Pricing Monthly Processing
- IFS Energy and Resources (Deactivated)
- IFS Energy & Resources
- Former user (Deleted)
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Overview
For Operated properties, you must enter pricing information for each applicable purchaser/contract that is set up in the Market Master that has volumes processed through it. STEP03 - Pricing will calculate the value for each purchaser/contract and allocate it down to the appropriate participants. Purchaser/contract pricing information is entered on the Pricing screen, which is accessed from the Explorer when an applicable facility is highlighted.
Instead of using the Pricingscreen, there are a few options to import pricing information using the Import Data By Template functionality. To enter all contract-level pricing information, including Price/Value, Transportation, and Pricing Deductions you can use the MMCONTRACTPRICING or MMCONTRACTPRICINGBYDESC template. Alternatively, for contracts already set up to use a Price Per Unit, the MMCONTRACTUNITPRICE or MMCONTRACTUNITPRICEBYDESC template can be used to import just a Price Per Unit.
Another option when setting up pricing information at a purchaser/contract level is to use a Default Price entered at the delivering facility for the specific product. Default prices can be entered several ways:
at each delivering facility using the Pricing screen
at multiple delivering facilities within the same Control Group using the Control Group Pricing screen, accessible from the Explorer when a control group is highlighted.
at multiple delivering facilities using the Import Data By Template functionality and import template FACILITYDEFAULTPRICE .
Considerations
When entering pricing data, there are several factors to take into account:
Sales Value, based on entered pricing data, is required to be reported to some provincial governments and other regulatory agencies monthly. There are rules for each government/agency as to what the Sales Value must represent, such as what deductions applied to the purchaser price can and cannot be used when reporting sales value/price.
Sales Value or Average Sales Price may be used in Royalty Obligations and IOGC Royalty calculations, and there are royalty agreements that will specify what the Sales Value and/or Average Sales Price must represent.
Transportation Value, based on entered pricing data, is required to be reported to some provincial governments and other regulatory agencies monthly. There are rules for each government/agency as to what the Transportation Value must represent. This is referred to as Crown Allowable transportation.
Transportation, as defined by the various regulatory agencies, is typically transportation costs paid to a third party to transport volumes to the sales point, and is not therefore included as a price deduction by the purchaser. Transportation is a separate cost and therefore must be reported separately.
Transportation Value may be used in Royalty Obligations and IOGC Royalty calculations, and there are royalty agreements that will specify what the Transportation Value must represent.
Sales Value is used in the Financial Interface process that generates the Voucher data that is sent to a Financial Accounting system.
Clients may want to book Transportation entered on the pricing screen.
Clients may want to book one or more purchaser pricing deductions separately to capture those expenses in more detail.
Typically, for the various regulatory reporting requirements, deductions made by the purchaser to their Base Price for purchased volumes are allowed to be included when reporting the Sales Price or Sales Value. These deductions are referred to as Crown Allowable. However, depending upon the purchaser and property, there may be some deductions that are not deemed Crown Allowable or that may need to be reported separately from the price. It is up to the clients to understand the regulatory requirements for their properties and how the information they receive from purchaser statements should be interpreted for entry into Qbyte Metrix.
Sample Purchaser Statement
Shipper | Battery | Volume | Density | Sulphur | Base Price | Quality | Tariff | Line Loss | Other | Net Price | Total Value |
|---|---|---|---|---|---|---|---|---|---|---|---|
QBYTE | RLT1 | 125.2 | 830.5 | 0.66 | 540.05 | 4.90 | 16.35 | 1.25 | 0.00 | 517.55 | $64,797.26 |
QBYTE | RLT2 | 500.0 | 830.5 | 0.66 | 540.05 | 4.90 | 16.35 | 0.00 | 8.45 | 510.35 | $255,175.00 |
The following examples use the above Sample Purchaser Statement:
Example#1 - Entering Net Price
For most clients, the price data entered in Qbyte Metrix reflects the Net Price provided by the purchaser and there would be no pricing deductions entered. In this case, because the purchaser was also the transporter at the one battery (RLT2), the entered price should be Base Price less Quality, Tariff and Line Loss, but not Other. The Other deduction should be entered as the Transportation, so it is reported correctly on regulatory submissions. To book the Transportation entered on the Pricing screen, the client must set the applicable Book XXX Pricing Transportation (where XXX is the represents the product type Oil, Gas or By-product) option on the Region - Financial Configuration screen.
Shipper | Battery | Volume | Entered Price | Entered Transportation | Entered Quality Adj. | Entered Tariff | Entered Line Loss | Entered Other#1 | Entered Other#2 | Sales Value | Sales Value Less Transportation | Base Sales Value |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QBYTE | RLT1 | 125.2 | $517.55 | $64,797.26 | $64,797.26 | $64,797.26 | ||||||
QBYTE | RLT2 | 500.0 | $518.80 | $8.45 | $259,400.00 | $255,175.00 | $259,400.00 |
The financial entries created, with typical booking, would be as follows:
Battery | General Type | Specific Type | Volume | Value | Debit Account | Credit Account |
|---|---|---|---|---|---|---|
RLT1 | SALE | 125.2 | $64,797.26 | Accounts Receivable | Oil Sales | |
RLT2 | SALE | 500.0 | $259,400.00 | Accounts Receivable | Oil Sales | |
RLT2 | TRAN1 | 500.0 | $4225.00 | Transportation Expense | Accounts Receivable |
Example#2 - Entering Pricing Deductions and Transportation
In addition to regulatory reporting and royalty calculations, another consideration is how the client wants to book sales on the Financial Voucher. Some clients may want to book one or more of the purchaser deductions separately instead of booking net sales value. As an example, assume that we want to book Tariff costs as an expense. In this scenario, the price entered in Qbyte Metrix should reflect Base Price less the deductions for Quality and Line Loss. The Tariff should be entered as the Tariff deduction and the Other deduction should be entered as the Transportation.
Shipper | Battery | Volume | Entered Price | Entered Transportation | Entered Quality Adj. | Entered Tariff | Entered Line Loss | Entered Other#1 | Entered Other#2 | Sales Value | Sales Value Less Transportation | Base Sales Value |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QBYTE | RLT1 | 125.2 | $533.90 | $16.35 | $64,797.26 | $64,797.26 | $66,844.28 | |||||
QBYTE | RLT2 | 500.0 | $535.15 | $8.45 | $16.35 | $259,400.00 | $255,175.00 | $267,575.00 |
The financial entries created, with typical booking, would be as follows:
Battery | General Type | Specific Type | Volume | Value | Debit Account | Credit Account |
|---|---|---|---|---|---|---|
RLT1 | SALE | 125.2 | $66,844.28 | Accounts Receivable | Oil Sales | |
RLT | TARF | 125.2 | $2,047.02 | Tariff Expense | Accounts Receivable | |
RLT2 | SALE | 500.0 | $267,575.00 | Accounts Receivable | Oil Sales | |
RLT2 | TARF1 | 500.0 | $8,175.00 | Tariff Expense | Accounts Receivable | |
RLT2 | TRAN1 | 500.0 | $4225.00 | Transportation Expense | Accounts Receivable |
Example#3 - Entering Pricing Deductions Without Transportation
For this example, we will use the same Sample Purchaser Statement, but we will modify the assumption that Other represents transportation costs and assume it is some other Crown Allowable cost. In addition, we will we want to book both the Tariff and Other deduction as separate expenses. In this scenario, the price entered in Qbyte Metrix should reflect Base Price less the deductions for Quality and Line Loss. The Tariff should be entered as the Tariff deduction, and the Other deduction should be entered as the Other#1 deduction.
Shipper | Battery | Volume | Entered Price | Entered Transportation | Entered Quality Adj. | Entered Tariff | Entered Line Loss | Entered Other#1 | Entered Other#2 | Sales Value | Sales Value Less Transportation | Base Sales Value |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QBYTE | RLT1 | 125.2 | $533.90 | $16.35 | $64,797.26 | $64,797.26 | $66,844.28 | |||||
QBYTE | RLT2 | 500.0 | $535.15 | $16.35 | $8.45 | $255,175.00 | $255,175.00 | $267,575.00 |
The financial entries created, with typical booking, would be as follows:
Battery | General Type | Specific Type | Volume | Value | Debit Account | Credit Account |
|---|---|---|---|---|---|---|
RLT1 | SALE | 125.2 | $66,844.28 | Accounts Receivable | Oil Sales | |
RLT | TARF | 125.2 | $2,047.02 | Tariff Expense | Accounts Receivable | |
RLT2 | SALE | 500.0 | $267,575.00 | Accounts Receivable | Oil Sales | |
RLT2 | TARF1 | 500.0 | $8,175.00 | Tariff Expense | Accounts Receivable | |
RLT2 | OTHRD11 | 500.0 | $4225.00 | XXXX Expense | Accounts Receivable |
1 - Accounts Receivable should be credited to have the value in the Accounts Receivable account reflect the net value the purchaser paid for the volumes.
Pricing
The Pricing screen is accessed from the Explorer when an applicable facility is highlighted. To modify data on this screen, the user must have Full Access to the PricingEdit security component.
The Disposition grid is populated by the Market Master setup, and all data in the grid is display-only. The contents of the Disposition grid can be sorted and/or filtered as required to make data entry easier. Highlighting a Disposition will display all associated purchaser/contracts in the Purchasers grid.
Action Buttons include Close, Save, Revert, and View Detail. The View Detail button can be used to display Market Master details for the selected Purchaser to help remind the user what the purchaser/contract represents. The View Details button is enabled when one, and only one, Purchaser is selected in the Purchasers grid.
Purchasers
The Purchasers grid is where the pricing options are set up for each applicable purchaser/contract set up on the Market Master. The Purchasers grid can have many columns, so the following picture shows all of them at once to make it easier to review.
PURCHASERS GRID | |
|---|---|
Field | Description |
Purchaser Type | Display-only. This field is populated from Market Master. |
Purchaser ID | Display-only. This field is populated from Market Master. |
Purchaser Name | Display-only. This field is populated from Market Master. |
Seq# (Sequence Number) | Display-only. This field is populated from Market Master. |
Contract Description | Display-only. This field is populated from Market Master. |
Rev. Rec (Receive Revenue) | Display-only. This field is populated from Market Master. |
Volume | Display-only. This field is populated from STEP02 - Sales and Transfers processing. |
GJs | Display-only. This field is populated from STEP02 - Sales and Transfers processing. |
Price Code | This field indicates the method of calculation for the Value associated with the purchaser/contract. Available options include:
Note: During STEP03 - Pricing processing, the calculated value for the purchaser/contract (regardless of Price Code) will be allocated down to the participants based on their corresponding volume or alternatively their corresponding GJs when the product is Gas or Raw Gas, and the facility has Gas Revenue Type = Gigajoule. |
Input Price | Enter this value when the Price Code is Price Per Unit.
|
Value | Enter this value when the Price Code is Total Contract Value.
|
Value Net of Dedns | Display-only field, calculated on the screen and will contain the Value (whether entered or calculated) less any pricing deduction values calculated on the screen (Quality Value, Tariff Value, Line Loss Value, Other#1 Value, Other#2 Value). |
UserDefined1 | This is a user-defined field. It is a text field for capturing additional information about the purchaser/contract. This field is different from fields on the Market Master for the purchaser/contract like Contract Reference or Contract Description, in that this field is carried through on calculated data associated with the purchaser/contract. Therefore, it is available on the Production and Sales Distribution Details and Partner Production and Sales Distribution Details reports (when exported to Excel unformatted). Example: One possible use of this field would be to enter a code that can be used to r econcile a specific purchaser statement with the sales volume and value calculated within Qbyte Metrix. Note: The column heading defaults to UserDefined1 but can be changed by the User Defined Labels tab (Administration → System Configuration → User Defined Labels).
|
Trans. Type | This field indicates the method of calculation for Transportation costs associated with the purchaser/contract. Transportation has a very specific definition in each of the different provincial jurisdictions depending upon the product. In general, Transportation entered here is reserved for Crown Allowable transportation costs that must be reported on the appropriate provincial regulatory reports:
For those provinces and/or products that do not have regulatory reporting requirements of Transportation, users are free to use this field to represent costs that they would like to capture. Note: Transportation entered here is typically for the above-mentioned regulatory reporting only unless the Book Pricing Transportation = Yes on the Region Maintenance - Financial Configuration screen. In this case, the transportation cost can be booked during the STEP07 - Financial Interface and Financial Interface (Final) processes. Available options include:
Note:
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Transportation | Enter the Rate or Total Amount of Transportation.
Note:
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Trans. Value | Display-only field, calculated on the screen and will contain the value of Transportation based on the data entered on the Pricing screen. This will be calculated based on the entered Rate, Total Amount or Default Rate. Note: This value will not take into account System Configuration options to use Default Transportation Rates when Rate or Total Amount is selected but not entered. For example, if purchaser has Trans. Type = Rate and the entered Rate = 0, the Trans. Value column will be 0, regardless of the Use Default Trans. Rate when Rate is Zero option in System Configuration - Function Implementation. Note:
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Crown Allow. Deductions | The following columns should be populated only when booking of pricing deduction costs is required.
|
Quality Adj. Type | This field indicates the method of calculation for Quality Adjustments costs associated with the purchaser/contract. Available options include:
|
Quality Cost | Enter the Rate or Total Amount of Quality Adjustment.
|
Quality Value | Display-only field, calculated on the screen. It will contain the value of Quality Adjustment based on the data entered on the Pricing screen. This will be calculated based on the entered Rate, Total Amount, or Default Rate. Note: This value will not take into account System Configuration options to use Default Quality Adj. Rates when Rate or Total Amount is selected but not entered. For example, if purchaser has Quality Adj. Type = Rate and the entered Rate = 0, the Quality Value column will be 0, regardless of the Use Default Pricing Dedn. Rate when Rate is Zero option in System Configuration - Function Implementation. Note:
|
Tariff Fee Type | This field indicates the method of calculation for Tariff costs associated with the purchaser/contract. Available options include:
|
Tariff Cost | Enter the Rate or Total Amount of Tariff Fee.
|
Tariff Value | Display-only field, calculated on the screen. It will contain the value of Tariff Fee based on the data entered on the Pricing screen. This will be calculated based on the entered Rate, Total Amount or Default Rate. Note: This value will not take into account System Configuration options to use Default Tariff Fee Rates when Rate or Total Amount is selected but not entered. For example, if purchaser has Tariff Fee Type = Rate and the entered Rate = 0, the Tariff Value column will be 0, regardless of the Use Default Pricing Dedn. Rate when Rate is Zero option in System Configuration - Function Implementation. Note:
|
Line Loss Type | This field indicates the method of calculation for Line Loss costs associated with the purchaser/contract. Available options include:
|
Line Loss | Enter the Rate or Total Amount of Line Loss.
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Line Loss Value | Display-only field, calculated on the screen. It will contain the value of Line Loss based on the data entered on the Pricing screen. This will be calculated based on the entered Rate, Total Amount or Default Rate. Note: This value will not take into account System Configuration options to use Default Line Loss Rates when Rate or Total Amount is selected but not entered. For example, if purchaser has Line Loss Type = Rate and the entered Rate = 0, the Line Loss Value column will be 0, regardless of the Use Default Pricing Dedn. Rate when Rate is Zero option in System Configuration - Function Implementation. Note:
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Other#1 Fee Type | This field indicates the method of calculation for Other#1 Fee costs associated with the purchaser/contract. Available options include:
|
Other#1 Cost | Enter the Rate or Total Amount of Other#1 Fee.
|
Other#1 Value | Display-only field, calculated on the screen and will contain the value of Other#1 Fee based on the data entered on the Pricing screen. This will be calculated based on the entered Rate, Total Amount or Default Rate. Note: This value will not take into account System Configuration options to use Default Other#1 Fee Rates when Rate or Total Amount is selected but not entered. For example, if purchaser has Other#1 Fee Type = Rate and the entered Rate = 0, the Other#1 Value column will be 0, regardless of the Use Default Pricing Dedn. Rate when Rate is Zero option in System Configuration - Function Implementation. Note:
|
Other#2 Fee Type | This field indicates the method of calculation for Otrher#2 Fee costs associated with the purchaser/contract. Available options include:
|
Other#2 Cost | Enter the Rate or Total Amount of Other#2 Fee.
|
Other#2 Value | Display-only field, calculated on the screen and will contain the value of Other#2 Fee based on the data entered on the Pricing screen. This will be calculated based on the entered Rate, Total Amount or Default Rate. Note: This value will not take into account System Configuration options to use Default Other#2 Fee Rates when Rate or Total Amount is selected but not entered. For example, if purchaser has Other#2 Fee Type = Rate and the entered Rate = 0, the Other#2 Value column will be 0, regardless of the Use Default Pricing Dedn. Rate when Rate is Zero option in System Configuration - Function Implementation. Note:
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Default Pricing
The Default Pricing portion of the screen is where any Default Prices , Default Transportation Rates and Default Pricing Deduction Rates (Quality Adj., Tariff Fee, Line Loss, Other#1 Fee and Other#2 Fee) can be entered. Only products applicable to the selected facility will be displayed. (Products with an Allocation Method of Balance Only will not be displayed.) Typically, these would be entered when one or more of the purchaser/contracts in the Purchasers grid was set up to use a Default Price or a Default Rate. However, there are some other scenarios in which defaults may be useful or even required.
Defaults may be entered as a back-up for entered Prices, Values and/or Rates. There are a few System Configuration - Function Implementation options that can be set up to provide a back-up that is used within STEP03 - Pricing processing to ensure that there is some value associated with the purchaser/contracts.
Use Default Facility Price when Unit Price is Zero - When this is Active, purchaser/contracts that are set up to use Price Per Unit but that had no Input Price entered (remains 0) will be priced using the Default Price, if entered.
Use Default Facility Price when Total Contract Value is Zero - When this is Active, purchaser/contracts that are set up to use Total Contract Value but that had no Value entered (remains 0) will be priced using the Default Price, if entered.
Use Default Trans. Rate when Rate is Zero - When this is Active, purchaser/contracts that are set up to use Rate for Trans. Type but that had no Transportation entered (remains 0) will have the Transportation calculated using the Default Transportation Rate, if entered.
Use Default Trans. Rate when Total Amount is Zero - When this is Active, purchaser/contracts that are set up to use Total Amount for Trans. Type but that had no Transportation entered (remains 0) will have the Transportation calculated using the Default Transportation Rate, if entered.
Use Default Pricing Dedn. Rate when Rate is Zero - When this is Active, purchaser/contracts that are set up to use Rate for any of the pricing deductions (Quality Adj., Tariff Fee, Line Loss, Other#1 Fee, Other#2 Fee) but that had no corresponding rate entered (remains 0) will have the Pricing Deduction XXXXXX calculated using the corresponding Default XXXXX Rate, if entered.
Use Default Pricing Dedn. Rate when Total Amount is Zero - When this is Active, purchaser/contracts that are set up to use Total Amount for any of the pricing deductions (Quality Adj., Tariff Fee, Line Loss, Other#1 Fee, Other#2 Fee) but that had no corresponding total amount entered (remains 0) will have the Pricing Deduction XXXXXX calculated using the corresponding Default XXXXX Rate, if entered.
For more information, see System Configuration - Function Implementation.
Default Oil Price and Rates may be required for Royalty Obligations and Manitoba Crown/Freehold Production Tax calculations in those scenarios where there is Oil production but no Oil sales in a month.
For Royalty Obligations, the following Royalty Calculation Factors make use of entered defaults:
Price: Average Unit - For Oil royalties at an entity that has Oil production but no sales, the average unit price is calculated by using the entered Default Price for Oil (at the producing battery). The various entered default pricing deductions are then deducted from the Default Price. Average Unit Price = Default Price less Default Quality Adj. Rate less Default Tariff Fee Rate less Default Line Loss Rate less Default Other#1 Fee Rate less Default Other#2 Fee Rate.
Price: Average Unit Net of TC - For Oil royalties at an entity that has Oil production but no sales, the average unit price is calculated by using the entered Default Price for Oil (at the producing battery). The various entered default pricing deductions are then deducted from the Default Price. Average Unit Price Net of TC = Default Price less Default Quality Adj. Rate less Default Tariff Fee Rate less Default Line Loss Rate less Default Other#1 Fee Rate less Default Other#2 Fee Rate less Default Transportation Rate.
Control Group Pricing
This screen will display all the applicable products at all facilities within the Control Group hierarchy. The data is the same as in the Default Pricing section of the Pricing screen, but this allows the user to enter defaults at more than one facility at a time. To modify data on this screen the user must have Full Access to the PricingEdit security component.
Import Data By Template
Price Per Unit at Purchaser/Contract
There are two Templates (Spreadsheet Import#MMCONTRACTUNITPRICEMMCONTRACTUNITPRICE and MMCONTRACTUNITPRICEBYDESC ) that can be used to import prices for contracts. These templates can only be used to update prices for contract with Price Code = Price Per Unit.
For more information on generating and importing data using these two templates, see:
Default Price, Transportation Rate and Pricing Deduction Rates
The Template Spreadsheet Import#FACILITYDEFAULTPRICEFACILITYDEFAULTPRICE can be used to import facility/product defaults for Price, Transportation Rate and the various pricing deductions (Quality Adjustment, Tariff, Line Loss, Other#1 and Other#2).
For more information on various methods for generating and importing data using this template, see:
Financial Booking of Pricing Deductions
Pricing deductions (Quality Adjustment, Tariff Fee, Line Loss, Other#1, Other#2), if entered, will automatically be included in the Financial Interface, and will require appropriate Entry Definitions created. Although the Entry Definitions can be set up with Entry Required = No for those entries that the user does not want to book, it is suggested that you do not bother entering a pricing deduction unless you want to book it as there would be little value to entering the deduction if it was not going to be booked. There may still be instances where you don't want to book the pricing deduction for all types of records created. For example, if Alberta Oil Crown is priced using Defaults you may get deduction cost entries being created for Alberta Oil Crown which you don't want to book since Alberta takes their crown in-kind.
Each deduction type will have its own General Type within Entry Definitions.
Quality Adjustment - QLTY
Tariff Fee - TARF
Line Loss - LNLS
Other#1 - OTHRD1
Other#2 - OTHRD2
For each deduction type there are a few potential entries that may be created.
Specific Type | Comment |
|---|---|
When the Specific Type is blank, the entry is for the deduction cost associated with the sale of an entity partner's portion. | |
CRWN | The entry is for the deduction cost associated with the delivery of Alberta Oil Crown. Note: These entries are only generated when the province is Alberta and the product is OIL, OILH, or WCOND. |
INJ | The entry is for the deduction cost associated with the sale of Load Oil. Note: These entries are only generated when the product is OIL, OILH, or WCOND. |
RLO | The entry is for the deduction cost associated with the sale of Recovered Load Oil. Note: These entries are only generated when the product is OIL, OILH, or WCOND. |
ROYT | The entry is for the deduction cost associated with the sale of an entity's royalty taken-in-kind portion. |
Sample Booking
For this example, we have the following data:
Sales Value | Tariff Cost | Other#1 Cost |
|---|---|---|
100.00 | 2.25 | 1.00 |
Typically, SALE entries are booked to Debit some sort of Accounts Receivable and Credit a Sales account. The SALE entries will be created using what we are calling Base Sales Value. The Base Sales Value is the Sales Value with all pricing deductions (Tariff Cost and Other#1 Cost, in this example) added in. Note: Sales Value is always the adjusted value, taking into account pricing deductions, as that is the value required for the various Regulatory reports and royalty/crown calculations.
Debit Account | Debit Value | Credit Account | Credit Value |
|---|---|---|---|
Accounts Receivable | 103.25 | Oil Sales | 103.25 |
To book a pricing deduction we need to reduce the Accounts Receivable, because we did not receive the Base Sales Value from the purchaser. So, we want to book the pricing deduction entries to Debit some sort of Expense account and we need to Credit the Accounts Receivable.
Debit Account | Debit Value | Credit Account | Credit Value |
|---|---|---|---|
Tariff Expense | 2.25 | Accounts Receivable | 2.25 |
Other#1 Expense | 1.00 | Accounts Receivable | 1.00 |
This results in the following account totals:
Account | Debit Value | Credit Value |
|---|---|---|
Accounts Receivable | 100.00 | |
Oil Sales | 103.25 | |
Tariff Expense | 2.25 | |
Other#1 Expense | 1.00 |
Oil Transportation in British Columbia
The way in which Oil Transportation Cost is calculated for batteries in British Columbia is quite different than in other provinces regarding how the transportation is applied to volumes being sold.
For receipt Oil at each individual entity/owner (Participant Type = Working Interest Owner Transfer), Qbyte Metrix looks first to the Producing Battery associated with the receipt to find how the Transportation is to be calculated by looking for Market Master Purchaser records for Battery-to-Battery Transfers from the Producing Battery.
When Market Master Purchaser found at Producing Battery using a Transportation Rate and a non-zero rate is entered, then that rate is applied to the entity/owner receipt volume sold at the Selling Battery.
When Market Master Purchaser found at Producing Battery using a Transportation Rate and a zero rate is entered, and the Function Implementation Use Default Trans. Rate when Rate is Zero is Active, and the Producing Battery has a non-zero Default Transportation Rate entered for Oil, then the Default Transportation Rate is applied to the entity/owner receipt volume sold at the Selling Battery.
When Market Master Purchaser found at Producing Battery using a Transportation Type = Default Rate and a non-zero Default Transportation Rate is entered for Oil, then the Default Transportation Rate is applied to the entity/owner receipt volume sold at the Selling Battery.
When Market Master Purchaser found at Producing Battery using a Transportation Type = Total Amount and a non- zero amount is entered, then the total amount is associated with the entity/owner receipt volume sold at the Selling Battery.
If, after processing the Market Master records at the Producing Battery, there is still no transportation cost calculated for the entity/owner receipt volume, OR the sales volume is for a non-Working Interest Owner Transfer volume, Qbyte Metrix will then look at the Market Master at Selling Battery.
When Market Master Purchaser found at Selling Battery using a Transportation Rate and a non-zero rate is entered, then that rate is applied to the entity/owner receipt volume sold at the Selling Battery.
When Market Master Purchaser found at Selling Battery using a Transportation Rate and a zero rate is entered and the Function Implementation Use Default Trans. Rate when Rate is Zero is Active and the Selling Battery has a non-zero Default Transportation Rate entered for Oil, then the Default Transportation Rate is applied to the entity/owner receipt volume sold at the Selling Battery.
When Market Master Purchaser found at Selling Battery using a Transportation Type = Default Rate and a non-zero Default Transportation Rate entered for Oil, then the Default Transportation Rate is applied to the entity/owner receipt volume sold at the Selling Battery.
When Market Master Purchaser found at Selling Battery using a Transportation Type = Total Amount and a non- zero amount is entered, then the total amount is associated with the entity/owner receipt volume sold at the Selling Battery.
For other provinces, the same method for calculating Transportation Cost is used for each entity/owner associated with the Market Master Purchaser (contract). Because of this consistency, a Transportation Total Amount can be prorated down to all entity/owners associated with the contract. However, as you can see from the above, in British Columbia it is possible for entity/owners in the same contract to have their Transportation Cost calculated in different ways. Due to this, there is no proration of the Transportation Total Amount possible. The use of Transportation Total Amount is technically possible, but it is rare that the Transportation Total Amount will be allocated correctly. The use of Transportation Total Amount would work correctly only if the contract had only one entity/owner per Producing Battery associated with it. That one entity/owner would get the full Transportation Total Amount. When there is more than one entity/owner, the entire Transportation Total Amount is applied to each one.
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