Default Revenue Cross-References by State

Default Cross References

The BACK STORY

Unfortunately, purchasers have and use their own well numbering system codes for wells, and they don’t care about us. The purchaser’s well number codes do not match the well numbers you’ve got set up in your SSI Oil and Gas Accounting Software. To make it easier for you to enter revenue, SSI uses RP01 – Cross References. The purchaser’s well number on the check detail cross-references to the well number you have assigned in SSI. When revenue is entered, you can enter revenue directly from what’s on the check stub (the purchaser’s number) and it knows (by the cross reference) the well number in SSI to which it equates. No hand-coding the check detail with the corresponding SSI well numbers. Utilizing cross-references makes revenue entry much faster.

And by the way – revenue templates (RP03I) use the same cross references as direct entry into RP03. It’s easy to see how using cross references is huge as a time-saver.

Which brings us to…DEFAULT CROSS REFERENCES.

Today we’re going to talk about DEFAULT Revenue Cross References. Everyone’s got at least one. Default Revenue Cross References are kinda like a standardized cross reference pattern. When initially setting up a cross reference in RP01/WM04 – Cross Reference Maintenance – a DEFAULT cross reference appears with what SSI has determined as typically used settings and flags. The idea is that when you add a new revenue cross reference for a well, SSI has a DEFAULT cross reference format so that you don’t have to fill out every single option and flag on the screen for the new revenue cross reference. Only change what’s applicable to this new cross reference. EZier, faster, and for consistency with all applicable criteria and responsibilities.

But you are in charge of your own destiny.

Let’s take it one step further and hone in on using default cross references by STATE, so that when a new cross reference is added, the fields and options for the cross reference are consistent for all wells located in that STATE.

How can State Default Cross References can help?

Glad you asked.

One VERY IMPORTANT piece of oil and gas revenue distribution is your tax responsibility. A perfect example – are you responsible for calculating and remitting taxes (like gross production tax, etc.) for Oklahoma wells? It’s REAL IMPORTANT to get the tax flags set correctly if you’re responsible for calculating and remitting gross production tax to the GREAT STATE of OKLAHOMA. FYI - tax responsibility flags for well revenue are set where? Yep…in the Revenue Cross Reference!

You’ve probably already figured out that specific Default Cross References can be set up and attached with a state. In our example, an Oklahoma Default Cross Reference can be created, and each new well cross reference added for an Oklahoma well will have defaults already set for your tax responsibility as well as other applicable choices. Don’t want to mess up tax liabilities for those calculate and remit responsibilities.

When adding a new cross reference for a well, SSI checks the state in which the well is located (from WM02 – Well Maintenance) and, like MAGIC, uses that state’s Default Cross Reference for the flags and settings.

Here's how the State DEFAULT cross-references are set up.

WM04/RP01 – Cross Reference Maintenance (two different ways to access the same program).

• Well number. Use 999998 – Balancing/Correction well (everyone should have one) for ALL state DEFAULT cross references.
• Cross Reference number. Use DEFAULT:XX (XX represents the state code number from WM01 – Standards Maintenance - State/County Tax – State Codes/Tax Names). For Oklahoma…it’ll be DEFAULT:37
• Purchaser. Select a purchaser. Optionally, add a DEFAULT purchaser if multiple purchasers will use the same DEFAULT cross-references – but remember to select or enter the ACTUAL TRUE PURCHASER when keying in the revenue so that all purchaser payment history (the RP20P) isn’t showing up as DEFAULT purchaser. The true purchaser can be entered when initially going into RP03 on the front screen.

Set up the cross reference as you normally would. When the actual cross references for the wells are being added, if the well is in Oklahoma all the flags, etc. will be set according to the DEFAULT:37 cross reference pattern.

Go ahead! Try it once! It only takes a minute to set up the DEFAULT State Cross Reference. When adding a cross reference for a new well receiving production, all the flags will default appropriately from the DEFAULT:XX (XX = State).

When production is added in RP03 or in RP03I, just like you normally do, use the cross reference from the purchaser’s check. The cross reference you added with be used for all the applicable flags and responsibilities for the new well’s production because it was set up using the DEFAULT:XX cross reference pattern.

Using a State Default cross reference can be a big time-saver on multiple levels. Save time on the front end when you’re adding a new well cross reference. Save time on the back end because tax liabilities, etc. are set properly, which means less auditing, fixing and reconciling.

Just one more cool feature of your SSI Oil and Gas Accounting Software, working to make YOUR job EZier!

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