OGwin gives you options to allocate expenses, revenues, production, and sales based upon previously defined well allocation tables. Use the “Well Allocation Maintenance” function to define the allocation percentages.

Well-Allocation Record Usage

Use Well Allocation Records to allocate one amount to a group of wells. You may allocate expenses or revenues over a group of wells. OGwin will divide the total amount of the items according to the percentages on the allocation deck, then use the well deck to disburse the revenue or costs to the participants on those decks.

To spread costs or revenues over the wells:

• Enter the code for the allocation deck
• Choose type (“Field” or “Group”) from the pull-down menu
• Enter the effective date for the allocation deck
• Enter the total tokens for the distribution or the total of 100 percent
• Either enter a percentage directly for each well or enter tokens. OGwin will calculate the interests for each well. You may use token amounts to enter the production meter for each well in a gathering system.

Use the OGwin Purchaser Check entry to

• Enter total sales for the system
• Code total sales to the system well allocation record

NOTE: All of the wells in the allocation deck must have a common revenue or expense deck code to use for the allocations to the owners. The deck code is identified in the Purchaser Check Entry, A/P Invoice Entry, or Manual JE where applicable.

To use the allocation in Accounts Payable, change the type on the Invoice Distribution to “Field,” rather than “Well.”

Create a Partnership in Nine Easy Steps

Use the OGwin Partnership Module to create a company with general and/or limited partners. Subsequently, you may record contributions, generate partnership distributions and print K1s for the year.

In a partnership, the P&L account balances are taken to the capital accounts for General Partners and Limited Partners rather than to a Retained Earnings account.

NOTE: To work with a partnership, the partnership must be established by the creation of the General Partner or Limited Partner list in Partnership Partner’s Maintenance BEFORE you do any processing. A company that already has activity cannot be converted to a partnership.

1. Create any entities that will be partners in the partnership as either companies or owners. If a company in the database will also be a partner, use that same company code. Otherwise, set up the partner in Owner Maintenance.

2. Use Partnership Partners Maintenance to set up the General Partners (if any). OGwin will list the partners with their proportionate share of the general partnership (to total 100%).

3. Use Partnership Partners Maintenance to setup the Limited Partners (if any). OGwin will list the partners with their proportionate share of the limited partnership (to total 100%).

4. Use Partnership Accounts Maintenance to establish the “appropriate split” between the general partners and limited partners by GL account. The default for each account is 100% to the general partnership. Therefore—whenever 100% to the general partnership is not appropriate—use OGwin’s option to change the default setting to reflect the proper percent for that fiscal year. You may change this setting any time before the fiscal year is closed. Once the year is closed, OGwin will reflect any changes in the next year.

5. Use Chart of Accounts Maintenance to create the following GL accounts:
• General Partner Distributions
• General Partner Capital
• General Partner Contributions
• Limited Partner Distributions
• Limited Partner Capital
• Limited Partner Contributions
To keep partner activity by partner, give each of these accounts a location code: “Entity.”

6. To reference the GL accounts above in the appropriate categories, use Company Fixed Accounts Maintenance. Remember: all six partnership categories must be populated.

Once you have completed the maintenance, enter and post activity as needed. Close the GL and subledgers according to the standard processing rules.

7. To post contribution amounts for each partner as needed, use the Capital Contributions Entry.

8. Use Capital Check Print to generate partnership checks to the General or Limited Partners. (As with other OGWin check programs, you may record checks manually or void as needed).

9. With OGwin, you may create General Ledger Reports for the partnership as a whole, for general partners only, limited partners only, or for individual partners with the 230-Financial Reporting and 250-Property Reporting. (See Report Version in the report setup window.)

Subledgers VS General Ledgers—Learn the Keys to Maintaining Agreement

By design, OGwin maintains agreement between the subledgers and the general ledger. However, certain manual entries can create havoc and cause ledger agreement to disintegrate. One key to maintaining agreement is avoiding manual entries to the GL accounts that control the subledgers.

These controlling accounts include Accounts Payable Trade, Accounts Receivable Trade, JIB Clearance, Revenue Receivable, and Owner Advances. The golden rule is, “Never make manual journal entries coded directly to these accounts, bypassing the subledger.”

The Royalties Payable account also controls a subledger. While this account would not usually allow manual entries, some exceptions apply. (For more information, contact OGSYS Support.)

After each month’s processing, it is important to check each subledger balance to make sure it is in agreement with the controlling account balance in the general ledger. Get started by running the following reports:

1. The GL report (210-01) for each controlling account, for the current processing month and with prior balances. Run this report on a journal date basis.

2. The subledger report for each module:
a. Accounts Payable
Run Report 340-AP Detail, for all vendors, for Unpaid Items Only and by Transaction Date and Payment Date. The starting date field should be left blank while the cut-off date field should be the end of the current processing month. This report should agree to the GL report for the AP Trade account.
b. Accounts Receivable
Run Report 640-Aged AR Listing, for all owners. Any Aging Dates may be used as long as the latest date is the end of the current processing month. This report should agree to the GL report for the AR Trade account.
c. Joint Interest Billing
Run Report 720-JIB Billing Prelist for all owners (or wells). Use a “bill-thru” date of the end of the current processing month. Include suspended items but do not include future items. This report should agree to the GL report for the JIB Clearance account.
d. Revenue
Run Report 420-Revenue Check Prelist for all owners. Use a check date of the end of the current processing month. Include suspended items. This report should agree to the GL report for the Revenue Payable, Legal Suspense and Minimum Suspense accounts.
e. Revenue Receivable
Run Report 490-Aged Revenue Receivable Listing, for all purchasers. Any Aging Dates may be used as long as the latest date is the end of the current processing month. This report should agree to the GL report for the Revenue Receivable account.

TIP: When the subledger controlling account has the proper location, it is easier to see the agreement or disagreement to the subledger report on the general ledger report. The location is defined in the chart of accounts maintenance as “None,” “Well,” or “Entity.”

For example, the Accounts Payable report shows by-vendor activity; therefore, keep the AP Trade account by Location: Entity, so that the GL report shows by-vendor subtotals.

If there are any differences between the GL and subledger reports, contact OGSYS System Support.

New Excel® Macro for the Journal Entry Transfer

For many years, OGwin has provided a journal entry upload feature. This program creates an unposted manual journal entry from an ASCII file in a specific file layout.

Recently, however, OGSYS has added an extra benefit—an Excel macro for the JE transfer that will check your data prior to the upload. It also helps format the data correctly for the upload file by automatically editing field sizes and checking for proper structure. This macro ensures that each voucher balances by date, flags missing data or values that are too long, and inserts quotations for text. Provided the system detects no problems, the macro will create the transfer ASCII file automatically.

To receive this macro, contact OGSYS support . . . or download from http://www.ogsys.com.

Also note “coming attractions”—an Excel for budget and AFE uploads.