Well P&L for Company Interest

Select Financials - Wells - P&L (Working Interest and Company Interest)

For notes on Filters, see Well P&L for Working Interest

If a unit is marked “CLOSED” in the Unit/Well file, Derek will not print a P & L for that unit.

Derek reads through the DOI file to determine which owners are checked for company interest for each unit. This percentage is then multiplied by the gross amount of each transaction and by the company's percent interest under that status to obtain the value for the company interest. The general ledger number is now reflected on the Well P & L Company Interest for better cross-referencing.

The report uses records in the Transaction file to calculate month to date, year to date and life to date values.

Unit is the lowest level, master unit groups units, a lease groups master units, prospect is the highest level which groups leases.

Company charges to owners are expenses to the owners, but are treated as income for your company. The company's income less the company's share of this expense would reflect the company's true income for these charges. There is no limit to the number of general ledger accounts you can have for company charges; however, they must be in numerical sequence, one after the other. For example, you cannot have a numerical sequence of general ledger numbers that has a company charge (74175 Admin. Expense) followed by a non company charge (ex: 74176 Materials) and then another company charge (74180 Pumper Expense). Use the Key Code Change in Tools under the Data Tools programs to change 74176 to another general ledger number above 74171 or below general ledger number 74189. Normally, most operators reserve general ledger numbers 74171 to 74189 for the company charges, however, you can use any sequence of billable expense general ledger numbers (71000 to 75999) for these accounts.

MORE ON COMPANY CHARGES TO INVESTORS

These are normally charges that your company makes to Investors for operating the wells. For example, Administrative Charges. These charges are expenses to the Investors but are income to your company. The company normally shares a percentage of the expense along with the other owners. Use the Add Recurrent Transaction routine to enter these charges. Credit income (general ledger number 40000 to 49999), instead of cash, and debit an expense account. Most operators reserve general ledger numbers 74171 to 74189 for these expense accounts. (Usually general ledger numbers 74000 to 74999 are for Lease Operating Expenses.) You can use the Key Code Change program under Tools, Data Tools to change general ledger numbers in all files, if you need to change some general ledger numbers for the correct sequence of general ledger numbers for this report.

You can print multiple copies by increasing the number of copies on the print box.

How does Derek calculate the MTD, YTD and LTD columns on the P & L report?

MTD

Beginning - Ending transactions dates set by filter

YTD

Beginning date = MM/DD from Fiscal Year Close date in Company Heading file plus one day. YY from Ending Transaction Ending Date = Ending Transaction date set by filter.

LTD

Everything

Example:

Fiscal Year Close for company = 10/18/2011

Beginning Transaction Date set by filter = 04/01/2011

Ending Transaction Date set by filter = 04/30/2011

MTD: Values would be calculated for date range 04/01/2011 - 04/30/2011

YTD: Values for 10/19/2010 - 04/30/2011

LTD: Values for 01/01/0001 - 12/31/9999

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