Generate Overhead

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1 Introduction
2 Run the Generate Overhead Process
3 Generate Overhead Report
4 Sample Calculations
5 Why was Overhead Missed when Running JIBU077 Calculate Overhead

Introduction

The Generate Overhead process calculates capital or operating overhead when run. During month end, the Overhead process is typically run after the Allocation process and before the Distribution process. The JIBU077 process creates a voucher that creates an entry to the overhead expense account with an offset to the overhead recovery account defined on the Overhead Links for the cost centre or AFE. More information on when to run the Generate Overhead process during month end can be found on the Month End Procedures Summary page.

If running the Final JV Month End process, the Overhead process will be run for both capital and operating overhead. Information available on the Final JV Month End wiki page.

An Overhead Controls link can only be processed once a month. When an Overhead Controls link is processed, the last Accounting Period is set on the Overhead Properties for the period overhead, and the link will not be processed again for that Accounting Period.

Run the Generate Overhead Process

To generate overhead, navigate to the menu and select Joint Interest Processing → Generate Overhead.

In this field...	Enter this information...

In this field...	Enter this information...
Organization ID	Enter the organization ID for whom you are running overhead or select from the Organizations List of Values. Multiple organizations can be entered followed by commas. Optional - If no value is entered, ALL organizations will be processed.
JOA Name (One/Many/All)	The name of the joint overhead agreement. To run against all overhead methods, leave this field blank.
Overhead Type (Operating/Capital)	Indicates whether capital or operating overhead will be generated. Valid values are: O - Operating overhead C - Capital overhead
Accounting Period End Date	The accounting period in which to generate overhead, in the format YY/MM.
Activity Date (YY/MM)	When running for operating overhead, this is the activity period that will be booked on the expense line. If calculating operating overhead by activity period, this value will not be applied to the expense line. This value is not required for capital overhead.

Generate Overhead Report

JIBU077 Generate Overhead output can be accessed through the Process Monitor.

Column	Calculation parameters

Column	Calculation parameters
AFE/CC Number	The AFE or cost centre ID.
AFE/CC Name	The AFE or cost centre description.
O/H Method Code	The overhead method code used on the transaction.
Calculation Type	The calculation type used on the overhead method, such as ‘flat rate’ or ‘well count’.
Actvy Period	The activity period.
Base Value	Gross cumulative expenditure less cumulative overhead amount.
Total O/H to Date	This is the total chargeable overhead based on the overhead method.
Total Expense to Date	The Base Value plus Total O/H to date.
Current Month Overhead	Total O/H to Date less Cumulative overhead amount (already charged).
Expense Account	The account in which overhead is booked to.
Recovery Account	The account in which overhead recovery is booked to.
Recovery Cost Centre	The cost centre in which overhead recovery is booked to.
OP O/H Calc Method	Calculation Method can be: A - Accounting Period C - Cumulative Difference

Sample Calculations

Sample Calculations on a Capital Overhead:

Assuming Period 19/07 is first month of overhead
Base Value ($10,940) = Gross expenditures ($10,940) - Cumulative O/H ($0)
Total O/H to Date ($547) = $10,940 * 0.05
Total Expense to Date ($11,487) = $10,940 + $547
Current Month Overhead ($547) = $547 + $0

Sample Capital Overhead Method used for this report:

Why was Overhead Missed when Running JIBU077 Calculate Overhead

If an Overhead is not charged when running the JIBU077 Generate Overhead process, check the following:

Review the JIBU077 Generate Overhead process accessible from the Process Monitor for any errors or warnings.
Cost Centres with a well statues of ABD (DRY AND ABANDONED) will not be considered when the overhead process is run.
If the Overhead Method has a value in Shut In Months and your Cost Centre is using that method and has a Well status of SI (Shut In) then the overhead is only calculated for however many months past the Shut In date that is indicated on the Method.
If the Overhead Method, Overhead Control, Overhead Agreement or Overhead Property has an expiry date, and the accounting period end date value in the overhead process submission is after the expiry date, the overhead will not be calculated.