Section 2 - Master Files Introduction

 

A. General Information 
B. Chart of Accounts 
    1. General 
    2. Data Fields 
C. Company Identification Masters 
    1. General 
    2. Data Fields 
D. Name and Address Masters
    1. General 
    2. Data Fields 
E. Lease Masters
    1. General 
    2. Lease Number Considerations 
    3. Data Fields 
F. State and County Masters 
    1. General 
    2. Data Fields 
G. Field Masters 
    1. General 
    2. Data Fields 
H. Control Records 
    1. General 
    2. Source Codes and Descriptions 
    3. System Generated Batch Number Descriptions
    4. Printer and Date Defaults
    5. Options 
    6. Operating Company Identification
    7. Accounts Receivable Account Numbers 
    8. Accounts Payable Account Numbers 
    9. Cash Account Numbers 
    10. Name and Address Primary Accounts 
    11. Lease Primary Account Numbers 
    12. Net Amount Primary Accounts 
    13. Gross Amount Primary Accounts 
    14. AFE Number Primary Account 
    15. AFE Description By Type 
I. Prerequisite Applications 

A. General Information

 

The Integrated Oil and Gas System uses a data base concept that allows most information to be entered once and to be used by multiple applications. The Master File Application contains programs and reporting procedures to create and maintain master file records that are common to more than one other application in the system. The programs to maintain files that are not common to multiple applications are included in the applications that use the files.

 

The following common records are maintained by the Master File Application:

 

         Chart of Accounts

         Company Identification Masters

         Name and Address Masters

         Lease Masters

         State and County Masters

         Field Masters

         Control Records

         Prospect Masters

         Region and Geological

         Currency Conversion Table

 

All of the above records are maintained in a single physical file referred to as the Master File; however, each record type is processed separately.

 

Control records are used to customize the system to the individual users requirements. These records contain information such as valid source codes and printer and date options. The records also identify general ledger accounts that have unique specifications such as requiring a valid lease number with input transactions in order to maintain subsidiary ledgers.

 

Master File reports may be printed for each record type and lease and name and address labels may also be printed.

 


B. Chart of Accounts

 

1. General

 

There is a single chart of accounts in the system that is shared by all companies. A record is set up in the Master File for each general ledger account and contains the account number, description and other information.

 

The account number is seven digits consisting of a three digit primary and a four digit sub-account number. The user may assign numbers as desired as long as related sub-accounts are grouped together by the primary number.

 

The trial balance is printed in account number sequence and heading lines and sub-totals may be specified by using asterisks in the account number.

 

For example :

 

ACCOUNT DESCRIPTION

 

1**-**** --- Assets ---

 

110-**** --- Cash ---

110-11** Banks

110-1110 First National Bank

110-1120 Second National Bank

111-1200 Petty Cash

 

120-**** --- Accounts Receivable ---

120-1100 A\R - Investors

120-1110 A\R - Employees

120-1200 A\R - Others

 

In the above example, account 1**-**** is a description line for ASSETS but does not produce a sub-total. Accounts 100-**** Cash, 110-11** Banks and 120-**** are both description and sub-total lines.

 

Sub-totals may be produced for primary accounts and the first two digits of the sub-account. In the above example, a sub-total for the primary 110 accounts and a sub-total of accounts 110-1110 and 110-1120 would be printed. A sub-total of the 120 primary accounts would also be printed based on the 120-**** description and sub-total account number.

 

It should be noted that the example applies to printing of descriptions and sub-totals on the trial balance and other detail reports, but does not apply to profit and loss statements and balance sheets. The sequence, descriptions, spacing and totals for P&L and balance sheets are determined by financial control records that are explained in the General Ledger Application documentation.

 

In assigning account numbers, it is important to assign separate primary numbers for accounts that have special reporting or processing requirements. For example, certain primary accounts may be designated as billable by control records and any entry transactions that use billable general ledger primary account numbers must include valid lease numbers for Joint Interest Billing. This means that all sub-accounts for a billable primary number are considered billable. The control records that may specify primary account numbers are :

 

         Billable Primary Accounts

         Gross Amount Primary Accounts

         Net Amount Primary Accounts

         Prospect Primary Accounts

         Lease Number Primary Accounts

         Name and Address Primary Accounts

         Drilling Primary Accounts

 

Each general ledger account number record may contain a six character category code to control account selection and accumulation by the Revenue Application. The first three characters may be variable and control account selection. The last three characters are defined by the system and specify under which report heading amounts are accumulated.

The first three characters are user defined; however, many companies elect to use the following codes:

 

Positions Code and Explanation

 

1st position N Non producing

      P Producing

 

2nd & 3rd        WI Working interest

positions     RI  Royalty interest

 MI Mineral interest

  PP Production payment

 NP Net profit interest

 

The first three characters may be used to select the general ledger accounts that are selected to print lease payout and other reports. For example, producing working interest (PWI) may be entered and only the accounts coded with PWI would be included on the report.

 

The last three characters of the category code determine the report heading under which the account will be accumulated. The standard codes are:

 

 

Positions  Code Explanation
Last 3 Positions OIL
GAS  
PLT
OTX 
GTX
PTX
PXT
COM 
DHY  
HDL
MSC 
STC
LHC
IDC
EQP
DHC
LOE
DPL
DPR
Oil income
Gas income
Plant products income
Oil production tax
Gas production tax
Plant products tax
Plant products tax 
Compression Charges
Dehydration Charges
Handling Charges
Miscellaneous Charges 
Severance Tax Reimbursement
Leasehold costs
Intangible costs
Equipment or tangibles
Dry hole cost
Lease operating expense
Accumulated Depletion
Depreciation

             

The six character code may be set up for groups of accounts or by individual account. Groups are specified by entering a category code in an account description record - a record that contains a primary account and four asterisks. For example, if 401**** is the description record for the lease operating expense accounts and PWILOE is entered in the category code field of the record, all 401 sub-accounts are accumulated as producing working interest-lease operating expense unless a different category code is set up in a specific 401 sub-account record.

 

The system uses the category code from the sub-account record if one has been set up. If a category code is not set up for the sub-account, the system uses the code from the description record, i.e., the account with the same primary account and four asterisks in the sub-account field. If a category code is not set up in either the sub-account or description account record, any amount in the account will not be reported.

 


The Revenue Application requires category codes for:

 

         Gross and Net Payout Reports and other revenue reports

         Calculation of 90 Per Cent NIL

         The X26B FASTAX Report

 

 

2. Data Fields

 

 

FIELD EXPLANATION

 

 

GENERAL LEDGER ACCOUNT # - The seven digit account number:

XXX three digit primary account

XXXX four digit sub-account

Asterisks may be used in the account number field for description lines and to control trial balance sub-totals. Sub-Total Control Asterisks :100-**** - A sub-total will print for the 100 primary account. 100-10** - A sub-total will print for 100-1000 thru 100-1099 sub-accounts.

 

DESCRIPTION - The 24 character account description that prints on detail reports.

 

P&L CODE - A 5 digit P&L and balance sheet sequence number that controls the format of financial statements. This number references the financial statement heading record that controls financial statement formats.

 

COMMENTS - A 60 character comment field that may be used for information about an account or instructions to a coding clerk. The comment prints on the Chart of Accounts listing.

 

CATEGORY CODE - The six character field used to group accounts for lease payout reporting and other reports.

 

1st position N Non producing

P Producing

 

2nd & 3nd WI Working interest

positions RI Royalty interest

MI Mineral interest

PP Production payment

NP Net profit interest

 

Last 3 positions OIL Oil income

GAS Gas income

PLT Plant products income

OTX Oil production tax

GTX Gas production tax

PTX Plant products tax

WPT Windfall profits tax

COM Compression Charges

DHY Dehydration Charges

HDL Handling Charges

MSC Miscellaneous Charges

STR Severance Tax Reimbursement

LHC Leasehold costs

IDC Intangible costs

EQP Equipment or tangibles

DHC Dry hole cost

LOE Lease operating expense

DPL Accumulated Depletion

DPR Depreciation

 


C. Company Identification Masters

 

1. General

 

At least one company ID record is required for each company that is to be processed by the system. The record contains the company ID number, name and other information such as the first month of the fiscal year.

 

The size and complexity of the user's organization will determine the number of companies to be set up. The user also has the option of subdividing a company into division and branches. If divisions and branches are used, selected reports may be prepared at the branch level and consolidated for division and overall company reporting.

 

The company ID number contains the following fields :

 

Field Size

 

Company 2 digits

Division 2 digits

Branch 3 digits

 

An example of the records required for a company with two divisions (one division has no branches, the other division has two branches) follows :

 

Company Division Branch Explanation

 

10 00 000 Company               Always required

10 10 000 Division Only required if

10 20 000 Division              posting to the

10 20 010 Branch 1 division/branch

10 20 020 Branch 2 level.

 

In the above example, the 10-20-000 division record would not be required if all division 20 transactions are processed against branch records.

 

In the standard system, the following general ledger accounts apply only to the overall company ID number (10-00-000 in the example).

 

         Cash

         Accounts Payable

         Accounts Receivable

         Oil and Gas Revenue

 

The reason for this restriction is that many users only maintain cash, payables, receivables and oil and gas revenue at the overall company level. The system may be customized to allow all general ledger accounts to be used at all levels company, division or branch.

 

Company 01 Considerations :

 

A company 01 (01-00-000) record should always be set up since the company 01 name is used for common Master File listings. For example, the company 01 name is used in the heading of name and address listings and chart of accounts listings. The automatic use of the company 01 name applies only to listings of master files that may be used by multiple companies. The specific company name, for example company 10's name, is used for reports such as a trial balance.

 

Affiliated Company Considerations:

 

The system will automatically create joint interest billing and revenue entries for affiliated entities. A company ID record must be set up for the affiliated entity and the company ID number must be set up in the affiliated entity's name and address record. The Joint Interest Billing and Revenue Applications generate inter-company accounting entries if an affiliated company ID is in the name and address record. Partnership books may also be maintained using this approach. For example, assume a corporation that is controlled by a partnership. In this case company 01 would be set up for the corporation which is the operating company. The partnership would be set up as affiliated company 02. Company 01 would joint interest bill and distribute revenue to company 02 and any non-affiliated interests.

 

Consolidation Considerations:

 

Trial balance consolidations are requested by a terminal operator entering the beginning and ending Company ID's. Therefore, company ID's should be assigned in consolidation sequence.

 

2. Data Fields

 

FIELD EXPLANATION

 

COMPANY ID - The seven digit company identification :

Company 2 digits

Division 2 digits

Branch or Dept. 3 digits

 

NAME - The 28 character company name.

 

NAME AND ADDRESS # - The seven digit number that identifies the company's name and address record. In most cases, a name and address record will be set up using the company ID number for the name and address number.

 

BEGINNING MONTH OF FISCAL YEAR - The two digit beginning month of the company's fiscal year. For example, August = 08, January = 01.

 

TYPE OF ENTITY - The one character entity code as defined below:

I = Individual, P = Partnership, C = Corporation

F = Fiduciary, T = Trust

 

DATE ORIGINATED - The Origination date in "MMDDYY" format.

 

TAX BASIS ACCOUNTING METHOD - The one character code as defined below:

A = Accrual, C = Cash, O = Other

 

NET INCOME - The seven digit equity general ledger number that net income is to be posted to when the books are closed at year-end. It should be styled as "Prior Years Income".

 

OIL & GAS ACCOUNTING METHOD - The two character code as defined below:

FC = Full Cost, SE = Successful Efforts

 

PAYROLL GL# - The wage general ledger account number if the company does payroll.

 

CO/DV/BR TO CHARGE PAYROLL EXPENSE - The company ID number to be charged for payroll wages if the company does payroll.

 


D. Name and Address Masters

 

1. General

 

There is a single name and address file that is shared by all applications. A single record may be set up for each entity with which business is transacted. Each record contains a number to identify the entity, the name and address, telephone number and other information.

 

The name and address number is seven digits and is normally assigned in alphabetic sequence by name. The system contains an alpha lookup feature that may be used to automatically assign new numbers in alphabetic sequence.

 

The standard name and address contains eight possible lines:

 

Line 1 Name

Line 2 Additional Name 1

Line 3 Additional Name 2

Line 4 Additional Name 3

Line 6 Care of Name or Address

Line 7 Address

Line 8 City, State, Zip

 

The additional name lines are available for printing in any application, although they are used more in Revenue and Lease Records Application.

 

The record also contains fields for depository charges for delay rental checks, social security number or federal identification number for W2's and 1099's and an affiliated company number.

 

The affiliated company number is used by the Joint Interest Billing and Revenue Applications to automatically generate accounting entries for the affiliated entities that are set up in the system.

 

2. Data Fields

 

FIELD EXPLANATION

 

NAME & ADDRESS # - The seven digit name and address number that identifies the entity.

 

NAME - The 24 character name of the entity. Up to four additional name lines may be used for the Lease Record Application reports

 

CARE OF - The 22 character care of name. The field may also be used for addresses that require more than one line.

 

ADDRESS - The 19 character address.

 

CITY - The 11 character city.

 

STATE - The two character state abbreviation.

 

ZIP - The 10 digit zip code.

 

PHONE # - The telephone number:

Area Code 3 digit

Phone No. 7 digits

Extension 3 digits

 

INSURANCE DATE - Expiration date for insurance certificates.

 

DEPOSITORY BANK CHARGE - If this is a depository bank for delay rental or shut-in royalty

checks produced by the Lease Record application, the bank deposit charge is entered. The amount will be automatically added to the rental check amount by the Lease Record Application.

 

SOCIAL SECURITY OR FEDERAL ID # - The social security or federal ID number for W2's or 1099's. Federal ID numbers are entered with a minus sign (field -).

 

AFFILIATED CO/DV/BR - If this is an affiliated entity, the company ID is set up in this field.

The Joint Interest Billing and Revenue Applications automatically generate accounting entries for affiliated entities.

 

E. Lease Masters

 

1. General

 

Lease master records are set up for all leases and each record contains a lease number, lease name, operator identification, location of the lease and other information. The lease master common data is used by multiple applications; however, for maximum system flexibility, investor working interests and revenue interests are maintained in separate files. The Joint Interest Billing Application maintains records containing investor identification and associated working interests in the Joint Interest Billing File. The Revenue Application maintains the revenue interest and owner identification in the Division of Interest File.

 

The three records - lease master, joint interest billing and division of interest are identified and associated by lease number. The lease master which contains the general or common lease data and must be set up before a joint interest billing or division of interest record is set up.

 

The accounting data entry transactions require a lease number to be entered for selected general ledger accounts in order to accumulate revenue and expense by lease. Control records are used to specify general ledger accounts that require a lease number. If an account is specified as billable in a control record, there must be a lease master and a joint interest billing record for the lease. The Revenue Application requires both a lease master and division of interest record to exist before revenue may be posted.

 

2. Lease Number Considerations

 

The lease number is seven characters and is sub-divided into a five character primary lease number and a two character suffix. The primary number identifies a specific lease and the suffix identifies sub-divisions within the lease; i.e., the suffix may identify wells within the lease. For example, the following numbering might be used for a lease with five wells.

 

Lease #

 

PRIMARY SUFFIX

 

12340 00 Base Lease Number

12340 01 Well 1

12340 02 Well 2

12340 03 Well 3

12340 04 Well 4

12340 05 Well 5

 

For the above example one lease master record containing the base lease number 1234000 must be set up in the Master File. Additional master records may be set up for the wells; however, they are not normally required since the base lease information applies to all wells on the lease.

 

If all wells on the lease have the same working and revenue interest, one set of working interest records would be set up using the base lease number in the Joint Interest Billing Application and one set of division of interest records would be set up using the base lease number in the Revenue Application.

Note: The working interest and revenue interest may be different; however, the working interest must be the same for all wells and the revenue interest the same for all wells if only one set of working and revenue interest records are used.


 

If expenditures are to be reported by well, the lease number which includes a well identification suffix must be entered as part of the entry transactions that post charges to the lease. For example, to post expenditures for well 02, lease 1234002 is entered along with the general ledger account and amount.

 

If the user does not wish to report expenditures at the well level, the base lease number 1234000 would be entered for expenditure for all five wells.

 

If working interests are not the same for all wells on the lease, additional joint interest records must be set up. If the working interest for well 3 was different from well 1, 2, 4, and 5, an additional set of joint interest records would be set up using 1234003 as the lease number.

 

In some cases multiple sets of joint interest records must be set up for the same well. An example is when before and after casing point interests are different. Assume a lease with three wells with different before and after working interests; however, the before interest is the same for all wells and the after casing point interest is the same for all wells. An example of the numbering might be:

 

Lease #

 

PRIMARY SUFFIX

 

12350 00 Base Lease Number

12350 B0 Base Before Casing Point

12350 A0 Base After Casing Point

12350 B1 Well 1 Before Casing Point

12350 B2 Well 2 Before Casing Point

12350 B3 Well 3 Before Casing Point

12350 A1 Well 1 After Casing Point

12350 A2 Well 2 After Casing Point

12350 A3 Well 3 After Casing Point

 

Records for the base lease 1235000 must be set up in the Master and Joint Interest Billing Files. Two additional sets of records would be set up for the before and after casing point working interests in the Joint Interest Billing Application, 12350B0 for the before and 12350A0 for the after casing point interests.

 

To report charges by well, the primary lease and a well suffix must be entered as part of the input transaction that records charges to the lease. For example, to post before casing point expenditures for well 3, Lease 12350B3 is entered with the general ledger account and amount. To bill investors for their share, the Joint Interest Billing Application would use the working interest from the 12350B0 joint interest records.

 

The Joint Interest Billing Application determines the investor working interests from the lease number entered for the expenditure in the following manner:

 

a.        The full seven character lease number (lease number with well suffix) is used to find matching joint interest records. If an exact match occurs, the working interests from the matching records are used.

 

b.       If an exact match is not found, a zero is moved to the seventh position of the entered lease and the new number is used to match against the records in the Joint Interest Billing File. If a match occurs, the working interests from the matching records are used.

 

c.        If a match does not occur in 1 or 2 above, the working interests from the base lease (suffix 00) are used.

 

This procedure is called the "Three Tier Lease Lookup"

 

In the example, expenditures were posted for Lease 12350B3. A match would not occur on the full seven character lease since a 12350B3 lease was not set up in the Joint Interest File. A match would occur when a zero was moved to the last position of the expenditure lease since 12350B0 is set up in the Joint Interest File.

 

Summary :

 

1.        The lease number is seven characters. The first five characters sub-divisions within the lease.

 

2.        A base lease number record, a lease record with zeros for the suffix, must be set up in the master file for all leases.

 

3.        If the Joint Interest Billing Application is installed, joint interest records must be set up for the investors using the base lease number. Additional records must be set up for wells if working interests are not the same.

 

4.        If the Revenue Application is installed, division of interest records must be set up for the owners using the base lease number.

 


3. Data Fields

 

FIELD EXPLANATION

 

LEASE # - The seven character lease number sub-divided into a five character primary or base lease number and a two character suffix. The base number identifies a specific lease and the suffix identifies sub-divisions within the lease such as wells.

 

LEASE NAME - The 24 character lease name.

 

STATE CODE - The two character state code.

 

COUNTY CODE - The three digit county code.

 

OPERATOR # - The seven digit name and address number of the lease operator.

 

OIL TYPE - Type of oil recovery. The codes may be user defined and are for information purposes. For example:

P - Primary

S - Secondary

T - Transferred

R - Regulated

 

GAS TYPE - Type of gas recovery. The codes may be user defined and are for information purposes. For example:

P - Primary

S - Secondary

T - Transferred

R - Regulated

 

PRODUCTION DATE - The date of the first production from the lease in MMDDYY

format. The date is used by the Depletion Application.

 

DATE ACQUIRED - The date the lease was acquired in MMDDYY format. The date is for information purposes.

 

CONTRACT DATE - The gas contract date for the lease in MMDDYY format. The date is for information purposes.

 

LEASE SEVERANCE TAX RATE - The 5 decimal digit severance tax rate for the states where the rate may vary by lease; i.e., Alabama, Colorado, Louisiana and New Mexico. The rates for states such as Texas that do not vary by lease are maintained in program tables. The rate is used in the calculation of windfall profit tax.

 

GAS ID # - The 10 digit comptroller's gas identification. The number is for information purposes.

 

USER DATA - 4 characters of user data for information purposes.

 

PURCHASER # - The name and address number of the purchaser. The number may be set up for information purposes. If the Revenue Application is installed, the purchaser number is in the Division of Interest Master and there may be multiple purchasers for the different products produced from the lease.

 

FASTAX - The 4 character FASTAX number. Used to sequence the X26B FASTAX report.

 

OLD AC # - Reserved

 

GROSS ACRES - The 5 digit gross acres contained in the lease. The data is for information purposes.

 

BILLABLE CODE - Reserved for future use.

 

PROSPECT # - The 5 character Lease Records Application prospect number. The number is for information purposes.

 

OUR WORKING INTEREST - The company's working interest in the lease. This field is for information only and may be left blank. Actual working interest is normally obtained from the Joint Interest File and may vary for wells in the lease.

 

REVENUE INTEREST - The company's revenue interest in the lease. This field is for information only and may be left blank. Actual revenue interest is normally obtained from the Division of Interest File maintained by the Revenue Application.

 

OIL RESERVES - Oil reserves in barrels. The field is 11 digits and contains 2 decimal places. The data is for informational purposes.

 

GAS RESERVES - Gas reserves in MCF's. The field is 11 digits and contains no decimal places. The data is for information purposes.

 

REVENUE INTEREST BEFORE PAYOUT - The total revenue interests of all working interest owners before payout. This revenue interest may be set up to report only the revenue associated with working interest owners on the gross lease payout report; i.e., royalty revenue will not be reported. If the interest is not entered, the revenue reported on the Gross Lease Payout Report will include royalty revenue.

 

REVENUE INTEREST AFTER PAYOUT - See revenue interest before payout.

 

ALLOCATABLE CODE - to designate a lease as allocatable or non-allocatable.

A = Allocatable, Blank Non-Alloc.

 

EXPLORATORY DEVELOPMENT CODE - Code to designate a lease as Exploratory or Developmental. E = Exploratory, D = Developmental, Blank = None

ACTIVE OR INACTIVE CODE - Code to designate a lease as Active or inactive.

A = Active, I = Inactive, Blank = None

 

F. State and County Masters

 

1. General

 

The Integrated Oil and Gas System has a system file that contains the names and postal abbreviations for all fifty states along with associated county names and numbers. When the system is installed, a program is executed to specify the states is which business is transacted and state and county records are automatically set up in the Master File.

 

The state and county records are used to verify the state codes and county numbers entered in the various applications. The names are used for work station displays and reports.

 

If the Payroll Application is installed, the following data is maintained in the state records where the company has employees:

 

         Base Wages for State Unemployment Tax

         State Unemployment Tax Rate

         Employer State Identification Number

         State Withholding General Ledger Number

 

 


2. Data Fields

 

FIELD EXPLANATION

 

STATE CODE - The two character postal abbreviation for the state. Example: TX = Texas.

 

COUNTY # - The 3 digit county number. A state record contains three zeros in this field. County numbers start with 001 and are incremented by one.

 

STATE/COUNTY NAME - The 16 character state or county name.

 

Note : The following fields are only used in state records if the Payroll Application is installed.


STATE UNEMPLOYMENT BASE - The seven digit state unemployment base in XXXXX.XX format.

 

STATE UNEMPLOYMENT TAX PERCENT - The 3 digit state unemployment tax percent in XXX format.

EMPLOYER'S STATE ID # - The employer's 14 character State ID number.

 

WITHHOLDING GL# - The 7 digit general ledger number for state withholding.

 

G. Field Masters

 

1. General

 

The Integrated Oil and Gas System allows for the maintenance of master oil and gas field names. If the user wishes to use a field as part of the location description for leases in the Master File or for prospects in the Lease Records Application, field numbers and descriptions must be assigned by the user and field master records must be created.

 


2. Data Fields

 

FIELD EXPLANATION

 

STATE CODE - The 2 character postal abbreviation for the state.

Example: TX = Texas

 

FIELD # - The 5 digit field number.

 

FIELD NAME - The 24 character field name.

 

H. Control Records

 

1. General

 

The Integrated Oil and Gas System uses control records to customize the applications to the individual users' requirements. The records specify valid source codes, set printer and date default values, identify operating company numbers and specify general ledger accounts where amounts are recorded by lease number and other special requirements.

 

This section of the documentation provides detailed information for the control records that apply to multiple applications. Control records that are used by single applications are explained in documentation of the specific application.

 

The control records discussed in this section are :

 

         Source Codes and Descriptions

         System Generated Batch Number Descriptions

         Printer and Date Defaults

         Options

         Operating Company Identification

         Accounts Receivable Account Numbers

         Accounts Payable Account Numbers

         Cash Account Numbers

         Lease Number Primary Accounts

         Name and Address Primary Accounts

         Net Amount Primary Accounts

         Gross Amount Primary Accounts

 

Explanations of the above control records are contained on the following pages and sample input forms are in the Sample.

 

 

2. Source Codes and Descriptions

 

Two digit source codes are used by the system to identify the type of transactions that produce an accounting entry. The standard codes used are listed below :

 

CASH RECEIPTS

10 Cash Receipts

15 Cash Receipt - DO NOT BILL

 

CASH DISBURSEMENTS

20 Manual Checks

21 Computer Accounts Payable Checks

22 Payroll Checks

24 Triggered Manual Checks

25 Checks - DO NOT BILL

26 Lease Records Delay Rental or Shut-in Royalty Checks

 

JOURNAL ENTRIES

30 Journal Entries

33 Payroll Journal Entries

35 Journal Entries - DO NOT BILL

 

SALES

40 Sales

 

ACCOUNTS PAYABLE

50 Accounts Payable

53 Non Operated

55 Accounts Payable - DO NOT BILL

57 Cash Basis

58 Accounts Payable - IMMEDIATE BILL

 

All source codes that end with the digit 5 are "Do Not Bill" codes. This applies to Joint Interest Billing and means that amounts entered using source codes that ends in a 5 will not be billed to investors or affiliated companies even though the general ledger account is specified as billable, i.e., 100 percent of the amount is charged to the processing company and there is no joint interest distribution.

 

Accounts payable source code 58, Immediate Bill, is used to produce joint interest billing for specified items outside the normal billing cycle. Joint interest invoices are normally produced once a month for all expenditures that have been accumulated during the month. Source code 58 allows special joint interest invoices to be produced that select only expenditures that have the special 58 code. This code may be used when the operator receives an unusually large bill and wishes to bill investors for their share immediately.

 

3. System Generated Batch Number Descriptions

 

The various applications use 900 series batch numbers to identify system generated transactions. The generated batch numbers and associated descriptions obtained from control records print on the "Accounting Recap Report".

 

The following descriptions should be set up in the control file.

 

KEY COLUMN 11 - 44 BATCH DESCRIPTIONS

 

*GL00901 A/P Computer Checks

*GL00902 A/P Hand Checks

*GL00903 Payroll Journal Entries

*GL00904 Billing Journal Entries-LOE

*GL00905 Billing Journal Entries-A/R

*GL00906 Cash Receipts

*GL00907 Revenue Checks

*GL00908 Revenue Minimum Pay & Suspense

*GL00909 Gas Production Tax Payable

*GL00910 Revenue Income Distribution

*GL00911 Oil Production Tax Payable

*GL00912 Transfer Drilling Expense to DHC

*GL00913 Cleared Lease for RAESUM 230/235

*GL00914 Volume Allocation-Operating Cost

*GL00915 Generate Dividend Checks

*GL00916 Billing Adjustment

*GL00917 Lease Records Rental Checks (Property Level)

*GL00918 Lease Records A/R (Property Level)

*GL00919 Billing Suspense Detail

*GL00920 Lease Overhead and Pumping Journal

*GL00921 Allocatable Lease Billings

*GL00922 Finance Charge Income

*GL00923 Lease Use and Production Tax

*GL00925 Lease Records Rental Checks (Prospect Level)

*GL00926 Lease Records Affiliated Companies Edit (Property Level)

*GL00927 Lease Records Affiliated Companies Edit (Prospect Level)

*GL00928 Reserved

*GL00929 Reserved

*GL00930 RAESUM reversal edit

*GL00931 RAESUM transfer edit

*GL00932 Accumulated Depletion

*GL00933 Revenue Intercompany Transfer

*GL00934 Depletion

*GL00935 Depreciation

*GL00936 JIB Accrual

*GL00999 A/P Balance Fwd for New Year

 

Each record contains a key, *GL00 plus the batch number, which is used to access the record. The associated description is contained in columns 11 - 44 of the record. The input form in the Sample Forms Section may be used as a source document to set up the records.

 

All source codes that apply to the user must be set up in a single control record and descriptions for each source code are set up in individual records, i.e., a description record for each source code.

 

The source code description that is set up is limited to 16 characters for printing purposes. The following 16 character descriptions may be entered or the user may wish to enter another description.

 

SOURCE 16 CHARACTER

CODE DESCRIPTION APPLICATION

 

10 Cash Receipts Accounts Receivable

15 Cash Receipt-DNB Accounts Receivable

20 Manual Checks Accounts Payable

21 Computer Checks Accounts Payable

22 Payroll Checks Payroll

24 Trigger Hand Cks Accounts Payable

25 Checks - NO BILL Accounts Payable

26 Delay Rental Cks Lease Records

30 Journal Entries General Ledger

33 Payroll Journal Payroll

35 J/E-DO NOT BILL General Ledger

40 Sales General Ledger

50 Accounts Payable Accounts Payable

53 Non Operated

55 A/P-NO BILLING Accounts Payable

57 Cash Basis

58 Immediate Bill Accounts Payable

 

The user should only set up source codes for the applications installed. The input form in the Sample Forms Section may be used to record the users entries. Note that all source codes are set up in one record, and individual records are used for descriptions.

 

4. Printer and Date Defaults

 

The printer and date default control record associates printers with specific work stations and sets up a default report date. Each work station may be assigned a default printer ID; however, if one is not set up the system printer (P1) will be used for print requests.

 

The system automatically displays a Data and Printer Information Screen whenever a report is requested from a work station. A report date along with other information such as default printer ID and number of copies are displayed on the screen.

 

The report date that is displayed is the month ending date of the current month, the prior month or the ending date two months ago. The control determines which of the three dates is displayed. See the input form in the Sample Forms Section for a detailed explanation of how the date is controlled. The form may also be used as a source entry document for work station printer assignment.

 

The default report date and printer assignments may be changed on the Date and Printer Information Screen when a work station operator requests a report.

 


5. Options

 

The options control record is used to specify if the Joint Interest Billing Application is installed and to identify the account number that separates balance sheet and profit and loss general ledger account numbers.

 

See the input form in the Sample Forms Section for a detailed explanation and use the form as a source document to set up the control record.

 

6. Operating Company Identification

 

The operating company control record identifies the companies that operate leases. The data is used by the system to verify company numbers that do joint interest billing or process revenue.

 

The control records require two entries for each operating company, the operating company ID and the processing company ID. If the operating company has an interest in any lease, the operating company ID is entered as both the operating and processing company.

 

If the operating company has been set up as an accounting entity only and has no interest in any lease, the processing company ID may be the affiliated company ID that has an interest in the leases. It should be noted that the processing company would have to always have an interest record in the lease, i.e., a zero interest is valid. The advantage of this approach is that zero net amount joint interest records are not generated for the operating company. Gross amount records are generated for operating companies that specify a different processing company.

 

Use the sample input form in the Sample Forms Section as a source document to set up the control record.

 

7. Accounts Receivable Account Numbers

 

The accounts receivable control record contains the accounts receivable general ledger numbers for which detail by name and address number is to be maintained. The system requires name and address number to be included with transactions that use any of the specified accounts and automatically creates detail records in the outstanding file.

 

If the Joint Interest Billing Application is installed, the first account number entered in the control record must be the joint interest receivable account since entries are automatically generated to this account. The Accounts Payable Application makes automatic entries for the amount to be billed to joint interest owners.

 

Use the input form in the Sample Report Section as a source document to set up the control record.

 

8. Accounts Payable Account Numbers

 

The accounts payable control record contains the accounts payable general ledger numbers for which detail by name and address number is to be maintained. The system requires name and address numbers to be included with transactions that use any of the specified accounts and automatically creates detail records in the Outstanding File.

 

Use the input form in the Sample Forms Section as a source document to set up the control record.

 

9. Cash Account Numbers

 

The cash account numbers control record contains the cash general ledger account numbers set up in the Chart of Accounts. The accounts are used to verify general ledger accounts used to post cash receipts and manual checks.

 

Use the input form in the Sample Report Section as a source document to set up the control record.

 

10. Name and Address Primary Accounts

 

The name and address control record contains the primary general ledger account numbers for which name and address number data is be maintained. The system requires name and address numbers to be included with transactions that use any of the specified accounts. The name and address number is included in the records written to the Capture File. The data from these records may be printed on the Year to Date Transactions Report by Name and Address Number.

 

It should be noted that the accounts specified in the accounts receivable and accounts payable control records require name and address numbers and these accounts do not need to be included in the name and address control record. An example of accounts where detail records may be required are notes receivable and notes payable: i.e., the user may wish to maintain a subsidiary ledger by name and address number for these accounts.

 

Use the input form in the Sample Report Section as a source document to set up the control record.

 

11. Lease Primary Account Numbers

 

The lease primary control record specifies the primary general ledger account numbers that require a lease number to be entered with transactions that use any of the primary accounts set up.

 

Use the input form in the Sample Report Section as a source document to set up the control record.

Note: That the specified general ledger accounts only require entry of a lease number which is validated against the lease master records. The detail by lease is not automatically maintained unless the account number is also included in the net amount primary accounts and/or the gross amount primary accounts control records.


 

 

12. Net Amount Primary Accounts

 

The net amount control record contains the primary general ledger account numbers for which net amounts are maintained in the Revenue and Expense File by lease, general ledger account and accounting month and year.

 

The accounts specified in the record must also be specified in the lease primary account numbers, property primary account numbers or the drilling primary account numbers control records.

 

Use the input form in the Sample Report Section as a source document to set up the control record.

 


13. Gross Amount Primary Accounts

 

The gross amount control record contains the primary general ledger account numbers for which gross amounts are maintained in the Revenue and Expense File by lease, general ledger account and accounting month and year.

 

The accounts specified in the record must also be specified in the lease primary account numbers control record.

 

Use the input form in the Sample Report Section as a source document to set up the control record.

 

14. AFE Number Primary Account

 

The AFE number control record contains the primary General Ledger numbers for which AFE Numbers are required. Note that the specified General Led Accounts only require entry of an AFE # which is validated against AFE Master. A dummy AFE Master can be established by Co/Dv/Br using AFE # 9900000, depending upon which type of AFE it is. That is O/G Contract Drilling, or General.

 

Use the input form in the sample report section as a source document to set up the control record.

 

15. AFE Description By Type

 

The AFE description control record contains the AFE Type Code and a corresponding description for reporting and/or verification purpose.

 

Use the input form in the sample report section as a source document to set up the control record.

 


I. Prerequisite Applications

 

There are no prerequisite applications. The Master File Application is included with the General Accounting Applications which contains the following:

 

         Master File

         Accounts Payable

         Accounts Receivable

         General Ledger

 

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