How To Inactivate a Royalty Obligation

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Introduction

You may choose to inactivate royalty obligations when you have to complete a royalty review process or an audit review. This helpful feature allows you to set up obligations to test potential changes, etc. without having to book into financial before testing is complete.

Royalty Obligation Maintenance

The Active flag is displayed on the royalty obligation grid next to the Obligation #.

The Active flag can be found to the right of the Obligation # when creating or editing a royalty obligation.

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Add/Edit a Royalty Obligation

The Active flag defaults to Yes when a new royalty obligation is created. The status of the flag can be changed when creating or editing an obligation.

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All screen validations will still be performed regardless of whether the royalty obligation is active or not.

Copy Royalties

The Active flag has been added to the Source and Destination grids of the Copy Royalties screen (Royalties → Freehold/Override/IOGC → Copy Royalties).

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Step Processing

Inactive non-TIK royalty obligations will still be calculated as part of Step 6, and will appear on various Qbyte Optix royalty calculation reports (indicating that they are inactive) so that you can review and test as needed.

• If a previously booked (active) royalty obligation is made inactive in an amendment month, the previously booked obligation will be reversed out on the financial voucher, but the inactive obligation will not be re-booked.

• If an inactive royalty obligation is made active in an amendment month, the newly activated royalty obligation will appear on the financial interface voucher with no reversal (since the inactive obligation would not have been originally booked).

For inactivated TIK royalties, the royalty will still be calculated as part of Step 2, but the splits will not be impacted. The Royalty Calculation Details report will not show the distribution of the expense. You may validate the results by utilizing various Qbyte Optix royalty calculation reports (if required).

During Step 2 (TIK royalties) and Step 6 (non TIK royalties), if any errors occur on an inactive royalty obligation they will be still be displayed as an Error in the Message Centre, but processing will continue.

Month End Processing

Inactive royalty obligations will be copied to the new month during the Month End process, and will remain as inactive.

Qbyte Optix Reports

Royalty Obligation Details 

Inactive royalty obligations will now have an Active flag next to the Royalty Type in the Royalty Obligation Details report.

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• The Active status is displayed next to the Royalty Obligation Type Name column when Exported to Excel without Template.

Royalty Calculation Details

Inactive royalty obligations will now have an Active flag below the Royalty Type in the Royalty Calculation Details report.

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• The Active status is displayed next to the Royalty Tax Type Name column when Exported to Excel without Template.

Royalty Calculation Summary

The Royalty Calculation Summary report now has a new Include Inactive Obligations reporting option. This reporting option defaults to No. 

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If the selected criteria contains inactive royalty obligations, they will only be displayed in the report when the Include Inactive Obligations reporting option is set to Yes. 

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• The Active status is displayed next to the Taken In Kind column when Exported to Excel without Template.

Royalty Owner Summary

Inactive royalty obligations will not be included on a financial voucher whether Preliminary or Final, and subsequently will not appear in the Royalty Owner Summary report.

IOGC Gas/Oil Statements

IOGC royalties flagged as inactive will not be included in the IOGC gas/oil royalty statements or CSV files.