WHAT’S NEW FOR 1099s . . .

The IRS has made changes to the electronic and disk media file layouts this year, as well as changes to the 1099 DIV forms. You may download 1099 updates for OGSYS version 1.7 from our website — http://www.ogsys.com. Then, just apply it against your database for 1099 changes.

As always, review all 1099 instructions and publications from the IRS before filing the returns.

STREAMLINING THE 1099—FAQ

Q: What’s the difference between “Print Non-qualifying Amounts?” and “Print Non-flagged Vendors?” on the Vendor 1099 Proof Report?

A: Printing all “non-qualifying amounts” will produce all amounts . . . regardless of the minimum you have set on the 1099 run. Printing “non-flagged vendors” will produce all vendors . . . regardless of the flag in the master file for “Send—1099.”

Q: What if I void a 2003 check in 2004, after I have already sent out 1099s?

A: When the 2003 check is voided, OGSYS will update the 1099 file for 2003, which you will not see unless you decide to re-run your 2003 1099s. What happens in 2004 depends on whether you re-issue the check. If you issue it with a 2004 date, OGSYS will update the 1099 file for 2004, so that the amount is reported for 2004. If this is not the desired result, simply adjust the 1099 amount using the adjustment entry screens.

Q: When I attempt to close January 2004 for Revenue, the system says it will purge prior year’s 1099 information. Does this mean for 2003?

A: Yes. OGSYS purges the prior year’s 1099 information with the January Revenue close. Make sure you have a year-end back-up before proceeding.

Q: Can I print 1099s more than once?

A: Yes. You may print 1099s over and over until the information is purged. OGSYS does not purge 1099 information until the 1099s have been printed after the December month has been closed for that module.

Q: OGSYS says I didn’t print 1099s for last year, but I did. What does this mean?

A: You should run the December close prior to the final 1099 run. If you run the 1099s prior to (not after) the December close, OGSYS does not recognize the 1099 run as “official.” Therefore, it does not purge the information for that year and could blend it into the next year.

Q: Can I run Electronic 1099s or Disk Media more than once?

A: Yes. You may generate 1099 electronic or disk media as many times as necessary until the information is purged. Make sure you generate 1099 information to an electronic file or disk media before closing January for the module.

Q: Which address box is used for 1099s?

A: On 1099 forms, the system will pick up the address from the default screen of the master file record. Electronic and disk media and substitute 1099 forms also use the address from the first screen.

Q: How do I get Vendor 1099s to print in the “Rentals” box?

A: By default, Vendor 1099s print in Box 7—the non-employee compensation box. However, it is possible to choose the payment type and therefore the box for a vendor’s 1099 amount. Vendor maintenance allows you to choose from the following payment types: 1—Rents, 2—Royalties, 3—Other Income, 6 – Medical Payments, 7 --Nonemployee Compensation, and 14—Gross Attorney Fees.

Q: What are substitute 1099s?

A: The IRS allows substitute 1099s (in place of standard 1099 forms) to be sent to Owners/Vendors. This is especially helpful to users who file electronically or by disk media. Send the electronic file or disk media to the IRS, then print substitute 1099s to send to the Owners/Vendors. As a result, you may avoid buying the standard 1099 forms. NOTE: Do not send substitute forms to the IRS. You will be charged a penalty fee for filing incorrectly.

Q: The 1099s for Electronic and Disk Media ask the question, “Prior Filing Year?” Does this mean I can run 1099s for 2002?

A: In normal processing in 2003, you may not print 1099s for 2002 since that information was purged in January of 2003. This field is part of the record layout for electronic and disk media 1099s, so it must be included here. To be able to answer “Yes” to this field, you would have to take extra steps to ensure that the data is available.

Q: May I select and sort by vendor/owner codes for 1099s?

A: Yes. You have entity selecting and sorting capabilities for all 1099 processes.

Q: I need a list of all the vendors/owners with no Federal ID.

A: You may select and sort by a Federal ID number any place where you have entity selection capabilities, including all the 1099 processes and entity listings. When you sort by Federal ID, the system places all vendors/owners without an ID at the beginning of the report. The Federal ID also prints on the brief entity listing.

1099 TO-DO LIST

1. Always:

• Run an Accounts Payable Close Month for December before printing Vendor 1099s for a year.

• Run a Revenue Close Month for December before printing Owner 1099s for a year.

• Run a Lease Records Close Month before printing Land-Owner 1099s for a year. You may print the 1099 Proof Reports at any time during the year.

2. Print the 1099 Proof Report to verify 1099 amounts and to verify which entities will receive a 1099.

3. You may adjust 1099 amounts. For vendor 1099 adjustments, use the Vendor 1099-History Entry function from the Vendor History/1099s Menu. OGSYS will display a screen showing the check detail total and the 1099-history amount. The sum of these two figures is equal to the amount that will be printed on the 1099 form. To make adjustments to a Vendor’s 1099 amount, increase or decrease the 1099-history amount as needed. This is a replacement amount and it will be added to the check detail total to give you the actual 1099 amount.

For Owner 1099 adjustments, use the 1099 Adjustment Entry function from the Owner 1099s/Balances menu. Enter adjustments as replacement amounts in the appropriate fields.

For Land-Owner 1099 adjustments, use the Land-Owner 1099-History Entry screen on the Lease-Records Maintenance menu. Enter the adjustment as a replacement amount in the appropriate field.

4. Always verify 1099 amounts for at least one vendor/owner prior to mailing 1099s.

5. If December Close Month is not run prior to printing 1099s, subsequent years’ 1099s will include amounts from the prior year. To correct, reprint 1099s for the prior year, and run the module Close Month for December of the current year.

NOTE: OGSYS includes items netted within the current 1099 calendar year in that year’s 1099 amounts. Therefore, do not run the cross-clear program using a December voucher date, unless the items being netted are to be included in the current year’s 1099s. Items to be included in the next year’s 1099 must have a January-or-later voucher date.

Substitute 1099s are available for Vendor 1099s, Owner Royalty 1099s and Land-Owner 1099s. Use these substitute forms to mail to the Vendors/Owners. These forms are not intended for the IRS. You will see Substitute 1099s in each respective 1099s menu. If you do not, contact OGSYS System Support.

NOTE: OGwin users filing disk media 1099 should save the file to a network or local drive using any file name. Then go to the Split Program for 1099 found on the Exceptional Processing menu. This program will copy the file to the diskette assigning the IRS filename. Perform this process even if the file spans only a single diskette.

NEVER FEAR. YEAR-END TIPS ARE HERE!

• Make a year-end backup before closing the General Ledger.

Most important—This backup should include ALL OGwin files; data, programs, and control files. By copying all of OGwin, you are ensuring that you can restore the database for that time period, if necessary. Retain this backup permanently, do not overwrite with a later backup. NOTE: If only the data files are backed up and your current database has been upgraded with a release, you will not be able to use the year-end backup.

• The year-end General Ledger Close performs some extra steps.

The close routine will take the balances in the Profit and Loss (P & L) accounts and zero them into the Retained Earnings account for corporations, and into the Capital account for partnerships. Because of this, it is important to make sure your Fixed Account Maintenance is set up accurately. Make certain the first P & L account is specified correctly because the system will take every account from the first P & L account forward, and zero it to Retained Earnings. Also, make sure the Retained Earnings or Capital account is coded correctly in the fixed accounts. DO NOT close the General Ledger for the year without having the first P & L, Retained Earnings, and Capital accounts coded correctly because you will not be able to correct the incorrect balances by re-closing the year for the P & L accounts without restoring your database. The year-end General Ledger may be re-closed, however, for any adjusting entries that are posted in the new year.

NEW IN OGwin—INTERNAL BACKUP FOR SUPERVISORS

OGwin includes an exceptional and easy-to-use Quick Copy/Quick Restore feature. Users with supervisor rights can log in to OGwin exclusively and use System-Quick Copy to backup data prior to running sensitive procedures. This backup is not designed to replace the normal daily backup, but it is an excellent supplemental backup.

Procedures for using Quick Copy:

Log in to OGwin exclusively, using a user ID with supervisor rights.
Go to System / Quick Copy.

3. Indicate the database to be backed up, the path for the copied files, and if data files only are to be backed up. The default path for copied files is a new /Copy folder directly under the database folder.Files backed up in this manner are compressed and can only be restored using the Quick Restore feature.

4. Once you complete Quick Copy, you must log in to OGwin again.

Procedures for using Quick Restore:

1. Log in to OGwin exclusively, using a user ID with supervisor rights.

2. Go to System / Quick Restore.

3. OGwin requires you to confirm that you want to continue with the restore procedure three times. All existing data files will be overwritten.

Answers to Key Questions

Q :  I see the Target Expense Deck in the JIB redistribution.  Can I use this to transfer expenses from one well to another?

A: No.  The JIB redistribution only transfers items between owners, not between wells.  The Target Expense Deck feature is used only to identify owners to use for the redistribution.

Q: How can I see the charges billed to owners on a JIB invoice?

A: Prior to printing JIB invoices, print the JIB prelist by owner and retain it permanently. Once the JIB invoice is printed, you will no longer be able to obtain the JIB invoice details from within OGwin. When you print the JIB invoices, send the output to “Hold.” From the Output Manager, print the JIB invoices by using the “Scheduling” button and be sure to uncheck the box “Delete the Output when Printing Begins.” Next, use the “Archive” feature to permanently retain the JIB invoices outside of the Output Manager. To print a single invoice at a later time, select “Unarchive” to return the JIB invoice print to the Output Manager. Click “View with page number.” Click “Edit-Find” to enter the 0wner code or name. This will find the page number for that owner. Finally, “Extract” that page and print the desired JIB invoice.

Q: Is it possible to save changes to the output manager screen, so I don’t have to remember to make changes to the screen everytime I run a report?

A: Yes. At the bottom of the Output Manager Screen, check “Save these settings as default settings for this report and user.” The system will save for future reporting anything you change (including printer property settings). For example, when you run JIBs, you should always keep a copy of them on hold in the output manager. You may set this as a default setting, so the person running JIBs doesn’t have to remember to save the copy.