, check #, check amount, and date, click Continue
3) Now, enter the amount that was netted in the "Netted Out $" field near the top right
4) Now add the detail lines and make sure when you are finished the balance is 0.00
5) You can save and post this like you normally do (once the whole deposit is entered)
6) After posting the Netted Out amount will show up as negative on Unpaid Invoices
7) You will need to go to Accounts Payable menu, select New A/P Invoices and add the invoice for the netted out amount (this is an Active invoice, not Prepaid)
8) After posting this invoice, go to the Select A/P Invoices to Pay screen
9) Find the ID and select the line with the netted amount and click the Offsetting button to remove the offsetting lines.

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Enter Cash Receipt for Revenue Without Detail

1) Go to the Accounts Receivable menu, select Enter Cash Receipts
2) Click Add, then fill in ID, check #, check amount, and date, select "Other" for payment type, click Continue
3) Select "CLICK HERE TO ADD" at the bottom
4) Enter the amount as negative here, then input your Revenues Payable account for the G/L Acct
5) You can save and post this like you normally do (once the whole deposit is entered)

Now when you receive the detail:
1) Go to the Revenue Distribution menu, select Enter/Change Revenue Entries
2) Click Add, fill in the ID, check #, check date, and date received, click Continue
3) Add the detail on this screen and then save

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Restore From a Backup

1) Go to the Administration menu, select Backup / Restore Data
2) Click Restore Data at the top
3) Find the backup you are looking for (if you click the Data column header, then click it a second time it will sort with newest backup on top)
4) Select the desired backup, then click Perform the Restore at the bottom
5) Click Yes, then click Yes to All
6) When it finishes it may show 3 errors, you can ignore these. Click close, click Ok.

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Download a Cloud Backup

1) Go to the Administration menu, select Backup / Restore Data
2) Click Cloud Backups at the top left
3) It will connect to ogbooks.com and bring up a list of your stored cloud backups
4) In the window, select the backup that you would like to download and click Download Selected Backup
5) Once it finishes, click the X in the blank window and you can restore from this backup now.

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Create a Backup

1) Go to the Administration menu, select Backup / Restore Data
2) Click Backup Data at the top
3) Select your company and click Perform the Backup at the bottom
4) Click Begin Backup

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Turn Cloud Backups On/Off

1) Go to the Administration menu, select Set System Default Values
2) In the middle column find "Upload Backups" and set it to YES

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Post Pending Transactions to the General Ledger

1) Go to the General Ledger menu
2) Select Print/Post Pending Transactions
3) Select the month then say YES to "POST TO BOOKS IF ALL IS OK"
4) Click Continue
5) Go to the last page and confirm that there are no errors listed
6) Repeat for other months
7) The "Print/Post Pending Transactions" will be greyed out if there are no more entries to post.

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Unpost a General Ledger Journal Entry

1) Go to the General Ledger menu
2) Click Unpost G/L Transactions
3) Select the month that the entry is posted to
4) Select the entry # that you would like to unpost (if there are multiple lines for the same entry, you only have to select one of them).
5) Click Continue

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Validate Database

1) Go to the Administration menu, select Validate Database
2) Select your company
3) Click Continue

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Void Payroll Check

1) Go to the Payroll menu, select Void Payroll Checks
2) Click "CLICK HERE TO ADD" at the bottom
3) Input the employee #, then select the desired check
4) Click Post at the top, answer Yes
5) Select the month and year to post

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Enter Credit Card Transactions

1) Enter the invoice or invoices that are on the credit card statement as "Active" invoices.
2) Put all invoices that are for the same credit card statement on the same batch#.
3) When you are ready to post these invoices, select your credit card batch on the posting screen, and then select the checkbox that says "This batch is a Credit Card"
4) Select the month to post to, then click Continue
5) The next window will be where you enter the credit card vendor (Capital One, Chase, etc.).
6) If you will pay this by check, leave the type as Active, but if you pay online, you can select this as Prepaid and give it check# ECHECK.
7) Click Continue to finish.

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Enable an Invoice for Netting Out

1) Go to the Utilities menu, select Initially Load Data Files
2) Select Load A/R Invoices, click Continue
3) Enter the ID#
4) Look at the column labeled Netout
5) Change from NO to YES if you want it to be enabled for netout

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Set an Owner to Always Net Credits On JIB

1) From the Applications menu, select Master Files, then ID (Names & Addresses)
2) Click Find and lookup the ID#
3) Near the bottom, there are two options regarding Credit Invoices
4) Change the option that says "Offset credit & debit JIB's" to "Yes, Any Property"
5) Change the option that says "Always Refund Credit Invoices" to "YES"

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Set Up Preprinted Checks with a Check On Top

1) Go to the Administration menu and select Check and Forms Alignment
2) Now you will need to change the columns for each check type (A/P, Rev, P/R, L/R) to show 22, 2, 10, 8, 11, 42 from top to bottom
3) Select "Check on Top" at the top left of the screen
4) Now click the Menu button at the top right
5) Now you can run a test check on blank paper and hold it up to a check and see how it lines up. Let me know if it doesn't look right.

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Mark an Invoice as Paid Electronically

1) Go to the Applications menu, select Accounts Payable, select Remove A/P Invoices
2) Click Add, look up the vendor, select the invoice
3) Answer YES for "Was Invoice Paid By Manual Check"
4) Fill in the date, ECHECK for check#, and the bank account
5) Click Continue, go back to the menu, select Post A/P Invoices Being Removed

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Initially Load A/R Balances

1) Go to the Utilites menu, select Initially Load Data Files
2) Select Load Open A/R + Balance Forward (the last option), click Continue
3) Fill in the data here (right click to look up ID# and G/L Account [this is the accounts receivable account and will be the same for each line], you can leave property blank), it is probably best to give them each a unique invoice #, something like 202301-01 for the first one, 202301-02, 202301-03, etc...
4) Press the down arrow key on your keyboard and add the next balance
5) Click Save at the top and you are done.

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Move Unbilled Expense to a Different Property

1) From the Applications menu, select General Ledger, then select Enter/Change G/L Journal Entry
2) Click Add at the top, then click Continue
3) Enter a batch # to use when posting (it can be anything)
4) At the bottom click CLICK HERE TO ADD
5) In the table, enter the description, negative for the amount, the original property and DL, the billable account, and the vendor for ID# and invoice # for Reference
6) At the bottom click CLICK HERE TO ADD
7) In the table, enter the description, positive for the amount, the correct property and DL, the billable account, and the vendor for ID# and invoices # for Reference
8) Click Save at the top and then Menu
9) Click Post G/L Journal Entries, then select your batch #, and choose the month and year to post
10) Now go to the Joint Interest Billing menu and select Review Unbilled Expenses
11) Find the original incorrect property, select the negative line, then click Offsetting at the top (it should remove the negative and positive offsetting lines)

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Void and Reissue a Revenue Check

1) From the Applications menu, select Revenue Distribution, then select Void Revenue Checks
2) Click on CLICK HERE TO ADD at the bottom
3) Look up the owner and select the check to void
4) Click Post at the top, select the year and month to post to
5) Make sure that Minimum Suspense is selected for the "Place In" option and click Continue

Now you can reprint the check by doing the following:

1) Go to the Revenue Distribution menu, select Distribute Revenues
2) Do not select anything, click Continue at the bottom
3) Click Print Disbursement Details
4) Enter the check number and check date
5) For "Minimum Check Amount Is" select "Universal Amounts"
6) Click Continue
7) When the Universal Minimum Revenue Check screen comes up, enter 9999999.99 at the top right box
8) Add a line for this particular owner in the table, make their minimum 0.00
9) Click Continue and make sure the amount matches the original check amount
10) Now you can print the actual check and post it.

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New Company Setup

Set up IDs

1) Go to the Applications menu, select Master Files, then select ID (Names & Addresses)
2) Here is where you will set up your vendors, owners, and purchasers
3) click Add at the top to add a new ID, then fill in address and other info
4) Select if the ID is a vendor, owner, or purchase (an ID can be more than one, or even none
5) You are given more options depending on the ID type that you can fill in

Set up wells (properties):

1) Go to the Applications menu, select Master Files, then select Properties
2) This is where you will set up your oil/gas wells and any other properties
3) Click Add at the top and give it a property # (Any # is fine as long as it is unique, so set up the property #s however you like).
4) You will want to set up a property Name, County, and State as well as check the Active checkbox at the top right
5) All other data is for informational purposes, and can be left blank and filled in later.

Set up JIB Distribution Levels (decks)

1) Go to the Applications menu, select Master Files, then select JIB Distribution Levels
2) This is where you will set up your JIB Distribution Levels (decks) for use with any expenses on the well
3) You will set this up even for wells that you are 100% WI owner, or wells that you are not the operator of
4) Click Add at the top to add a new one, enter the property and click Continue
5) Click on CLICK HERE TO ADD at the bottom to add a line for each working interest owner
6) Enter each owners decimal, and answer YES on the FORCE column for only 1 owner (this is used for any rounding needed)
7) Save and repeat for each well that you have
8) See note below for non-operated wells

Set up Revenue Distribution Levels (decks)

1) Go to the Applications menu, select Master Files, then select Revenue Distribution Levels
2) This is where you will set up your Revenue Distribution Levels (decks) for use with any income on the well
3) You will set this up even for wells that you are 100% NRI owner, or wells that you are not the operator of
4) Click Add at the top to add a new one, enter the property and click Continue
5) Click on CLICK HERE TO ADD at the bottom to add a line for each interest owner (add a line, enter owner infor, repeat)
6) Enter each owners decimal, interest type, whether they are liable to pay severance taxes and marketing fees, their pay code (Pay, Netout, Legal Suspense, etc.), and only 1 owner can have YES for FORCE.
7) Save and repeat this for each well you have

*****note for non-operated wells or wells that a purchaser pays the royalty interests for you:
1) You will need to set up an owner on the distribution level with ID# OUTSID that has the remaining decimal to make the DL add up to 1.000000. The system will know that owner OUTSID is not to receive any invoice or check and it will split the expense/income with the other owners.

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Turn On High DPI Setting

1) Close OGBOOKS
2) Right click on the OGBOOKS shortcut
3) Click Properties
4) Click on the Compatibility tab
5) Click the button that says "Change high DPI settings" near the bottom
6) At the bottom of this page, select the checkbox that says "Override high DPI scaling behavior" so that it is checked.
7) Click OK, then click Apply, then click OK
8) Now reopen OGBOOKS

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Increase Font Size

1) Login as Admin
2) Go to the Aministration menu, select Goto Command Mode
3) Click the "Font Size" button
4) Change the font size number. 0 is the default size. A positive number will be bigger, negative number will be smaller.
5) Click on Change and you should see the text get bigger
6) Adjust this until you think it is good, then click Close and Exit OGBOOKS completely and reopen

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Setup Custom Checks

1) Go to the Administration menu, select Check and Forms Alignment
2) At the top left select Custom for Check Type
3) Now, click the button that says Install MICR Font
4) After it install, close and reopen OGBOOKS
5) Now go to Utilities and select Configuration Maintenance, then select Bank Reconciliation
6) You will need to set up you bank account information here
7) The first column is the OGBOOKS account #, Nextnum means the next check number to use, Account is your bank account number, Routing is your bank's routing number, Bank1,2,and 3 are three lines of bank information that typically show up on a check (on mine the first line is the bank name, the second line is the bank website, and the thrid line is a number like this "32-1432-1110").
8) Now go back to Administration->Check and Forms Alignment
9) Under each check category (A/P, Rev, and P/R) click the Test button to print a check to view the format (either on blank paper to hold up to the check or on an actual check)
10) You can click the Setup button to adjust the layout if you need to.

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Refund JIB Credit

1) Go to Applications menu, select Accounts Payable, select Refund JIB Credit
2) On this screen, type the owner ID# in the top search box and click Filter by ID
3) Find the credit that you want to refund, and click the To AP column (this will change the N to Y (You can select positive and negative amounts, as long as the total is still negative).
4) Repeat this for however many credits you need to refund
5) After selecting the credits, you can click Show Selected to review
6) Now click POST and the bottom and post the the appropriate month
7) After posting, go to Select A/P Invoices to Pay and you will see the owners' refunds here waiting to be paid. Select/Print/Post them like any other AP Invoice.

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Transfer Open A/R to New ID#

1) Go to the Accounts Receivable menu, select Enter Miscellaneous A/R Invoices
2) Click Add at the top, enter the old company ID
3) You can leave Regarding, Property, Batch #, and Explanation blank
4) At the bottom, click on "CLICK HERE TO ADD"
5) In the table, enter the total open AR for the old company, but as negative
6) Choose a G/L account to use, any account is fine since it will be an in and out entry, I would choose a Liability account probably.
7) Enter a description like "Transferred balance" or something
8) Click Save at the top, then repeat steps 2 - 7, but use the new company ID, and the amount as positive.
9) Go back to the menu, click Print Miscellaneous A/R Invoices, select the blank batch# and Continue (you can close the report unless you want to actually print it)
10) Now go to Post Miscellaneous A/R Invoices and choose the month and year to post it.

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Advance Bill / Charge to Advances

1) Set up a JIB Distribution Level where the Billout / Advance column says "Charge To Advance" for each owner. If you already have a DL set up normally, just click Add, enter the property #, enter the DL# to be used for the afe payments, then select YES to duplicate existing DL, and enter the property and DL that are already set up. Now just change the Billout / Advance column to "Charge To Advance"

2) You need to input Advance Billing Requests for the owners. Go to the Joint Interest Billing menu and select Enter Advance Billing Requests. Here, enter the property skip the DL#, then input the Owner #. You need to enter the JIB class (you can right click to see a listing of options). You might want to set up a new JIB class for Advance Billing (or Cash Call or whatever you would call it) if you don't already have one. Give a description like Cash Call or Advance Billing Request and input the amount for that owner. Now click Continue and repeat for each working interest owner in the well.

3) The advance billing requests will now be in the Unbilled Expenses. You need to now process those through the JIB system. From the Joint Interest Billing menu, click Select Charges To Bill. At the top right, select YES for Advance Billings, NO for Operating Expenses, and NO for AFE Expenses. Click Continue. Now run Print JIB Control Reports, then Print JIB Invoices, then Post JIB Invoices just like it was a regular JIB run. Now each owner will have an invoice for their AFE cash call amount.

4) When you receive their advanced payments, you enter them as a JIB payment cash receipt. You can say NO to the "apply to oldest invoice" option and then select the advance billing invoice in the table to apply it.

5) Now when you start receiving expenses toward the AFE, make sure when you enter them in AP or General Ledger (or anywhere else) that you use the DL# that was created in step 1, and that you input the AFE# so that it goes to the AFE.

Cheat Sheets

Setup Financial Statements

1) Go to the General Ledger menu, select Schedule Maintenance
2) Click Add at the top
3) For a P&L statement, select "Create Standard Income Statement"
4) Input a schedule # like P&L and click Continue
5) Save and repeat if you need a balance sheet as well
6) These reports can be customized to the way you want them, but the standard is a good start

Cheat Sheets

Run Financial Statements

1) Go to the General Ledger menu, select Print Financial Reports
2) Select the desired report and which year/month to run it for
3) Choose whether or not to compare to last year
4) Click Continue

Cheat Sheets

Transfer Minimum Suspense to Legal Suspense

1) From the Applications menu, go to the Revenue Distribution menu, select Xfer Minimum to Legal Suspense
2) At the bottom, click "CLICK HERE TO ADD"
3) Enter the owner # and click "Select All" at the bottom
4) The top portion will list the owner with a decimal of 1.0000000, leave this as is and click Post at the top
5) Click Yes to the warning message, then select the month and year to post to, click Continue

Cheat Sheets

Transfer Ownership

You may want to create a backup before starting this process in case something goes wrong.

First it is best to put the current owner in Pay status (unless you want the new owner(s) to be in suspense also):
1) Go to the Master Files menu and select ID (Names & Addresses)
2) Find this owner and click on Owner Cross Reference at the top right.
3) On the report, click Change Status for All in the blue font.
4) Now on the Revenue dropdown, select Pay or Netout and click the Change All button next to it.

Next, you need to transfer the ownership:
1) Go to the Utilities menu, select Ownership Transfer
2) Enter the ID # of the current owner
3) In the top table, add a line for each new owner
4) The decimal column is how the original interest will be divided, it must equal 100%
5) In the bottom list, select each property that needs to be transferred (or click Select All at the bottom)
6) Click Perform The Transfer at the top

Finally, you need to release any amounts currently in legal suspense of the old ID:
1) Go to the Applications menu, select Revenue Distribution, select Release Legal Suspense
2) In the top portion, click "CLICK HERE TO ADD" and input the original owner ID
3) Click Select All at the bottom, or select individual lines and click Continue
4) Now in the bottom table, overwrite the original owner ID with the new owner
5) Add another owner by clicking the "CLICK HERE TO ADD" button at the bottom
6) This bottom table will look just like the table from the ownership transfer screen
7) After adding all the owners to transfer to, click the Post button at the top and Post the transfer

Cheat Sheets

Change Check # for an A/P Check

1) From the Applications menu, select Bank Reconciliation, then select Add, Change, List Checks/Deposits
2) Enter you bank account and press Enter
3) Click Find and pull up the check # you want to change
4) On the page for the check, double click on the Check # and it will ask if you want to change the check #, say YES
5) Now just type in the check number preceded with zeros if it isn't 6 digits long (ex: if check number is 1001, enter 001001)
6) Click Save and go back to the menu
7) Now go to the Year End menu, select 1099, Review AP Data, then input the year that the check is dated, click Continue
8) Click Find at the top and look up the vendor
9) On the vendor's page, find the check # you want to change, and change it, click Save and go back to the menu.

Doing this will change the check # on the vendor history and the checkbook listing. However, the check # is likely still listed incorrectly on the general ledger. To change it on the general ledger, do the following:

1) Find the JE# that the check was posted to (go to the General Ledger menu and either find it in the Print/Post Pending Transactions or in the Detailed Ledger report depending on whether it has been posted already or not).
2) Go to the General Ledger menu, select Review Journal Entries, enter the JE# and press Enter
3) Now just change the check # in the description and save.