Joint Interest Billing User Guide

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Joint Interest Billing (JIB) Overview

Each selected transaction will be flagged as billable if the account to which the expense was allocated matches an existing DOI, and the DOI status is active. Otherwise, the transaction will be recorded as unbillable in the current period. Control reports showing billable and non-billable items will be generated. The sum of the billable and non-billable items should equal the total transactions in the billing cycle (i.e., the total of billable universe transactions).  

All billable transactions are summarized at the account level. These summary amounts are then allocated to each owner based upon their DOI percentage. Advance bill prepayments made by joint owners are used to offset the total amount due from the partners.  

Note: If JIB is in Dual Currency Mode, the JIB process will automatically occur in each currency.  

Control Features

• Accepts only posted transactions from the General Ledger module.  

• Accesses a user-defined table of billable account codes.  

• Verifies that the DOI effective date associated with the assigned bill code has been reached and that the DOI is active.  

• Flags all selected transactions to prevent double billing of transactions.  

• Maintains a complete detailed file of all unbillable transactions, which is automatically rolled forward for reprocessing the next month.  

• Provides control reports showing:  

  • All potentially billable transactions.  

  • Billable transactions.  

  • Unbillable transactions with reason code.  

  • Billing proof report showing all billable transactions and allocations to specific owners.  

• Allows initial processing output to be reviewed prior to invoice generation, giving the user the opportunity to make any necessary corrections.  

• Generates a Prepayment analysis report which shows:

  • All advance billings generated.

  • Prepayments received on advance bills.  

  • Offsets to prepayments.  

  • Remaining prepayment balance for each owner at the AFE/Property level.  

• During the Create JIB Journals process, JIB generates:  

  • Summary listing of all computer-generated journal entries.

  • Invoice register.

  • Final control report recapping all JIB activity for the month.  

• The JIB module uses the following invoice number sequence:

Modules to Set Up Before JIB

Export to Excel Feature

Some screens in this module may have an Export to Excel button incorporated in the screen or an Export to Excel  icon in the toolbar.  The user can click on this button or icon to export the raw report data directly to an Excel spreadsheet, bypassing the report.  This feature is useful as it allows clients to use Excel features (for example, pivot tables, etc.) to organize the data as desired.  

Ownership Menu

Ownership functions allow the user to establish owners and define division of interest . Using these functions, input the ownership information necessary to process Joint Interest Billings and maintain name and address information on all joint interest partners.  

Functions in the Ownership menu include:  

• Ownership Administration  

• Division of Interest  

Ownership Administration  

Use Ownership Administration for the maintenance of owner name and address records. It provides the option to add, change, or delete a name and address record. Each record is specified by an owner ID and contains names, tax IDs, addresses, and telephone numbers.  

Open

Processing with Ownership Administration    

Select Ownership Administration from the Ownership menu. The screen consists of a header and a tab section. The tab section contains two tabs:  Owner and Address.  

Open

• Owner – To create a new owner, enter a unique user-defined code to identify the owner. The code may be alphanumeric. To edit an existing owner, enter the owner code, or use the Spyglass button to search. 

The Owner Tab

Open

• Name 1 – Enter the name of the owner.  

• Name 2 – Enter a second line of the name, if applicable.  

• Abbreviation – Enter the abbreviated name for the owner. This abbreviated name will be displayed on both the Division of Interest and Accounts Receivable screens.  

• Tax ID – Enter the tax ID for the owner.  

• Contact – Enter a contact name for the owner.  

• Comments – Enter comments about the owner. This field is for user information only and will not be referred to anywhere in the system.  

• Insider/Outsider – Click to indicate if the owner is an insider or outsider. Any owner ID that is used to identify a company whose accounting is being performed by IFS IDEAS is an insider. Any other owners are outsiders. JIB creates accounting entries to record insider’s share of expenses. An outsider’s share is recorded as an accounts receivable.  

Address Tab

Open

• Street 1 – Enter the first line of the owner’s remittance address.  

• Street 2 – Enter the second line of the owner’s remittance address.  

• City – Enter the city for the owner’s remittance address.  

• State – Enter the state for the owner’s remittance address.  

• Postal Code – Enter the postal code for the owner’s remittance address.

• Country – Enter the country for the owner’s remittance address

• Contact – Enter a contact name for a person at the remittance address.  

• Telephone – Enter the telephone number for the owner’s remittance address.

• Fax – Enter a fax number for the owner’s remittance address.

• Email – Enter an e-mail address for the owner’s remittance address.  

Open

• Street 1 – Enter the first line of the owner’s correspondence address.  

• Street 2 – Enter the second line of the owner’s correspondence address.  

• City – Enter the city for the owner’s correspondence address.  

• State – Enter the state for the owner’s correspondence address.  

• Postal Code – Enter the postal code for the owner’s correspondence address.  

• Country – Enter the country for the owner’s correspondence address.  

• Contact – Enter a contact name for a person at the owner’s correspondence address.  

• Telephone – Enter a telephone number for the owner’s correspondence address.  

• Fax – Enter a fax number for the owner’s correspondence address.  

• Email – Enter an e-mail address for the owner’s correspondence address.

• Copy Address – Click on this button to copy the address information from the remittance address to the correspondence address.  

Open

• Company – Enter the desired company or entity; use the Spyglass button to search.  

• AFE Number – Enter the AFE number or use the Spyglass button to search.  

• Bill Code – Enter the bill code number or use the Spyglass button to search.  

• Description – A description of the bill code will display automatically.  

• Effective Date – Enter the effective date for the DOI.  

• Status – The owner’s status automatically displays on the screen. If defining a new DOI, the status will default to active. To change the status, select Active or Inactive.  

• Total Interest – This field is automatically updated after each billing interest percentage is entered.  

• Working Interests – Use the grid to input data about the working interests of this DOI.  

• Owner ID – Enter the owner ID number for the working interest partners, or double-click a blank field in the column to search.  

• Name – The owner’s abbreviated name will be displayed automatically.  

• Owner Status – Enter the owner status, or double-click a blank field in the column to search. When Joint Interest Billing is processed, active owners will be billed for their share of expenses and the amounts are recorded on an accounts receivables account. Inactive owners will be automatically assigned a billing interest of 0.0000.  

• Billing Interest Percent – Enter the billing interest percentage of each owner (.0001 –1).  

• Insider/Outsider – The Insider/Outsider status of the owner, as defined in the Owner Administration, will be displayed.  

• Billing Currency D/L – If using a dual currency system, enter either base currency or local currency. The owner will be billed in this currency.   

Once all selections have been made, click the Save button .  

• C reate Initial JIB  

• R eset JIB  

• Cash Call  

• Cash Call Payment  

• P rocess Cash Calls  

Processing with Create Initial JIB  

Select Create Initial JIB from the JIB menu.  

Open

• Company – Enter the desired company or entity; use the Spyglass button to search. Once a selection is made, a description of the company or entity appears automatically.  

• Period – Enter a period number or make a selection from the drop-down list.  

• Year – Enter the desired year.

• Pass – This field will be equal to the number of times the Initial JIB was run (increments by 1 from 0 for each time run).  

Open

• Company – Enter the desired company or entity; use the Spyglass button to search. Once a selection is made, a description of the company or entity appears automatically.  

• Period – Enter a period number or make a selection from the drop-down list.  

• Pass – This field will be equal to the number of times the Initial JIB was run (increments by 1 from 0 for each time run).    

Cash Call

• Cash Call  

• Cash Call Payment  

• Process Cash Calls  

Select Cash Call from the JIB menu.  

Open

• Company – Enter a valid company or entity; use the Spyglass button to search.  

• Currency – Enter the appropriate currency, or use the Spyglass button to search.  

• Period – Enter the accounting period for the cash call.  

• Year – Enter the accounting year for the cash call.  

• AFE – Enter the appropriate AFE or use the Spyglass button to search.  

• Bill Code – Enter the appropriate Bill Code or use the Spyglass button to search. Once the AFE and Bill Code combination has been entered, IFS IDEAS will search the DOI tables and locate the owners assigned to the AFE/Bill Code combination. The Owner Allocation grid will be populated based on the predefined DOI percentages.

• Bill Code Description – The bill code description will display after the Bill Code is selected.  

• Cash Call Number – For new cash calls, leave the default of <New>. IFS IDEAS will create a cash call number on the save of this screen. To review an existing cash call number, select it from the drop-down list.  

• Cash Call Amount – Enter the amount of the cash call. Once the amount is entered, the Allocated Amount column in the Owner Allocation grid will be populated with the allocated amount equal to the Cash Call Amount * Allocated Interest Percent.  

• Reallocate – If the calculated Allocated Amount is not what is desired, the Allocated Interest Percent can be modified in the grid. The sum of the percentages must equal 100%.  After modifying the Allocated Interest Percent, click the Reallocate button to recalculate the Allocated Amounts in the grid.  

• Invoice Date – Enter the invoice date, or choose the date from the calendar.

• Due Date – Enter the due date, or choose the date from the calendar.  

• Cash Call Description – Enter a description for the cash call.    

• Owner Allocation grid – The Owner Allocation grid will display information after the AFE/Bill Code combination has been entered. The information is pulled from the DOI tables. Owners can be changed, deleted, or added to the grid. The Allocated Interest Percent can be changed, and the cash call amount can then be reallocated.  

  • Owner ID – Lists the various owner IDs associated with the DOI.

  • Name – The short name for the owner ID.  

  • Billing Interest Percent – The billing percent recorded in the DOI for each owner. Note that the operator owner is not included in the owners for the cash call.  

  • Billing Currency (D/L) – The billing currency recorded in the DOI.  

  • Allocated Interest Percent – Calculated by dividing the percent that the billing interest percent is to the total billing interest percent. For example, if a DOI was split evenly between four owners at 25% and one of the owners was the operator, the operator would be excluded and each remaining owner would be invoiced for their portion of the remaining percentage (25% / 75% = 33.3333%). The calculated amount can be changed and reallocated.  

  • Allocated Amount – This amount is the result of the total cash call amount multiplied by the allocated interest percentage.  

• Status – The Cash Call can be saved and reviewed or modified at a later date . Once the Cash Call has been approved, it should be marked as Complete. This makes the Cash Call available to create an invoice.  
  

Open

• Company – Enter a valid company or entity; use the Spyglass button to search.  

• Currency – Enter the appropriate currency, or use the Spyglass button to search.  

• Owner – Enter the Owner that the payment is from, or select it from the drop-down list.  

• Period – Enter the accounting period for the payment.  

• Year – Enter the accounting year for the payment.  

• Payment Number – For new payments, leave the default value of <New>.  To review a previously entered payment, enter the payment number, or select it from the list.  

• Reallocate – If changes are made to the payment information in the Cash Call Payment Allocation grid, use the Reallocate button to recalculate the Allocated Payment Amounts.  

• Payment Date – Enter the payment date, or select the date from a calendar.  

• Reference – This is a free-text field to enter descriptive information about the payment.  

• Total Cash Call Amount – Informational field showing the total amount of the cash call for this owner.  

• Total Amount Paid – Informational field to show the amount received to date against the cash call.  

• Total Current Prepay Balance – Informational field to show the balance left to receive for the cash call.

• Status:  

  • Complete – When Complete is marked, the payment is then available to be evaluated by JIB during monthly JIB processing.  

  • Journalized – Informational field indicating that the Cash Call Payment has been journalized to the GL.  

  • Journal ID – Informational field indicating the journal used to record the Cash Call Payment on the GL.  

  • Converted Journal ID – Informational field indicating the converted journal used to record the Cash Call Payment on the GL if multiple currency are defined.  

• Cash Call Payment Allocation Grid – After the Company/Currency/Owner is indicated, the Cash Call Payment Allocation grid will display the details of the Cash Call. When the Payment Amount field is entered, the Allocated Payment Amt fields in the grid are populated. Modifications can be made to the payment amounts. To apply those changes, click the Reallocate button.

  • AFE – The AFE used in the cash call.  

  • Bill Code – The Bill Code used in the cash call.  

  • Cash Call Amount – Total amount of the original cash call.  

  • Total Previous Amount Paid – The sum of all payments to date for this cash call by AFE/Bill Code combination.  

  • Unpaid Amount – The difference between the cash call amount and the total previous amount paid.  

  • Allocated Payment Amt – The amount received for the current Cash Call Payment. This is automatically populated then the Payment Amount field is entered.  This cell can be modified.  

  • Balance – The difference between the Unpaid Amount and the Allocated Payment Amt.

Open

• Company – Enter the appropriate company or entity; use the Spyglass button to search. Users may also add all entities to the process by checking the All Entities box.  

• Period – Enter the period the journal will be created in, or select the period from the list.  

• Year – Enter the year the Cash Call Payment was created in.  

• Journalize:  

  • Preview – Executes the process and generates a report to review the journal that will be created. No journal is created on the GL.  

  • Finalize – Mark the Finalize option to create the journals on the GL. A journal report will also print with this selection.  

• Cross Check Report  

• DOI Reports  

• JIB Reports  

• Name and Address Report  

• Gross\Net Analysis Report  

• Cash Call Invoices Report  

• Cash Call Status Report  

Cross Check Report  

The Cross Check Report allows users to create a report that verifies that the total billable items selected by the JIB system agrees to the data posted during the period.  

Select Cross Check Report from the Reports menu. 

Open

• Company – Enter the appropriate company or entity; use the Spyglass button to search.  

• Period – Enter the desired period number, or make a selection from the drop-down list.  

• From Bill Code – Enter the desired bill code, or use the Spyglass button to search.  

• Thru Bill Code – Enter the desired Thru Bill Code, or use the Spyglass button to search.  

• Currency Base/Local – Check one or both check boxes as desired.  

Once all selections have been made, click the Print Preview  button to generate the report in a Crystal Reports viewer. When you are finished, use the Exit button to close the JIB Cross Check Report window.  

• DOI Ownership Report – This report prints the current DOI information for a specific AFE/property or range of AFE/properties. All bill codes and the associated owner percentages are printed for each AFE/property.  

• DOI Maintenance Report – This report prints DOIs that have been created or modified since the last time this report was printed. Included are the owner ID, name, status, and billing interest percentage.  

Processing with Division of Interest Reports

Open

• Company – Enter the appropriate company or entity; use the Spyglass button to search.  

• From AFE – Enter the desired beginning AFE, or use the Spyglass button to search.  

• To AFE – Enter the desired ending AFE, or use the Spyglass button to search.  

• Reports – Check the box( es ) of the report(s) to produce.  

  • DOI Ownership – Check this box to print the DOI Ownership report.  

  • DOI Maintenance – Check this box to print the DOI Maintenance report.  

• Billable Universe – This report organizes all selected joint interest billing transactions by AFE/property, bill code, and account number. Detail information provided for each item includes accounting month, voucher number, vendor name, invoice number, date, description, and amount.  

• Billable Items – This report is organized by AFE/property, bill code, and account numbers. Detail information provided for each item includes accounting month, voucher number, vendor name, invoice number, date, description, and amount.

• Unbillable Items – This report is organized by AFE/property, bill code, and account numbers.

• Pre-Invoice Proof – A proof report is generated to show all billings prior to invoice printing. The report presents all billable costs, allocated costs, and remaining prepayments for each owner. If errors are discovered by the user, the JIB cycle can be rerun.  

• Pre-Invoice Proof – This report is organized by AFE/property, bill code, and owner number.  

Note: If running a dual currency JIB, separate reports will be generated for base and local currency. The reports may not reconcile if non-convertible transactions were posted in one currency and not the other.  

Open

• Company – Enter the appropriate company or entity; use the Spyglass button to search.  

• Period – Enter the desired period number, or make a selection from the drop-down list.  

• Base Currency – Check this box to print reports in base currency depending on the JIB processing mode.  

• Local Currency – Check this box to print reports in local currency depending on the JIB processing mode.  

• Reports – Check the box( es ) of the reports to produce. Available options are:  

  • Billable Universe

  • Billable Items  

  • Unbillable Items  

  • Pre-Invoice Proof  

  • All 

• Pass – Lists all the available passes run for the period.  

• Name and Address – I nformation for a specific owner ID or range of owner IDs.  

• Name and Address Maintenance – This report contains all name and address records that have been modified since the last time you printed the report.  

Open

• From Owner – Enter the From Owner ID, or use the Spyglass button to search.  

• To Owner – Enter the To Owner ID, or use the Spyglass button to search.  

• Reports – Check the box( es ) of the report(s) to produce. These are Name and Address and Name and Address Maintenance.

Select G ross\Net Analysis Report from the R eports menu.  

Open

• Company – Enter the appropriate company or entity; use the Spyglass button to search.  

• Account – Select billable accounts to be included in the JIB Gross\Net Analysis Report using the Spyglass button. If an account is added to the report in error, use the Remove button to make a correction.  

• Segment – Use the Spyglass button to select the financial database Segment to be included in JIB Gross\Net Analysis Report. If a segment is added to the report in error, use the Remove button to make a correction.

• Include Only Billable Items – This box allows the user to choose whether to include non-billable and billable items or just billable items.  

• Date Selected – This date is used as the effective date for the JIB Gross\Net Analysis Report. Select One or Multiple Periods, Range of Periods, or All Periods.  

• Beginning Period – This field becomes active when Range is selected. Enter the beginning period number for the report.

• Ending Period – This field becomes active when Range is selected. Enter the ending period number for the report.

• Period – This field becomes active when One or Multiple is selected. Enter the desired period, and press the Tab key to move the period to the report. If a period is added to the report in error, use the Remove button to make a correction.  

Open

• Company – Enter the appropriate company or entity; use the Spyglass button to search.  
  

• Period – Enter the period from which to print the cash call.  

• Year – Enter the year from which to print the cash call.  

• Send Email to Owner – If SQL Mail is configured on the SQL Server, checking this box will send an email containing the invoice to each of the owners.  

Open

• Company – Enter the company or entity; use the Spyglass button to search.  Select all entities by checking the All Entities box.  

• Currency – Enter the currency, or use the Spyglass button to search.

• Period – Enter the accounting period to run the report for it, or select it from the list.  

• Year – Enter the accounting year to run the report for it.

• Owner – Select the owners to display on the report. Check the All Owners box to select all owners, or use the Spyglass button to select one or more owners.  

Once all selections have been made, click the Print Preview  button to generate the report in a Crystal Reports viewer. When you are finished, use the Exit button  to close the Cash Call Status Report window.  

F inalize Menu

• J ournalization ( Create JIB Journals)  

• F inalize Statement  

Open

Open

• Company – Either type in a company or entity number, or click on the Spyglass to select one from the pop-up window. The pop-up window includes a search feature for your convenience.  Once you make a selection, a description of the company or entity appears automatically.  

• Period – Type in a period number, or click on the drop-down arrow and select one from the list.  

• Pass – This field matches the number of times the Initial JIB ran for that period.  

Open

• Company – Enter the appropriate company or entity; use the Spyglass button to search.  

• Period – Enter the desired period, or make a selection from the drop-down list.  

• Suppress Detail – To print only the total amount for each cost category on the attachments, click Yes. To print both the detail lines and category totals, click No.  

• Suppress YTD/CTD – To suppress the printing of year-to-date and cumulative-to-date amounts on the invoices, click Yes. To print the invoices with year-to-date and cumulative-to-date amounts, click No.  

• Print Billing Currency Only – To suppress the printing of the invoices and attachments in both currencies (dual-currency JIB only), click Yes. The invoices and attachments will be printed in the billing currency as indicated in the D ivision of Interest function. To print the invoices and attachments in both currencies click No.  

• Pass – Lists all the passes that ran for the period.  

• B ill Code Table Administration  

• C reate Statement Writer Files  

• J IB Master Entity-Owner Map        

  
  

B ill Code Table Administration  

• Company – Enter the appropriate company or entity; use the Spyglass button to search.  

• From Billing – Enter the From Billing code. Users may also click a blank field in the grid and use the Spyglass button to search.  

• Thru Billing – Specify the Thru Billing code. Users may also click a blank field in the grid and use the Spyglass button to search.  

• To Billing – Specify the To Billing code. Users may also click a blank field in the grid and use the Spyglass button to search.    

Open

• Company – Enter the desired company or entity; use the Spyglass button to search. 

• Period – Enter a period number or make a selection from the drop-down list.  

• Pass – This field matches the number of times the JIB ran for that period.  

1. Define the JIB ledger – which includes defining all the elements (start position, prefix, etc …).  

2. Define the period list for the JIB ledger.  

3. Define the 9 segments for the JIB ledger.  

1. Define the elements in the Define Element Positions program.  The start position entered here for the elements must be the exact start position entered for the elements in GL.  

2. Populate the tk_misc table with the 9 segments defined in GL.

J IB Master Entity-Owner Map  

Open

• Company – Enter the appropriate company or entity; use the Spyglass button to search.  

• Owner – Enter the owner ID or double-click the field in the grid to search.  

• Code – Enter the desired Code or double-click the field in the grid to search.  

The user may select to use the table to map the entity-owner for the JIB Ledger by checking the box at the top of the window.  

To run the J IB Master Entity-Owner Map Files, click the Save button .  

Use the Utility menu for the control and maintenance of the JIB module. These functions are used primarily during system setup and at year-end.

Functions on the drop-down menu include:

• JIB Processing Parameters

• Cutback Account Administration

• Purge Unbilled Items

• Year End Process

• JIB Journal Administration

• Define Element Positions

• JIB Miscellaneous

JIB Processing Parameters

• Parameters

• Base Currency

• Local Currency

Open

• Entity – Enter the desired company or entity; use the Spyglass button to search.  

Open

• Mode – This refers to the billing and journalization options available for Joint Interest Billing.  There are three billing modes. For each billing mode, there are associated journalization modes. Click to select one of the billing and journalization modes described below.  

• Dual Currency Billing – This billing mode allows owners to be billed in a selected base or local currency. JIB bills will be prepared for each owner in the owner's selected currency. The billing currency election is made for each AFE/property-bill code and owner in the Division of Interest Administration screen. The two journalization modes for Dual Currency Billing are:  

  • JE Billing Currency – This journalization mode creates two converting journals. One is for amounts billed in the base currency, and the other is for amounts billed in the local currency. The journals are flagged to convert at the billing date rate.  

  • JE Source and Converted Currencies – This journalization mode creates four non-converting journals, one for each type of data included in the billing. The journals are: base currency source, base currency converted, local currency source, and local currency converted.  

• Single Currency Billing – This billing mode bills all owners in the base currency. The three journalization modes for Single Currency Billing are:  

  • Single Currency System – This journalization mode is used for single currency systems where no converted transactions exist. One base currency journal is prepared. No conversion flag is available in single currency systems.

  • Convert JIB Journals – This journalization mode is used for dual currency systems. One base currency journal is prepared. This journal is flagged to convert at the billing date rate.

  • Do Not Convert JIB Journals – This journalization mode is used for dual currency systems. One base currency journal is prepared. This journal is flagged for no conversion.  

• Expended Currency Billing – This billing mode prepares two bills for each owner. One bill contains all items which were transacted in the base currency. The second bill contains all items which were transacted in the local currency. There is only one journalization option for Expended Currency Billing.  

  • JE Billing Currencies and Converted Currencies – This journalization mode creates two converting journals. One is for amounts billed in the base currency, and the other is for amounts billed in the local currency. The journals are flagged to convert at the billing date rate.  

• Options – This is used to designate the base and local currencies; an accounting method; and an option to include AFE and bill codes of all zeros.  

  • Base Currency – Enter the base currency or make a selection from the drop-down list. Once a selection is made, a description of the base currency displays automatically.  

  • Local Currency – Enter the local currency or make a selection from the drop-down list. Once a selection is made, a description of the local currency displays automatically.

  • Accounting Method – Click to select one of the accounting methods described below:  

    • Net Accounts – This accounting method should be selected to record the operator’s net share in separate net accounts. JIB calculates the net amount as the operator’s working interest times the gross cost. An example of the Net Accounts method calculation follows:

•  

  •  

    • Offset Gross – This accounting method should be selected to record the amount when combined with the gross amount yields the operator’s net share. JIB calculates the net amount as the non-operators working interest times the gross cost ( times –1 ). Using the offset gross amount, net amount reports are prepared by adding the offset amount to the gross costs. An example of the Offset Gross method calculation follows: 

• Include Zero AFE or Bill Code in JIB – By default, JIB excludes AFE and Bill Codes of all zeroes (for example: AFE 00000 and Bill Code 00). If billable costs are charged to these codes, the checkbox Include Zero AFE and Bill Code in JIB should be marked.  

• Include Zero for AFE in JIB – JIB includes AFE of all zeroes (for example:  AFE 00000).  

• Include Zero for Bill Code in JIB – JIB includes Bill Codes of all zeroes (for example:  Bill Code 00).  

• ART Invoicing in Journalization – This check box is only visible if both Joint Interest Billing (JIB) and Accounts Receivable Trade (ART) are installed.  Mark this check box to use ART to manage JIB invoices.  If this is checked, the owners in JIB must also be defined as customers in ART with the same owner/customer ID.  Once this box is checked and the setup is complete, then JIB invoices produced by the journalization process will be created in ART .  If the box is not checked, then ART is ignored during the journalization process and no JIB setup is required in ART .    JIB will then process as if ART is not present.   

• Promotion Income - This check box is un mark ed by d efault . Checking t his box allows the user to account for the income of promoters. The promotion income feature can be used in cases when a promoter of a production operation takes a percentage off the top before distributing revenue. Note that the non- promoters’ total percentage should still total 100%. For example, if the p romoter got 5% of profits, the d ivi sion of i nterest would be 105% (100% non-promoter and 5% promoter) . The excess over 100% represents the promoter’s income and should go to the Promotion Income account on the operator’s books. If this check box is marked, it will enable the Promotion Income Account field in the C utback Account Administration screen for this purpose .  

• Define AR Cutback FQA Elements -   Three outcomes are possible depending on whether this check box and if the ART Invoicing in Journalization check box were marked:

Open

• Source – Select the source segment(s) using the Spyglass button. If a segment is added to the parameters in error, use the X button to make a correction.  

• Converted – Select the converted segment(s) using the Spyglass button. If a segment is added to the parameters in error, use the X button to make a correction.  

Local Currency

Open

• Source – Select the source segment(s) using the Spyglass button. If a segment is added to the parameters in error, use the X button to make a correction.  

• Converted – Select the converted segment(s) using the Spyglass button. If a segment is added to the parameters in error, use the X button to make a correction.  

Use C utback Account Administration from the U tility menu to establish the accounts and/or departments to be used during the JIB journal creation process. Amounts are allocated from detail expense accounts and/or departments to specified owners. Based on the status of these owners, amounts are recorded on the defined accounts and/or departments on the ledger.  

Open

• Pre-Payment Account – This is the operator's account used to record advance bills generated by the operator to working interest partners.  

• Suspended A/R Account – This captures receivable accounts due from owners that are in an inactive status.  

• Pre-Paid Expense Account – This is the account used to record prepayments made to a related company operator.  

• Accounts Receivable Account – This is the operator's receivables account for outside working interest partners on invoices generated by advance billings or JIB processing.    

• Promotion Income Account – This captures the promotion income when a DOI greater than 100 percent is established. The charges may be recorded on the operator's books as income or a reduction in the basis of the AFE/property for the amount over 100 percent. 

• Cash Call Account – The account used to capture the amount generated by the cash call process.  

• Revenue Distribution Account – This account captures amounts owed to partners when revenue is realized by the JIB process.  

• Default Distribution Account – This is used as the default account if no distribution account is specified for an account receiving a JIB charge.  

• Default Distribution Department – This is used as the default department if no distribution department is specified for a department receiving a JIB charge.  

• Cutback Account – This is a contra-account of the expense accounts. This account records the amounts billed to joint owners and transferred to the operator's own ledger accounts. The cutback account maintains the integrity of the ledger while allowing the detail accounts to retain historical records of expenditures.  

• Distribution Accounts – This allows the user to specify accounts to allocate the operator's portion of billable expenditures. For defined ranges of detail accounts, JIB will transfer the operator's share to the corresponding distribution account.  

• Distribution Departments – This allows the user to specify departments to allocate the operator's portion of billable expenses. For defined ranges of detail departments, JIB will transfer the operator's share to the corresponding distribution department.  

• Intercompany Accounts – These are the Intercompany receivables and payables accounts for the operator and related (inside) entities.   

• Setup Parameters

• Distribution
  

Each tab contains three sub tabs.  

Open

• Company – Enter the desired company or entity; use the Spyglass button to search.  

• Owner – Enter the desired owner, or use the Spyglass button to search.  

Open

The Setup Parameters Tab

• Base Currency Accounts

• Local Currency Accounts

• Defaults

Open

• Pre-Payment Account – Enter the pre-payment account, or use the Spyglass button to search.  

• Suspended A/R Account – Enter the suspended A/R account, or use the Spyglass button to search.  The Suspended AR fully qualified account ID that appears by default in this field is determined by whether the ART Invoicing in Journalization and Define AR Cutback FQA Elements check boxes are marked. Refer to the Parameters Tab subsection under the J IB Processing Parameters section for additional details.  

• Pre-Paid Expense Account – Enter the pre-paid expense account, or use the Spyglass button to search.  

• Accounts Receivable Account – Enter the account receivable account, or use the Spyglass button to search.  The AR fully qualified account ID that appears by default in this field is determined by whether the ART Invoicing in Journalization and Define AR Cutback FQA Elements check boxes are marked. Refer to the Parameters Tab subsection under the J IB Processing Parameters section for additional details.  

• Promotion Income Account – To enable this field, the Promotion Income check box on the J IB Processing Parameters screen must be checked. Refer to the Promotion Income bullet in the Parameters Tab subsection under the J IB Processing Parameters section for detailed information.  Enter the promotion income account, or use the Spyglass button to search.  

• Cash Call Account – Enter the cash call account or use the Spyglass button to search.  

Local Currency Accounts Sub Tab

Open

Open

• Pre-Payment Account – Enter the pre-payment account or use the Spyglass button to search.  

• Suspended A/R Account – Enter the suspended A/R account or use the Spyglass button to search.  The Suspended AR fully qualified account ID that appears by default in this field is determined by whether the ART Invoicing in Journalization and Define AR Cutback FQA Elements check boxes are marked. Refer to the Parameters Tab subsection under the J IB Processing Parameters section for additional details.  

• Pre-Paid Expense Account – Enter the pre-paid expense account or use the Spyglass button to search.  

• Accounts Receivable Account – Enter the account receivable account or use the Spyglass button to search.  The AR fully qualified account ID that appears by default in this field is determined by whether the ART Invoicing in Journalization and Define AR Cutback FQA Elements check boxes are marked. Refer to the Parameters Tab subsection under the J IB Processing Parameters section for additional details.  

• Promotion Income Account – To enable this field, the Promotion Income check box on the J IB Processing Parameters screen must be checked. Refer to the Promotion Income bullet in the Parameters Tab subsection in the J IB Processing Parameters section for detailed information.  Enter the promotion income account, or use the Spyglass button to search.  
  

• Cash Call Account – Enter the cash call account or use the Spyglass button to search.

• Revenue Distribution Account – Enter the revenue distribution account, or use the Spyglass button to search.  

Defaults Sub Tab

Open

• Balance Sheet Cutback Account – Enter the balance sheet cutback account, or use the Spyglass button to search.  

• Profit and Loss Cutback Account – Enter the profit and loss cutback account, or use the Spyglass button to search.  

• Distribution Accounts – Check the Use Distribution Accounts box. Or, to use the original account, check Do Not Use Distribution Accounts (Use Original Account). The user will then be able to select Use the Default Account or Use the Original Account. If Use the Default Account is selected, enter the Default Distribution Account, or use the Spyglass button to search. 

• Distribution Departments – Check the Use Distribution Departments box to use the distribution departments. Or, check the Do Not Use Distribution Departments (Use Original Distribution) box to use the original department. The user will then be able to select to use the default department, if desired. If the default department is selected, enter the Default Distribution Department or use the Spyglass button to search. 

Distribution Accounts Sub Tab

Open

• Start of Range – Specify the start of the account range, or double-click the field to search.  

• End of Range – Use one of the above methods to specify the end of the account range.  

• Distribution Stat Account – Use one of the above methods to specify the distribution account.

Distribution Departments Sub Tab

Open

• Start of Range – Enter the start of the department range or double-click the field to search.  

• End of Range – Enter the end of the department range or double-click the field to search.  

• Distribution Cost Center – Enter the distribution cost center or double-click the field to search.  
  

Open

• Related Company – Enter the company or entity; double-click the field to search.  

• Base Currency Stat Account – Enter the base currency account or double-click the field to search.  

• Local Currency Stat Account – Enter the local currency account or double-click the field to search.  

Purge Unbilled Items

Select Purge Unbilled Items from the Utility menu.

Open

• Company – Enter the company or entity; use the Spyglass button to search.  

• Period – Enter the desired period number, or make a selection from the drop-down list.  

• Base Currency – Check this box to see unbilled items in the base currency.  

• Local Currency – Check this box to see unbilled items in the local currency.  

• Purge All Items – Check this box to purge all unbilled items.  

• Purge – To purge the unbilled item displayed, type Y or Yes. If the item should not be purged, leave blank, type N or No.  

• AFE – The text boxes in this column display AFE/property numbers.  

• Bill Code – The text boxes in this column display bill code numbers.  

• Account – The text boxes in this column display accounts numbers.  

• Department – The text boxes in this column display department or cost center numbers.  

• JE Number – The text boxes in this column display the journal ID and journal batch number.  

• Line Number – The text boxes in this column display the line number from the journal entry.  

• Vendor – The text boxes in this column display the Vendor ID if the item is from the Accounts Payable module.  

• Invoice – The text boxes in this column display the invoice date and invoice ID if the item is from the Accounts Payable module.  

• Date – The text boxes in this column display the invoice date if the item is from the Accounts Payable module.  

• Amount – The text boxes in this column display the unbilled item amount.  

Use JIB Year End Processing to clear billed transactions for all periods (1-12). In addition, unbilled transactions for periods 1-11 are cleared. Period 12 unbilled transactions are retained for processing in period 1 of the next year. JIB Year End Processing also resets year-to-date JIB invoice totals and next available invoice numbers.  

Select Y ear End Process from the U tility menu.  

Open

Use J IB Journal Administration . The JIB mode specified in the J IB Processing Parameters screen determines whether a particular journal is required.  

Processing with J IB Journal Administration Screen  

Select J IB Journal Administration from the U tility menu.   

Open

• Company – Enter the desired company or entity; use the Spyglass button to search.  

• Cutback Journals – Define the journal IDs to be used during the JIB journalization process. The JIB mode specified in the J IB Processing Parameters screen determines whether a particular journal is required.  

  • Base Currency Source – Enter the desired base currency source, or use the Spyglass button to search.

  • Converted – Enter the desired converted base currency or use the Spyglass button to search.  

  • Local Currency Source – Enter the desired local currency source or use the Spyglass button to search.  

  • Converted – Enter the desired converted local currency or use the Spyglass button to search.  

• Cash Call Payment Journals – These journals are used to enter Cash Call information. The JIB mode specified in the J IB Processing Parameters screen determines whether a particular journal is required.  

Use D efine Element Positions to specify the start and element position for each of five elements, including Company, Account, Department, AFE, and Bill Code. JIB Processing requires that you have a minimum of four elements, including Company, Account, AFE, and Bill Code.  

Open

Note: Because element definitions are specific to your business needs, the number of elements and the names of your elements may be different from what is displayed on the screen. For example, instead of an element named AFE, you may have an element named AFE/Property.  

• Start Position – For each element, type in the number of the start position. If you are not using a Department element, input zero into the Start Position.  

• Element Position – For each element, type in the number of the element position. If you are not using a Department element, input zero into the Element Position.  

JIB M iscellaneous

Open

Account Codes  

The Account Codes menu item allows users to create and edit valid FQAs (fully qualified accounts) for each offset account in the AR Account in the JIB module.

Open

• Ledger – Select a ledger from the drop-down list.  

• Action – Select the Add New FQA radio button or the Edit Existing FQA radio button from this group box. If adding a new FQA, the grid will populate with blank fields for entry. If editing an existing FQA, the grid will populate with the FQAs already in the system. If no FQAs were previously defined for the selected ledger, the grid will be blank.  

• Code – If creating a new FQA, enter a desired code. This field should not be left blank. Once a fully qualified account code has been saved, this field will no longer be editable.  

• Element Columns – The element columns that appear in the grid will differ depending on the elements associated to your fully qualified account. In the screenshot example above, the selected ledger’s FQA elements are ACCOUNT, COSTCENTER, AFE, and BILLING, but yours may be different depending on what was defined. See below for an example of how to fill out these fields. These fields should not be left blank.  

  • ACCOUNT – The user may enter a valid account ID or double- click  in this field to choose from the list of available accounts. This field should not be left blank.  

  • COSTCENTER – The user may enter a valid cost center code or double-click in this field to choose from the list of available cost center codes. This field should not be left blank.  

  • AFE – The user may enter a valid AFE code or double-click in this field to choose from the list of available AFE codes. This field should not be left blank.  

  • BILLING – The user may enter the desired billing code or double-click in this field to choose from the list of available billing codes. This field should not be left blank.