AFEs are important controls for oil and gas accounting. OGsys allows for the accumulation of AFE activity in the general ledger, and
Establishing an AFE Code
To establish an AFE within the OGsys database, first set up a 10 character code for tracking, by going to Process / Master Maintenance / GL and Report Maintenance / AFE Maintenance. An AFE can be established for a well, operating group, and field. If the production module is active it can also be established for a tank or battery.
In AFE Maintenance, users can input two dates, completion date and close date. The completion date is the potential date for finishing the AFE. Whenever a transaction entered with the AFE code has a transaction date later than the completion date, OGsys will issue a warning. The system displays a warning only when you enter a later date. Entering a date in the close date field closes the AFE. Once an AFE is closed, no more items may be posted to this AFE.
Enter Actual AFE Expenditures
To code expenses to an AFE, enter the AFE code on the AP Invoice Entry screen or on the Manual Journal Entry screen. The AFE field is available on these screens when you enter a well code. Users can require an AFE code for select wells by checking the box in Well Maintenance to “Require AFE,” or GL accounts by checking the box in Chart of Accounts Maintenance to “Require AFE.” After that, whenever a user enters that well or that account without entering an AFE code, the system displays a warning. Users can then opt to continue without an AFE Code.
AFE budgets may be input into the database for comparison to actual AFE activity. The budgets may be entered manually by going to Process / General Ledger Processing / AFE Budget entry or you may upload them using the Import function under Process / Exceptional Processing / Import Data From ASCII.
AFE budgets are entered by account. You may have budgets for both gross and net amounts for all three bases, cash, journal, and accrual.
An AFE import spreadsheet is available for download on the OGsys website.
Maintaining a balance on an AFE is not useful unless it may be carried through to reporting. You may report on an AFE level on G/L reports 210, 212, 230, 240, 250, Excel GL 210 Detail/Summary, and Excel AFE Summary. One of the most useful reports for comparison of budget and actual activity is the Excel AFE Summary report. This report has a drill down feature for AFE detail.
Learn about more OGdash AFE Gadget features – Click Here!