TABLE OF CONTENTS


AFE Expense Reclassification 

The AFE Expense reclassification process was designed to allow the user the ability to reclassify AFE related charges from the WIP Account where the charges were originally booked to an expense account or another capital account.

 

Master File Setup

The following master files must be completed before you can run the AFE Expense Reclassification Process.

AFE Reclassification Type (Master Files/AFE/AFE Reclassification Type)

On the Reclassification Type tab of the AFE Reclassification form, the user must define one or more reclassification types and whether the AFE charges will be reclassified as an expense or as capital.

 

 

The Override Reclassification Accounts tab would be utilized in situations where the same set of billing categories is used on charges that need to be reclassified to different accounts. 

 


For example, you may have a set of IDC Billing Categories that are used for both exploratory and developmental well charges. You would want the exploratory well charges to be reclassified to an exploratory IDC additions account if the well is proven successful, but you want the developmental well charges to be reclassified to a developmental IDC additions account if proven successful. 


Billing Categories can only be set up with one Net Capital Acct and one Net Expense Acct (see Billing Categories section below), so the User would need to set up Override Reclassification Accounts for the charges that need to be reclassified to an account other than the Net Capital Acct or Net Expense Acct specified on the billing category.

 


 

AFE Type (Master Files/AFE/AFE Type)

The purpose of the AFE Type form is to define the type of AFEs that can be created and the appropriate budgets that will be available for these types. Each AFE Type Code can have up to three related Budget Types. AFE Types are used in combination with AFE Categories and Projects to define and create AFEs.

 

The WIP Status Required checkbox allows the User to flag an AFE Type to require a WIP status. When checked, the User must define the WIP status for all AFEs with the applicable AFE Type. The WIP Status is defined on the AFE Details tab of the AFE Attribute.

 

 

The purpose of the Applicable Reclassification Types tab is to allow the user the ability to re-classify AFE types as to whether the charges booked to that AFE need to be moved from the capital account to an expense account. Simply enter a reclassification code and description.

 

 

AFE Attribute (Enertia Lookup: AFE/AFE attribute/AFE Detail tab and WIP Reclass tab)

 

 

The AFE Detail tab of the AFE attribute contains an AFE WIP Status drop down list. If the AFE Type requires a reclassification type, this field will be required. If the AFE Type simply allows a reclassification type, then this field will be enabled, but not required. If the AFE Type does not allow reclassification types, then this field is disabled. The values in the drop down list of this field are user-defined and can be accessed by right-clicking on the AFE WIP Status drop down arrow while in Edit mode and selecting Maintenance Forms or by selecting the F6 function key. Examples of WIP Status: In Progress, In Service, Pending.

 

 

The AFE WIP Reclass tab on the AFE attribute is used to define the WIP Reclass Type for the specified AFE. The WIP Reclass Types available to choose from are determined by the types defined on the Applicable Reclassification Types Tab of the AFE Type form. The Reclass Effective Date field is used to define the date the WIP Reclass Type becomes effective. The AFE Reclassification Process will use the WIP Reclass Type that has an effective date that is less than or equal to the accounting date on the reclassification process.

 


Chart of Account Detail (Enertia Lookup: COA/COA attribute/COA Detail tab)

 

 

On the COA Detail tab of the COA attribute, the user must check the AFE Work in Progress checkbox on any account that the user intends to use as a WIP account. This account represents the initial net account where the Corp’s share of AFE charges are recorded prior to reclassification.

 

 

 

Billing Categories (Master Files/Joint Interest Billing/Billing Categories)

On the Category Detail tab of the Billing Categories form, the user must specify a Net/WIP Acct for each billing category. This account represents the initial net account where the Corp’s share of AFE charges are recorded prior to reclassification. As noted above, this account should be checked as an AFE Work in Progress account.

The user must also select a Net Capital Acct and/or a Net Expense Acct. These accounts represent where the AFE charges will be reclassed during the AFE Reclassification Process depending on the AFE Reclassification Type. The system will look at all of the AFE reclassification types that are set up to see if any are marked as a capital reclassification type. If so, the Net Capital Acct field will be enabled. If not, the field will be disabled. The same logic will be performed for the enabling and disabling of the Net Expense Acct field.

 

 

On the Billing Cat Corp Net Accts tab, the User can override the accounts specified on the Category Detail tab for any Corp that needs to use a different Net/WIP Acct, Net Capital Acct or Net Expense Acct.

 


AFE Expense Reclassification Process 

(Processing - AFE - AFE Expense Reclassification)

The User must select one or multiple Corps for the reclassification process by clicking on the right blue arrow along with the appropriate Accounting Date and Process Date. The user can also input any comments associated with the process. Click “OK”.

 

 

The selection grid will load with all AFEs that have been set up with a Reclassification Type and that have entries to Billing Categories where the net account has been flagged as an AFE Work In Progress account. The grid can be filtered to specific AFEs or Corps. The User must select one or more AFEs to reclass by pressing the right blue arrow and then the move next button.

 


The Preliminary Recap step will produce the AFE Expense Reclassification report that displays the AFE, Corp and transactions that will be reclassified. It shows the original account(s) the transactions were booked to and the account(s) that will be used during the reclassification journalization.

 

 

 

The AFE Reclassification Recap step will generate the G/L Journalization report showing the complete details of what will be posted upon finalizing the process.

 

 

 

AFE Default Expense Deck

AFE Expense Default Deck can be linked to an AFE via the Expense Deck Attribute.  The Expense Deck Attribute is added to the AFE via the FBS Designer.  If an AFE has a Default Expense Deck attribute, when txn’s are coded to a property with that AFE, Enertia will use that Default Expense Deck.  This is for cases where the expense property default deck is not the deck that you want to use when coding to that property and AFE combination.

 

Master File Setup

Enertia Menu/FBS Designer/FBS Type Attributes Tab/Select FBS Type = AFE

Add the ExpDeck Attribute Code to the AFE.


 

AFE Default Expense Attribute Security

Enertia Menu/System Menu/System Security/Security Setup – Role Based

Since a new attribute was added to the AFE, you will need to generate and apply security so it can be accesses.

In the Apply/Generate Security tab press the Generate Security button.  If you do not see the button, make sure the panel has been selected in the upper left of the form.

 

 

Go to the Generic Security Wizard tab and verify the Authority for Expenditure Authority has the Expense Property Tasks.



When a txn is coded to an AFE, if the service date on the txn detail is greater than the AFE Default Expense begin date the AFE Default Expense Deck will auto-populate.  And If the service date on the txn is before the AFE Default Expense Deck begin date, the coded properties Default Expense Deck will populate.

 

 

AFE Balloting Process

The AFE Balloting allows for full tracking of ownership participation offers, acceptances and non-consents with the benefits of integration to and from the Deck Maintenance Form and the option to Generate AFE Prepayment Invoices. The AFE Balloting Form can be reached from Processes/AFE/AFE Balloting Process or from the AFE attribute Details tab “Balloting” button.

 

Master File Setup

Master Files - AFE Ballot Type

Master Files/AFE/AFE Ballot Type

The purpose of the AFE Ballot Type form is to allow the User the ability to create up to three user-defined ballot types. These ballot types are used in the balloting process to track the interests that are offered and the acceptance or non-consent of those interests.

 


AFE Ballot Type Code - This is a user-defined 5 character field that will define the code for each ballot type.

AFE Ballot Type Description - This is a user-defined 35 character field for the description of the AFE ballot type code.

Ballot Sequence - This user-defined field should be used to number the AFE ballot types in order from 1 to 3. A sequence of 1 will be the first ballot type used in the balloting process.

Invoice upon 100% interest accepted only - This radio button option prevents a user from invoicing an owner through the Prepayment Invoicing process until 100% of the interest offered in the balloting process has been accepted.

Allow Invoice on Interest Offered - This radio button option allows a user to invoice owners through the Prepayment Invoicing process on the original interest offered. If an owner subsequently goes non consent, a second invoicing process can be run to reverse the invoices for the non-consent owners and create additional invoices for the incremental amount for the owners picking up the non-consent interests.

 

Determining Ownership

The first step in the balloting process is to determine ownership for the area or project the User is working with. If this is an ongoing project and ownership already exists in a current JIB deck, Land deck or Revenue deck, the User could use that deck as a source for the balloting ownership. If it is a new area, and the ownership is not yet in the system, it is best to first set up the Title Ownership Deck. From the Deck Maintenance Form (Master Files/Ownership/Deck Maintenance), create a new deck like below.

 

 

AFE Balloting Process

Once an AFE Project has been defined and related to the appropriate property, the user can start tracking participation. 

 

 

The User can start balloting the entitled owners to see if they will participate in this project or not. The AFE Balloting Form will help with tracking this information. 

From the AFE Attribute, the user can open the AFE Balloting Form using the Balloting button to begin this process for the specific AFE. Or the following menu path can be used to see all AFE’s available for the Balloting process:  Enertia Menu/Processing/AFE/AFE Balloting. 

 

First the AFE Ownership

The first step in the balloting process is to determine ownership for the AFE. Because we have already started by setting up our Title Deck, we can now use that deck to populate our beginning point in the Balloting Process. If no ownership exists in the system, the user can manually enter the ownership into the balloting process. Ownership detailed here must be no more and no less than 100% in order for the Balloting process to proceed.

By selecting the From Deck button on the form, we can copy in our Title Deck to start. Once the deck is selected, and OK is clicked, the ownership will copy in as it is in the current effective date from the deck. Notice that the Ownership from the deck is populated in the Initial WI column. Recall, this is our beginning point, but not all owners may decide to participate. The Accepted WI column will be the interest each owner does participate with. 


                                  

AFE Balloting Headers

There are up to 3 ballots available for use in tracking the ownership and any non-consent interest that may become available. The next step would be to create the First Ballot Header to offer out interests. The Ballot Header just holds the basic information as to when it was effective, mailed and expired as well as who was responsible for it. The completion date is added after the balloting that round is recorded.

 


The Creation of the ballot header creates a copy of the ownership from the AFE Owners Tab and copies it to the AFE Balloting Details Tab.

 

 

On the AFE Balloting Details Tab the details of the ownership participation are recorded. When in Edit mode, there are 3 options to record the owner’s participation. 

  1. An owner can fully participate with the interest offered. If so, the user can double-click on the row of the owner, and the interest offered will be populated in the Interest Accepted column.
  2. An owner can partially participate with the interest offered. If so, the user can enter the participation percent in the interest accepted. When this happens, the difference between the offered and accepted interest will be calculated and shown in the Non-consent column. This interest will be then offered to other owners in the remaining ballots.
  3. The owner can decide to not participate at all. Enter a zero in the Interest Accepted column, and the full interest will then show in the Non-Consent column. This interest will be then offered to the other owners in the remaining ballots.

AFE Balloting Details Tab - Detail Button

The Selection of the Detail Button changes the layout of the Balloting details tab to include the ability to add dated detail records for each owner. A record can be added to describe the response for the ballot offer for each particular owner. 


 

The Response Date, Type and Remarks can later be viewed in the AFE Balloting Response tab. 

The option to use the Ballot Response Import allows the user to import AFE balloting data by completing an Excel spreadsheet and importing the data in to Enertia.

 

AFE Ballot Response Import   

This form will let Users create a blank spreadsheet or it will allow Users to select an existing workbook that has previously been saved by the user. The same form will allow the user to import the spreadsheet data back into the existing tab on the AFE Balloting Header Tab. To open the import use the Ballot Response Import button.

 


 

To create a new workbook select the Create Blank Template button. After the workbook has been filled in and is ready to import. When uploading Load the template and Validate. The workbook contents will load into the grid. If there are any errors they will be listed with each row with an explanation and the Import button will not be available. If there are no errors, the import button will be available.    

   

Workbook Columns

 

 

Column A - AFE Code - This field requires a valid AFE. 

Column B - Ballot Type - This field requires a valid Ballot Type. 

Column C - Owner Type - This field requires a valid Owner Type. 

Column D - Owner Code - This field requires a valid Owner on the AFE. 

Column E - Owner Interest Type - This field requires a valid Interest Type. 

Column F - Accepted Interest - This is an optional field. Value must be 0, 1, Y or N. 

Column G - Rejected Interest - This is an optional field. Value must be 0, 1, Y or N. 

Column H - Specific Interest Accepted - This is an optional field. Value must be between 0 and 1. 

Column I - Response Type - This requires a valid response type. 

Column J - Response Date - This requires a valid date. 

Column K - Remarks - This is an optional field. Limited to 255 characters. 

Columns L - N - Images - These are optional fields. 

 

The AFE Balloting Resp Tab allows the user to view all responses entered to date for the AFE currently being viewed. 


 

Closing a Ballot

 

 

Each Ballot is required to have all owners marked in one of the above ways. Once they are updated, the ballot header will need to have the Completion Date entered in the AFE Balloting Header tab in order for the system to recognize the Ballot as complete. If there is any non consent interest when the ballot is closed, a second ballot should be added. The non-consent interest will distribute as 2nd ballot interest offered to the remaining partners based on the percentage already accepted. 

 

When the non-consent interest is zero the ballot can be closed. At this point, the user can review both the initial interest information and the final interest information from the AFE Owners Tab.

 

 

The opportunity to create a deck from this ballot is now available. From the AFE Owners Tab, there is a To Deck button on the lower right part of the form. Once this button is selected, the User has a couple of options. A new deck may be created with the final ownership information, or the existing deck can be overwritten so long as it has not been through the JIB Billing Process.

 


Notice that the deck created from the Ballot process, now becomes our Before Payout Deck. This interest excludes owners who decided not to participate in this project. In most cases, they have the right to come back in to the project after such time as penalties according to the JOA have been met. Therefore, our original title deck becomes our After Payout Deck

 

 

It’s a good idea to modify the original deck with this information so that it is easily distinguished between each deck.

 


AFE Prepayment Invoicing

 

Setup for AFE Prepayment Process

The AFE Prepayment Invoice Process has a few setup requirements in order for the process to run correctly. Since two different batches are generated during the process, multiple transaction types will be required as well as a CIB category and COA defaults. The batches generated during the process are a Prepayment Invoice Batch and an A/R Batch. The following setup will be necessary for the AFE Invoice Process. 

 

Generated Invoice Batch

The Prepayment Invoice Batch is generated for the purpose of booking the invoice transactions. The creation of this batch provides the ability to apply cash receipts of the prepayments as they are received. It also provides the ability to easily track those prepayments that haven’t been received and a method of reconciliation in the event they are never received. 

  1. Pre-Payment Invoices batch created from the Ballot form will use the PPINV txn type. The PPINV txn type can be defined with an offset account of something like A/R Prepayment Invoices. The primary account is not used for this transaction type. The offset account will override the CIB A/R Account setup in the corporation profile. This account will be offset with the Cash Payment application to the Invoice. 
  2. Payment Invoices batch created will use the CIB Category defined in the System Menu/System Defaults form. The CIB Category will have an Income/Offset account defined which will be used for the other side of the journalization. This account should be an A/R clearing account something like Pre-Payment Clearing. This account will be balanced (cleared) with the AR Batch created later. 

The resulting entry for the batch is as follows:

             Dr. A/R Prepayment Invoices                 

             Cr. Pre-Payment Clearing   

 

Generated AR Batch       

The A/R Batch creates the prepayment balance on the A/R for each owner billed in the AFE Prepayment Invoice Process. 

  1. The system will use the defined offset account from the CIB category setup above. 
  2. The A/R account is defined on the Corporation profile Pre-payment payable account. This account will be the offset when the costs are occurred and applied against the pre-payment in the AR Invoice process. 

The resulting entry for the batch is as follows:

Dr. Prepayment Clearing             

Cr. Pre-payment Payable 

 

A summarized listing of Transaction types needed and the related COAs are listed below. 

 

Transaction Setup

Transaction Type 1

Transaction Type 2

Type Code

PPINV  

PPSET

Source Code

A/P

A/J

Primary Account

No Primary Defined

No Primary Defined

Offset Account (COA) 

A/R Prepayment Invoice

No Offset Defined

Offset Type Code

AJE

AJE

Master Files/Common Files/Txn Types

 

PPINV

 

PPSET

 

COA

The following COA’s will be needed:

  • A/R Prepayment Invoices
  • Prepayment Clearing
  • Prepayment Payable

CIB Category

Master Files/Joint Interest Billing/CIB

 

 


The Prepayment CIB Code will be added to the System Defaults form as the Prepay Invoice Category.

 

AR Batch for Cash Application of Invoice

For the Cash application of the cash receipt of the prepayment when it is deposited, there will need to be another transaction type set up. The setup details for this transaction type are shown below. 

 

Transaction Setup

Transaction Type 3

Type Code

CRJIB

Source Code

CR

Primary Account

Cash Account for Deposit

Offset Account (COA) 

A/R Prepayment Invoices

Offset Type Code

AJE

 

System Defaults Setup

Prepay Invoice Category code is the CIB Code with the Prepayment Clearing account.

Create Pre-Payments on Receipt of A/R - When this flag is set to True (Checked), the AFE Prepayment Process will NOT create the A/R Prepayment Transaction, only the CIB Prepayment Invoice. When an A/R Cash receipt is received and applied to the CIB invoice thru an A/R batch, the Batch edit of that A/R batch will require the user to enter a new Batch ID. The system will at that time create the Prepayment Transaction for the related AFE during the Editing and Posting of the Cash Receipts batch.

 When this flag is set to False (Unchecked), the AFE Prepayment Process will create both the A/R Prepayment transaction as well as the CIB prepayment Invoice. This allows the Prepayment to be available immediately for application to invoices during the A/R Invoice Process. 

 

 


AFE Prepayment Invoice Process 

Once all the ballots are in and finalized, Users can then create a Prepayment Invoice using the wizard in the Balloting Form.

 

 

Start the wizard by clicking the Invoice button which will open a new window. 

The AFE Prepayment Invoice Generate Process can also be started from the Enertia Menu/Processing/AFE/ AFE Prepayment Invoice Generate Process.  

The AFE Prepayment Invoice Selection form requires the user to define preliminary information related to the AFE Prepayment Invoice process. The following must be specified: the Corporation for the Invoices, the Production Month that will be performing the invoicing, the Process Date that is applicable for the prepayment invoicing and the accounting date that will be carried on the records when posting to the general ledger. Users can also select if they want to invoice for a portion of the AFE budget or for all of it by checking the boxes next to the amounts listed. 

When all of this data has been defined an AFE Prepayment Invoice Process can be started. Once Users click OK, the Prepayment Invoice Process will begin.



AFE Prepayment Invoice Processing Steps


Confirm Selection


 

When this button is selected the system will check to ensure that at least one record for the current process has been selected. If no records have been selected, then the system will not allow the user to continue until one or more records are selected.

The system will also execute any reports that have been associated to this step via the Report Group form. Any applicable reporting is based on the user-defined setup of the Report Group. The reports can print directly to the printer, display on the screen for print preview or be delivered to the print queue. The destination is based on the Report Method defined for the current process.

 

Selection Recap



After the Confirm Selection step in the invoice process has been successfully completed, the AFE Prepayment Invoice Selection Recap button will be enabled allowing the user to continue with the next processing step. This step will evaluate all of the selected items for the invoice process and determine if there are any errors or problems that will prevent the process from continuing. If errors exist the Errors button will be displayed in bold text allowing the user to review the errors which prevent the process from continuing. If errors exist, then the problem must be either corrected or the user must backup in the process to the Select Eligible Items step and de-select the problem item(s). This step is designed to identify errors at the earliest point in the credit invoice process in order that they can be addressed and the process can be continued in a timely fashion.

When this step is executed the system locks the location records that are selected for processing. These records remain locked until the process is complete ensuring that the location records maintain their integrity.

 The system will also provide the reports that have been defined for the Report Group that is associated to this step in the accounts receivable invoice process. The reporting is based on the user-defined setup of the Report Group. The reports will either be printed directly to the printer, previewed to the screen or delivered to the print queue based on the Report Method defined for the current process.

 

Select Batch Numbers

After the Selection Recap step has been successfully completed this button will be enabled allowing the user to continue with the prepayment invoice process. This step opens a Select Batches Form  where you must select the button and assign a unique batch ID number and batch description for the Prepayment Invoice Transaction batch and possibly the A/R transaction batch that will be created later in the process. It is now possible to only create the Prepayment Invoice batch during this process. By setting the Flag in the System Defaults form of Create Prepay on Receipt of A/R to True, the Prepayment will not be created during the AFE prepayment Process. It will be generated when the Prepayment Invoice is paid. If this flag is not set to True, the Prepayment Batch will be created during this AFE Prepayment Invoice Process.

If the Create Prepay on Receipt of A/R is selected you will have only an Invoice Batch:

 


If the Create Prepay on Receipt of AR is NOT selected, you will have an AR and Invoice Batches.

 

 

Create Invoice Txns

This step will create prepayment invoice transactions for the WI owners identified on the selection form. The system will also provide the reports that have been defined for the Report Group that is associated to this step in the AFE Prepayment invoice process. The reporting is based on the user defined setup of the Report Group. The reports will either be printed directly to the printer, previewed to your screen or delivered to the print queue based on the Report Method defined for the current process. 

 

 

Review Inv Txns

This step will allow the user to review the A/R Prepayment invoice header and the detail transaction forms that were created in the previous step. The transaction amounts cannot be changed, however, the Service Category, Service Date and descriptions on the transaction detail form can be edited in this step.

 

 

Recap

This button will perform a batch edit process on the invoice transaction batch created in previous steps, journalize the batch and will print General Ledger Journalization and transaction batch edit reports for verification. This step allows the user to define the reporting that will take place via the Report Group. All of the reports that are included in the Report Group for this processing step will either be printed directly to the printer, previewed to the screen for review/printing, or delivered to the print queue based on the Report Method defined for the current process.

 

Finalize Processing

This step will post the general ledger with journalization records created by the Recap step. When the process has been finalized the AFE Prepayment credit invoice is complete.