FAQ - Monthly Reports
How do I know if my Company P&L is correct, if the Gross side and the Company Interest side do not agree on the P&L Statement?
If the company’s owner number is 99990-99999 and coded ‘Y’ in the company interest field in the DOI file is the only time the gross side and company’s interest side of the P & L should be the same. If the company’s owner number is any other number, both sides of the P & L will not be the same.
Always print a Company P & L statement and a Recap for Company Interest periodically. Compare the company’s interest on the P & L to the company’s Operating Statement after update. The values should agree except for pennies.
How do I check the values on the Company P&L for the Gross side and the Company Interest?
If the owner number is a 99990-99999, no debit/credit transactions are generated for this range of numbers. The DOI is the only file updated for revenue, taxes and or expenses for this range of owner numbers. Only the company’s owner number should be coded ‘Y’ in the company interest field of the DOI file.
The gross amount of revenue less the gross amount of taxes minus the revenue distribution offset accounts should equal the company Interest of revenue less company’s share of taxes. The same applies to the gross amount of billable expenses, 71xxx-75xxx less the JIB billing offset account should agree with the company’s share of expenses for these general ledger numbers.
How are P&L Net profits computed on the Gross side and on the Company side?
The Company P & L statement consists of 2 sides, company interest on the left and gross on the right side of the report.
Company P & L uses the beginning and ending transaction dates entered for this report.
Gross values: Read for each transaction in the Transaction file for general ledger numbers, sales, (3xxxx), income (4xxxx), taxes (5xxxx), expenses (71xxx to 99999). They are the gross amount of each transaction.
Company Interest values: The gross amount of each transaction for a unit and the status code for each transaction for sales (3xxxx), taxes (5xxxx) and billable expenses (71xxx-75xxx) is read from the Transaction file. If the transactions for these general ledger numbers have a unit number, the DOI is checked under that status for any owner number coded ‘Y’ in the company interest field of the DOI file. The gross amount is multiplied by the status percentage in the DOI file for each transaction to calculate the company interest values for these general ledger numbers. Owners (normally numbers 99990 to 99999) in the DOI file must be coded ‘Y’ for the company interest field. If no DOI exist for transactions with a unit or no unit number exist for a transaction, 100 percent of the gross amount is used for the company’s interest.
A Company P & L and recap report should be printed periodically to verify all amounts before continuing to the next month.
This is an example of how to compute P&L net profit(loss). If Company and Gross don't match this should help you towards understanding where you went wrong and what measures to take.
Lets assume we entered $3025 Gross revenue. $250 Gross taxes (Cost of Sales) and the company has 10% interest in the well.
To find Company side of Revenue
$3025.00 Gross side of Revenue Sales
- 250.00 Gross side (cost of sales)
---------------
$2775.00
Subtract Revenue disbursed
$2775.00
-2497.50 Gross side (76330- revenue disbursed)
---------------
$ 277.50 (Should be companies portion of revenue)
To verify
$ 302.50 Company side of Revenue Sales
- 25.00 Company side (cost of sales)
--------------
$ 277.50 Matches total from above!!! You are in balance!
What can cause incorrect P&L statement?
Things to look for, if your P&L is somehow incorrect.
1. An incorrect Transaction Date was entered when adding a transaction, i.e., (07/01/2066). View your Transaction Listing Report, leaving your transaction dates as they default to when setting your Filter will result in a list of all entries made.
2. May have used the incorrect Status Level when adding a transaction or a Journal Entry was made without a Unit Number. Check your Transaction Listing for verification of entries made.
3. There is a possibility that interest was sold or bought from or to the company. This may have happened after an update of Operating Statements but a failure to reprint a P & L statement after an update and before a sale could result in different P & L values. The P & L will reflect the % after interest is sold, and this is normal.
4. An owner number in the Division of Interest is marked ‘Y’ for Company Interest when it should not be. Also, the company owner number could be marked ‘N’ when it should be ‘Y’.
5. A debit or credit may have been made (Journal Entry) to the 76330 (Revenue Offset) or 76320 (JIB offset) resulting in a difference on the P & L for those values.
6. Compare the Current Month Values on the P & L for the company’s side against the current months Operating Statements. These values should be the same.
Why doesn't the Released Suspense Revenue Report agree with what was Released for an Owner?
The Transaction file and the DOI files are used for this report. The beginning and ending suspense date is picked up from the DOI file. The transactions for the beginning and ending suspense dates in the DOI file are checked in the Transaction file to locate the unit number and status used for these dates. The program looks in the DOI file for the current percentage for the owner under that status to calculate the revenue and tax amount and list the detail. If percentages for the owner have changed for the status between the beginning and ending suspense dates the Released Suspense Revenue Detail report will not reflect the same values as the original Operating Statement.
Why doesn't the Minimum Check Detail report agree with the amount on the Minimum Check Summary report for an Owner?
The Minimum Check Withhold Detail data is generated as a result of an operating statement update. The Owner/Customer file is updated for the total minimum withheld amount for each owner from the Operating Statements updated. Changing the Owner/Customer file for the amount withheld for an owner does not effect the Minimum Check Withhold Detail file.
Regularly display the Minimum Withhold Summary report for company life to date total and compare the Minimum Withhold Detail report for all owners not released. The total of both reports should agree. The total should agree with general ledger number 21011.
How do I correct Revenue if the Interest in the DOI was wrong for only 2 Owners on the Unit, and the Month has been closed?
Let’s use an illustration. There are 10 owners in the DOI for this unit under revenue and tax status 1. The correction only effects 2 owners. In the DOI revenue status 7 and status 8 should have a .00000000000 percent for all 10 owners. Edit this unit and under status 7 for revenue enter the same percent for these 2 owners as status 1 for revenue. This is the incorrect percent that was used when statements and checks were updated. Enter the correct percent for these 2 owners under revenue status 8. Enter the same gross revenue in the Transaction file for this unit but reverse it with the status codes. Debit sales using revenue status 7, continue posting and credit sales using revenue status 8. Only these 2 owners will be effected as all other 8 owners have a 0 percent under revenue status 7 and 8. If tax was deducted at the incorrect percent, use tax status 7 for a credit to taxes and continue posting for a debit to taxes using tax status 8.
The Company P & L and the Well P & L will not be effected, only the Operating Statement and update for these 2 owners. Try this in the sample data directory to see the result of the Operating Statement and the update before entering in your data directory.
How do I correct Expenses charged at the wrong DOI status for all Owners?
Use the same principal as for revenue. Print the DOI file prior to changing percents and make sure the status you are using for correction is a 0 (zero) percent status. Enter the incorrect percentage under expense status 7 and the correct percentages under expense status 8. Reverse the expenses in the Transaction file. Credit expenses for this unit using status 7 and debit expenses for this unit using status 8 for expenses.
What GL accounts should I use when entering transactions?
Familiarize yourself with accounting or contact your accountant for advice. RSI cannot advise you what general ledger accounts you should debit or credit when making entries.
If an A/P Invoice was entered and paid, but charged to the the Wrong Unit. How do I charge the correct Unit if the month has already been closed?
If the correct amount was paid to the vendor you do not renter an Accounts Payable invoice. Reverse the expense in the Transaction file. Credit the expenses to the incorrect unit and debit the expense to the correct unit. Use the sample data directory to experiment before making entries into your data directory.
How do I track Gross Revenue when our Company only receives our share for Non-Operated wells?
If you want the Well P & L to reflect the gross and the company’s share correctly you should set up the DOI file. Normally for non-operated properties, the company’s owner number will be a 99999. Add another owner in the Owner/Customer file like 99992. The name would be “Revenue Disbursed by Purchaser” or “Balancing Owner”. In the DOI enter the 99999 with the company’s revenue percent, they own 25%, this owner should be coded ‘Y’ in the company interest field. Owner 99992 is coded ‘N’ in the company interest field and the revenue percent they own is 75% of the revenue.
Add general ledger number 76325 as “Revenue Disbursed by Purchaser” in your Company Chart of Accounts. In the Transaction file, credit sales for the gross revenue amount of $1000.00. Debit the bank for what the company received, $250.00, debit general ledger number 76325 for the balance amount of $750.00 that was disbursed by the purchaser. This keeps the general ledger in balance and gives a Well P & L reflecting gross value and the company’s interest of the revenue. Remember that updating Operating Statements does not make transactions for these hard coded owner numbers. Only the DOI file will be effected for update of Operating Statements. You may also refer to the Appendix section for details.
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