How To Book Skim Oil Revenue at Injection Facilities

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1 Introduction
2 Skim Oil Set Up in Facility Charges

Introduction

Skim Oil refers to small amounts of oil entrained in water volumes received at Injection Facilities. Certain Petrinex Injection Facility Subtypes allow for these Skim Oil volumes to be delivered out without identifying which facilities the volumes were received from. In these cases, revenue received for these Skim Oil volumes can be booked back to the well level based on water volumes received at the Injection Facility. This can be done through Facility Charges set up at an Injection Facility that is linked to a Control Group.

Skim Oil Set Up in Facility Charges

Facility Charges - Charge Type

Setting up a new Charge Type within Facility Charges to be used for Skim Oil revenue booking is recommended.

Financial Definitions - Entry Definitions

A new Entry Definition will need to be created in Financial Definitions to ensure the Skim Oil Charge Type will be booked to the appropriate accounts. In our example case, we are debiting Accounts Receivable and crediting Oil Sales as that is how we typically book oil revenue, including revenue for Skim Oil.

Facility Charges - Global Formulas

A new Global Formula will be required in Facility Charges, which will then be used as the formula for our Skim Oil revenue Facility Charge. The formula itself will be set up to multiply by a fixed value factor of 1, as we don’t actually want the formula to do anything. It is the formula criteria that will allow the Skim Oil revenue to be booked.

The required criteria for this formula are:

Primary Retrieval Type must be Receipts: Water Volume by WIO (F97)
Volume Definition must be Main Prorated by Input
Value Definition must be Global Rate Input

Facility Charge Maintenance - Injection Facility Attached to Control Group

Now, the new Facility Charge can be set up at the Injection Facility attached to our Control Group.

The Product will be Water, the Charge Type will be the new one that was set up for Skim Oil and the Formula ID will be the new Global Formula that was set up for Skim Oil.

Facility Charges - Monthly Factor Input

The Skim Oil revenue Facility Charge will require two Monthly Factor Inputs to be entered on a monthly basis. The first one is for the Skim Oil Volume and the second one is for the Skim Oil Price.

Monthly Factor Input - Skim Oil Volume

A Skim Oil Volume Monthly Factor Input will be required. The Factor will be set up in the Factors tab within the Control Group Facility Charges. This is a one-time set up and only the factor itself is required to be updated each month.

The Factor Level should be Facility Charge Level with the Facility Type set to Injection Facility and the Input Type set to Input Volume. If Input Type is greyed out, change the Input to Yes and then select the Input Type.

The Product, Charge Type, Injection Facility ID and Sequence Number should match those in the Facility Charges set up under the Injection Facility.

The Factor will be an input value each month and will be the Skim Oil Volume for which revenue needs to be booked. This volume does not automatically populate with the oil volume delivered out of the injection facility. It must be entered as a Factor each month.

This Factor will be entered under the Facility Charges Monthly Factor Input, accessed through the main menu.

Monthly Factor Input - Skim Oil Price

A Skim Oil Price Monthly Factor Input will be required. The Factor will be set up in the Factors tab within the Control Group Facility Charges. This is a one-time set up and only the factor itself is required to be updated each month.

The Factor Level should be Facility Charge Level with the Facility Type set to Injection Facility and the Input Type set to Input Rate. If Input Type is greyed out, change the Input to Yes and then select the Input Type.

The Product, Charge Type, Injection Facility ID and Sequence Number should match those in the Facility Charges set up under the Injection Facility.

The Factor will be an input value each month and will be the Skim Oil Price that should be booked for the current month.

This Factor will be entered under the Facility Charges Monthly Factor Input, accessed through the main menu.

Monthly Factor Input - Skim Oil Value

If booking total Skim Oil Value is preferred instead of booking by price, a few changes to the set up will be required.

Under Facility Charges Global Formulas, the Value Definition must be Global Value Input Prorated. All other settings in the Global Formula will remain the same as the previous set up instructions.

In the Facility Charge Factors in the Skim Oil Value Factor that you’ve set up, the Input Type must be Input Value. All other settings in the Facility Charge Factor will remain the same as the previous set up instructions.

A separate Skim Oil Volume Factor is still required with no changes to the previous set up.

The Factor will be an input value each month, the same as the others. This one will be the total Skim Oil Value that should be booked for the current month. The total Value will be prorated back to the wells based on Volume.

This Factor will be entered under the Facility Charges Monthly Factor Input, accessed through the main menu.

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