Revenue is definitely one of the more challenging oil and gas accounting processes. Do you need help understanding the Revenue Receivable functions of your OGsql software? Our support team is here to help you!
When the Purchaser Check Entry program on the Revenue Processing menu is used to input data with a Type of ‘Check’ then the net revenue amount is posted as a debit to the Revenue Received Cash account to record the deposit. But when a Type of ‘Statement’ is used, then the net revenue amount is posted as a debit to the Revenue Receivable company fixed account, to create an R/R invoice to the purchaser for each well. All other entries generated by the purchaser check voucher are the same whether it is a Check or Statement.
The Revenue Receivable fixed account is referenced in the Company Fixed Accounts table and is not (or should not be) the same GL account as the Sales Receivable account referenced on the Product Fixed Accounts table. The Revenue Receivable fixed account typically has a Location of ‘Entity’ in chart of accounts maintenance so that the data subtotals by Purchaser.
Once the purchaser check voucher is final posted, the R/R Invoice can be printed if needed, using the R/R Invoice Print program on the Revenue Receivable menu.
When the payment is received, use the R/R Payment entry program to relieve the receivable. This will post a debit to the Revenue Received Cash account and a credit to the Revenue Receivable fixed account. Do Not try to clear the receivable with a manual journal entry because that will by-pass the R/R sub-ledger to cause a disagreement between the sub-ledger and the general ledger.
The general ledger balance in the Revenue Receivable fixed account should agree to the 490-Aged R/R Listing when run through the current period and on a Journal date basis.
Revenue Receivable processing also allows for R/R Invoice Entry (outside of the Purchaser Check Entry program), R/R Adjustments and Cross-Clearing of purchaser’s balances. There is also an on-screen inquiry for purchaser balances.
Please contact OGSYS Support for any questions about the Revenue Receivable feature.