Establishing an AFE (Authorization for Expenditure) Code:

AFEs are important controls for oil and gas accounting. OGwin allows for the accumulation of AFE activity in the general ledger, and reporting of that activity at the AFE level.

To establish an AFE within the OGwin database, first set up a six-digit code for tracking, beginning with Master Maintenance\G/L & Report Maintenance\AFE Maintenance. An AFE code may include numbers, letters, decimal points, hyphens, asterisks, and slashes. An AFE can be established for a well, operating group, tank, battery, or field.

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 this AFE code has a transaction date later than the completion date, OGwin 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.

Entering Actual AFE Expenditures:

To code expenses to an AFE, enter the AFE code on the A/P 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 G/L accounts by checking the box in Chart of Accounts to “Require AFE Number.” After that, whenever a user enters that well or that account without entering the appropriate AFE code, the system displays a warning. Users can then opt to continue without an AFE code.

The system carries through the AFE number to JIB costs and appears on JIB invoices. OGwin maintains the AFE expense balances internally for each AFE. The system applies Advances entered using an AFE code against expenses on JIB Invoices only if the expense item also references the same AFE code.

Entering AFE Budget Information:

Use Process\General Ledger Processing\AFE Budget Entry to enter AFE budgets for AFE-related accounts. OGwin matches budget items with an AFE code against items with the same AFE code. The system allows budget items to be entered as monthly totals. These budget amounts can be included on the Report Writer reports. OGwin tracks gross and net volumes and dollar amounts for all three types of accounting records.

Budgeted amounts are input by AFE\Budget type\Budget year\Basis\Account. You may enter them by month or in a lump sum for AFE budget to-date reporting. Use the AFE Budget Copy menu item to copy budgets between years, basis, accounts, or budget types.

AFE Reporting:

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 all G/L reports (Reports 210, 212, 230, 240, and 250). One of the most useful AFE reports is a comparison between actual and budgeted AFE amounts. The comparison report will be a Report 230 with columns defined for budget and actual amounts, run by AFE (select “Report Limited to Certain Properties” and change the selection method to “AFE”).

Below is a sample line format created for an AFE report. See the Report Writer Manual for details on how to create a line and column format. Set up line formats at Process\Master Maintenance & Ref. Listing\G/L & Report Maintenance\Line Financial Format Maintenance.

Set up column formats at Process\Master Maintenance & Ref. Listing\G/L & Report Maintenance\Column Financial Format Maintenance.

To run the AFE budget vs. actual report, use General Ledger Processing\General Ledger Reports\Report 230-Financial Report, selecting “Report Limited to Certain Properties” and change the selection method to “AFE” which in turn activates Expenditure Selection Method. Turn on OGwin Options 25 and 136 to choose the “Selection Method.” If the selection method is not available, call OGSYS Support for assistance for turning on options “25” and “136” in AFE reporting. Choose the line and column formats you established and the appropriate date range and basis.

How to Begin Netting an Owner

In OGwin, “netting an owner” means applying revenue due to an owner against the owner’s accounts receivable invoices. Use a field on Screen 2 in Owner Maintenance to determine whether the owner is to be netted, netted by well, or not netted.

Execute the netting process in any one of a number of places in the system – from the Revenue menu, AR menu, in conjunction with the Revenue Check Prelist, Revenue Summary Statements, AR Summary Statements, or the Aged AR Report. If you don’t already have netting procedures for your company, run the process from the Revenue menu. For netting in monthly steps, refer to the processing checklist for Revenue in the OGwin Training Manual, Page 59.

Whenever you specify an owner for netting in Owner Maintenance, all revenue for that owner will be used to clear against all AR invoices for the owner. Netting by well will consider only revenue for an owner for a certain well to be cleared against AR invoices for the same well. The system will not cross well boundaries. If you would like to perform both netting “by well” and an “all netting” for an owner, contact OGSYS Support and ask for this specific netting routine.

OGwin reflects netting for an owner on both the Revenue Summary Statements and the AR Summary Statements. Always run Revenue Summary Statements for netted owners, even if you print the detail on their revenue check stubs. Any revenue that is completely netted will not print on the check stub but will appear on the statement.

The system will not allow revenue redistribution of an amount that has been partially netted. Contact OGSYS Support for instructions on redistributing netted revenue.

Simplify Multi-lease Changes by “Tagging”

There may be instances when you want to make a change to several leases simultaneously. Instead of making individual changes to each lease, use OGwin’s Lease Processing module “tagging feature” to make all the changes at once.

OGwin provides an easy, two-step process to set up multi-lease changes:

(1) Use the Tag Generation program to tag the leases to be changed. Identify the ID to use for tagging (it defaults to your user ID) and make the lease selection. The system produces a report showing the tagged leases.

(2) Go into Lease Maintenance and call up one of the leases that was tagged, make the change, and save it.

The system will display the following screen:

Respond, “Yes.” OGwin will display “Are tag IDs to be cleared during the mass change? Yes / No.” After the response, OGwin will display a screen showing each lease code as it is being changed. Once complete, all previously tagged leases will have been changed.