Company Chart of Accounts File

Company Chart of Accounts

The whole Roughneck system revolves around the GL System. Each transaction is recorded to a GL Number. The GL Number on a Transaction indicates to Roughneck whether the item should be used in such routines as Printing Operating Statments or some other routine of Roughneck. For example, whether the transaction is a Billable Expense to Investors or not.

Chart of Accounts = a series of GL accounts

Company Chart of Accounts = keeps track of individual GL Accounts for a Company

Unit(Well) Chart of Accounts = keeps track of individual Expense and Revenue items for a Unit/Well

You must set-up a Chart of Accounts for each Company and each Unit or Well. Certain GL Numbers for the Chart of Accounts are reserved, see GL Number Restrictions below. The printing of the P & L, Balance Sheet, and Operating Statements are triggered by general ledger code numbers, such as assets, liabilities, billable expenses, sales, taxes/deductions etc…

TIME SAVER:

If you have multiple companies, once you setup a Chart of Accounts for One Company, you can use the Quick Copy Tool, to quickly copy the Chart of Accounts to another company. Same with Units or Wells. To save time setting up companies and units, you can copy a Chart of Accounts from one company to another or from one company to a unit (the current month and year to date balance figures are not copied). After copying the accounts, you can go to Master on your tool bar to make any additions, changes or deletions for the new company or unit.

Select Master - Company Chat of Accounts

Each company must have a Company Chart of Accounts. The Company Chart of Account file stores the general ledger number with the description along with the month and year to date balances for each general ledger number. The design format for financials such as the totaling type, account type, and the column to print on balance sheet should be set up here.

Note: In order to display all records of a file, the Filter conditions must be blank, otherwise it will only list records that were contained in the previous filter.

Please refer to sections below

GL Number Restrictions

Required GL Numbers

Required GL Numbers for Payroll

NOTES ON FIELDS

COMPANY NUMBER: The company number this G/L number will be assigned to.

GL DESCRIPTION: Your personalized description for this account. If GL Number needs to be changed in the future, you must go through Utilities, Data Tools, Key Code Change. Refer to Utilities section in Manual.

MTD COMPANY INTEREST: Company’s portion of the total (gross) of transactions for the month for this general ledger number. If no unit number is assigned for any transaction with general ledger numbers 3xxxx, 5xxxx, 71xxx-75xxx, the gross transaction amount is added to company's balance.

YTD COMPANY INTEREST: Company’s portion of the total (gross) of transactions for the year for this general ledger number.

TOTALING TYPE (1 to 99):

TYPE 1 accounts are title accounts only and are not open for transactions (debits and credits). An example might be assets, current income, cost of sales, liabilities, office expenses, billable expenses, non-billable expenses, etc…, where these headings are desirable in the printing of the Balance Sheet or Income Statement.

TYPE 2 accounts are open for transactions (debits and credits). These are your normal accounts that are used when posting to the general ledger. Only Type 2 accounts can have transactions entered for them.

TYPES 3 to 95 totaling accounts and only used to print a subtotal on the financial statements. Type 2 accounts total into the next larger type, likewise all type 3 accounts will total into the next larger type, and so forth.

ACCOUNT TYPE (MASTER, SUB or BLANK):

Enables summarizing of accounts. Only general ledger numbers with account type of M or BLANK are printed on the financial statements.

ACCOUNT TYPE = M is a master account and will be printed on the financial statement. The amount that will be printed will be the total of it and all immediately following 'S' (subaccounts) accounts. Only accounts with account type of M or blank are printed.

ACCOUNT TYPE = S is a SUB account of the preceding master account. The amounts for SUB accounts are added into the preceding master account and are not printed on the financial by themselves. All S's following an M are totaled into the preceding M account.

ACCOUNT TYPE = ' ' (blank) are printed as one line item and stop the totaling process for account types.

COLUMN TO PRINT:

Sub accounts do not print on financials.

Blank account, usually printed in column 1.

Master or totaling accounts 3 or higher usually printed in column 2.

Total assets and total liabilities are usually printed in column 3 on balance sheet.

COLUMN TO PRINT ON BALANCE SHEET (1, 2 or 3):

This field is only used when printing the Balance Sheet. It designates which column to print the amount on the Balance Sheet. If the column equals 1, the amount will be printed in the first column. Column equals 2, and the amount is printed in column 2. Column equals 3, and the amount is printed in column 3. This code does not affect any report other than the Balance Sheet. Readability

MTD BALANCE: Total (gross) of transactions for last period (current month) balance for this general ledger number updated from the last period close.

YTD BALANCE: Total (gross) of transactions for the year for this general ledger number. Current month transactions from the last period closed are added to the year to date balance when you close a period.

GL NUMBER RESTRICTIONS

See the sample data printout for an example. Use the sample data Company Chart of Accounts file for a guide on assigning these codes: See also Accounting for Dummies

Categories

You must use numbers here, no characters. Proper coding of the Company Chart of Accounts allows for consolidated and individual reporting of companies within a parent organization.

The x's represent the numbers that you fill in for the individual account. For example, 11010 would be an asset account.

1xxxx Assets

2xxxx Liabilities

25xxx Equities

3xxxx Revenue Sales (Oil/Gas/Other used to generate the revenue amounts on the Operating Statements.)

4xxxx Other Income (Income not disbursed through the Operating Statements.)

5xxxx Taxes/Deductions (Taxes/Deductions that are deducted from the revenue in printing of Revenue Statements.)

For Billable Expenses to Investors

If you want an Expense to be billed to Investors use these GL Numbers.

71xxx Expense Category 1

72xxx Expense Category 2

73xxx Expense Category 3

74xxx Expense Category 4

75xxx Expense Category 5

The description you enter for 71000, 72000, 73000, 74000 & 75000 will be printed on Operating Statements as a Category Heading for those types of Expenses. (The descriptions can be changed quickly anytime using Tool to Set Headings)

For Billable Company Charges to Investors

These accounts are billed as expenses to the owners but are treated as income for your company on the Unit P & L reports. Most operators use general ledger numbers 74171 to 74189 for their company charges to owners for items such as; administration for operating the wells, pumper, etc... To enter a company charge to Investors, you normally debit the expense (74171 to 74189) and credit income. Since these expenses normally repeat every month most folks use the Add Recurrent Transactions program then just append these as a group once each month.

The G/L Numbers used for Company Charges MUST be in sequence since the Unit P&L for Company Interest will ask for a Beginning and Ending G/L Number for Company Charges.

If you need to change your Company Charges for G/L Numbers so they are in sequence, use the Key Code Change program in Utilities under Data Tools. This utility will change the G/L Number in All files (G/L, Unit G/L, Transaction, YTD Transactions, etc...).

For Non-Billable Expenses to Investors

For expenses not to be billed to Investors use GL Numbers 76xxx to 99999. Usually items such as rent, office supplies, etc... are not billed to the Investors.

For Disbursable Revenue to Investors

For Revenue that is to be disbursed to Investors use GL Numbers (3xxxx). This is Revenue from run checks, etc... To enter a run check, you normally credit revenue (3xxxx) for the gross amount of the check, debit taxes and cost of sale (5xxxx) for the tax amount, and debit cash (1xxxx) for the net amount of the check.

For Disbursable Taxes/Deductions (from Sales of Oil/Gas/etc) to Investors

For taxes /deductions from revenue that is to be disbursed to the Investors use GL Numbers (5xxxx) This includes all owners; Override, Royalty and Working Interest.

For Income Not Disbursed to Investors

For income that is not to be disbursed to the Investors use GL Numbers (4xxxx). This is like Interest income or income from company charges to Investors, etc…

REQUIRED GL NUMBERS

The following general ledger numbers must exist in your Company Chart of Accounts for proper interaction.

11300-Accounts Receivable. Needed to make the automatic posting for all entries made through Accounts Receivable. Roughneck always debits or credits this account and never asks for this number. You only supply the general ledger number for the other half of the transaction.

21000-Accounts Payable. Just like Accounts Receivable.

21010-Suspense Revenue Withhold. When owners are coded as being on suspense, this account is used for their net revenue.

21011-Min. Check Amt. Withhold. When owner’s net revenue amount does not exceed the amount you specified for the minimum check amounts.

21040-Backup Withhold Taxes Payable. When owners or vendors do not provide Tax ID number.

21045-Nonresident State Tax Payable. California, New Mexico and Oklahoma require operators to collect state tax on nonresidents of their state. You should setup a new GL Number for each state. Ex: 21046- Oklahoma Non Resident Tax, 21047- New Mexico Non Resident Tax.

23200-Sales Tax Payable. Used in Accounts Receivable.

23300-Freight Payable. Used in Accounts Receivable.

23314-Reimbursement. This is a non-taxable Payroll reimbursement.

23334-Pre-Tax Deducation. This is a Pre-Taxable Payroll deducation.

25300-Retained Earnings, must be a Type 2. Used when the general ledger is zeroed and prepared for New Year. May be used to post beginning balance forward to general ledger.

29700-Current Net Income, Must be Type 1. Used to calculate current income on reports.

76320-JIB Offset. Used to offset expenses billed to owners when Operating Statements are updated.

76330-Revenue Offset. Used to offset revenue disbursed to owners when Operating Statements and checks are updated.

Note on JIB and Revenue Offset Numbers: When updating the Operating Statements, you need some type of offset account for both expenses and revenue. The expense offset is normally called the JIB offset and the revenue offset is surprisingly called the revenue offset. You do not have to use the numbers 76320 and 76330 for these two offset accounts. All other numbers above must exist as is (no changes).

REQUIRED GL NUMBERS FOR PAYROLL (if interactive)

Some folks don't want Payroll to be interactive, but most do.

If you elect to make Payroll interactive to the general ledger you must have the GL accounts for Payroll. These general ledger numbers may be modified using Setup Options under File on your tool bar. All payroll accounts are normally type 2.

To see or modify the GL Accounts required for Payroll

Select File -SetUp - Payroll Features