Division Orders - REV110A

This program allows you to set up and maintain Revenue Division Orders.

You should set up the Division Order file in the Division Orders - REV110A program using a verified document such as a division order from land. It is wise to retain the information that you use as the source document for verification after you complete the setup.

The Division Order file is set up on a well-by-well basis. You can assign the division order number or allow the system to assign them sequentially. We recommend that you allow the system to assign the division order numbers because of the cross-referencing capability. Each division order has a description that you can use to call up the proper DOI for a particular well.

If the owners and the interests are the same for multiple products on a well, you can use product code `A'. When the actual gross sales are recorded, the proper product is recorded but the DOI used is for the `A' product. This feature eliminates the need to set up duplicate DOIs and helps reduce the size of the Division Order file.

The effective date should be the date from the division order or other source document. You use this date to check against the sale date when entering gross sales. For example, DOI #1 has an effective date of 01/01/84 and there is no DOI available with an earlier effective date (prior to 01/01/84). If you enter gross sales with sale dates of 11/30/83 or 12/31/83, a message displays stating that there is no DOI in effect for this period. You cannot continue unless you set up a DOI for the period in question or enter a later sale date.

If new ownership or revised percentages of ownership are required, you must set up a new division order. Enter an expiration date on the original division order and set up a new division order with an effective date as the date of the change. This establishes a range of sale dates which are valid for this division order. Sales falling outside of this range will be assigned to an earlier or later division order. If a division order has been used for distribution, you should not delete it because of possible future correction transactions.

You can set the Expire Permanently flag to disallow use of the division order by all processes. This is helpful in a case such as death of an owner where you do not want any transactions, including prior period corrections, to go to this DOI.

Use the DIV Orders Pay Code Mass Change - REV117 program to change division order pay codes for a specified owner. Mass changes of ownership may be processed on the DIV Orders Mass Change - REV116 program.

Enter owners on the DOI associated with the following required information:

Type Interest

The interest type for this owner on this well.

Exempt Code

The default exempt code set up on this owner in the Owner Detail - REV120 program is used, but you can override it.

Pay Code

The default pay code set up on this owner in the REV120 program is used but you can override it.

Component

The default code '%' is always used first. This should reflect the true revenue interest from the source document. All tax or expense components entered in gross sales data entry use this '%' component unless the %T is used here or the component is stated specifically with unique percentages. If an owner who is exempt from certain taxes is involved, you can use a separate component and the percentages can be adjusted to reflect the exempt status.

Percent

The interest amounts in decimal format which belong to the owner based on the source document. All components must total 1.00 (100%).

The capability to handle exempt owners is a very useful feature. Normally, the exempt portion of a particular component is handled by the deleted interest owner.

Multiple deleted interest owners are allowed. Any owner who is given a pay code with a status flag of `X' and is not this company or another insider company (as determined by the Owner Detail - REV120) program Insider No) is deemed to be a deleted interest owner and is used to determine the receiving interest on the well.

You can enter an owner multiple times on a Division of Interest, but you must have different interest types with each occurrence.

If several wells share the same owners and the same percentages, use the Division Order Duplication function `DUP' option in the function processor.