Tired of hearing: "the system can't do that!"
If our system doesn't already do it, we will change it!
ISI Software
has over 30 years experience of programming Oil and Gas accounting systems for
exploration and operating companies. Our expertise focuses on providing
customization for individual companies at a low cost and incorporating the
changes into the total system. Also, we specialize in converting data from IBM
system 3x mini-computers to the PC environment. Training, support and program
updates are accomplished via modem allowing us to service a client anywhere
very effectively.
E-mail us with a question or request a free consultation.
or contact: Cliff Buchanan, ISI Software, 1404 Castle Road, Odessa TX 79762-7740,
phone 432-550-3302
ISI is now a distributor for Business Works accounting software. I recommend it for
non-oil & gas companies. It is very flexible and in addition to normal
bookkeeping applications, it features Inventory Control and Purchasing, Order
Entry and Job Cost. Click here to download a free demo.
ISI is now designing and
building web pages. Call or e-mail for references and a
free quotation.
Link to affilate: Intelligent Systems Integration
The Integrated Oil and Gas Accounting System
is made up of several application modules:
The following is a brief summary of each
application in the Integrated Oil and Gas System
The Integrated Oil and Gas System uses a data
base concept that allows most information to be entered once and to be used by
multiple applications. The Master File Application contains programs and
reporting procedures to create and maintain master file records that are common
to more than one other application in the system. The programs to maintain
files that are not common to multiple applications are included in the
applications that use the files.
The following common records are maintained
by the Master File Application:
All of the above records are maintained in a
single physical file referred to as the Master File; however, each record type
is processed separately.
Control records are used to customize the
system to the individual users requirements. These records contain information
such as valid source codes and printer and date options. The records also
identify general ledger accounts that have unique specifications such as
requiring a valid lease number with input transactions in order to maintain
subsidiary ledgers.
Master File reports may be printed for each
record type and lease and name and address labels may also be printed.
The Accounts Payable Application provides for
entry and processing of items to be paid along with the associated distribution
in a multi-company environment. Manual and void check information may also be
entered. Accounts Payable is fully integrated with the other applications in
the System.
Payable input are normally vouchers and batch
totals are recorded before the data is entered. All input is entered and edited
online. Selected General Ledger Accounts require entry of lease, property,
drilling contract number and/or a name and address number along with the
distribution amount. For example, accounts specific as billable in the Billable
Accounts Control Record require lease numbers which are verified against the
Lease Master and Joint Interest Billing Files.
The edited input transactions are printed on
an edit listing prior to posting. Any corrections for items, such as amounts
coded to the wrong accounts, may be made before the transactions are posted to
various system files.
The payable input automatically flows to the
following applications:
In addition to providing primary input data
for other applications, the entry program causes future payment transactions to
be retained. Items may be selected from these transactions for payments by
Company and:
Items selected for payment are listed on a
pre-register for review before checks are written. When the payments are
approved, checks and remittance advises are printed. Only one check is prepared
for a vendor regardless of the number of invoices. The invoices being paid are
listed on the remittance advice.
The major reports produced by the application
are:
A Check Register may be printed each time
Checks are prepared, and a Monthly Check Register is normally printed. Any
Manual or Void Checks are included on the Registers. For Cash requirements, the
user specifies the number of Days that are to be included when the report is
requested.
The Accounts Receivable Application processes
Cash Receipts and produces Statements. Receivables are automatically created
from the Joint Interest Billing and Lease Records Applications. On-line Journal
Entries from the General Ledger Application may also create Receivables for
special items. Multiple Companies are supported, and automatic Journal Entries
are generated for the General Ledger Application. Investor Accounts may be
maintained on either a Balance Forward or an Open Item basis.
Cash Receipts are entered and edited on-line,
and an Edit Listing is printed for review before the transactions are posted to
the individual Accounts. Detail Open Items or Balance Forward Statements are
produced by Investor.
The major Reports produced are:
The General Ledger Application is fully
interfaced with the other applications in the ISI Integrated Oil and Gas
System. The chart of accounts is user-defined, and multiple companies with
different fiscal years are supported. Financial statements are customized by
control records to meet the individual user requirements. Consolidated trial
balances, profit and loss statements and balance sheets may be prepared.
Journal entries are entered or displayed and
edited on line, and an edit listing is printed for review before the
transactions are posted to the system files. On-line inquiries may be made to
display individual general ledger account balances, and detail Account Analysis
Reports may be printed.
Multiple accounting periods may be open at
one time. Adjustments may be made to closed periods, and the system will
automatically update subsequent period balances to reflect the changes.
Trial balances may be prepared by company,
division, or branch or on a consolidated basis. A detailed general ledger is
printed that provides a complete audit trail of all transactions processed
during the month or year.
The major reports produced are:
The oil and gas industry is a composite of
many functions, ranging from the exploration, leasing and drilling to the
producing and other related activities, which are entered into under the terms
of Joint Interest Operating agreements. These agreements become the basis for
multiple participation in the selected ventures. The form and substance of the
Joint Interest Operating Agreements cause unusual and complex accounting
requirements. Accordingly, the Joint Interest Billing Application has been
designed to handle the accounting complexities of joint interest operations as
follows:
1.
Specific identification
of billable General Ledger accounts.
2.
Lease and well number is
required when billable costs are entered in the system.
1.
Gross lease costs are
entered for both operated and outside operated leases. This ensures that each
investor's actual working interest appears on their Joint Interest invoices.
1.
Maintained by lease or
well by investor in the Joint Interest Master File.
2.
The system will bill different
interests on the same lease such as before and after casing point and before
and after payout.
3.
A non-accountable
working interest is used for outside operated leases in order to record the
actual gross charges for management reporting purposes.
1.
Automatic generation of
producing well overhead and contract pumping charges.
1.
Detailed invoices are
produced at the user's discretion. A special accounts payable source code
allows specific items to be immediately billed.
2.
A billing recap by lease
or vendor may be produced for review prior to producing Joint Interest
invoices.
1.
Ability to process
multiple companies on the same system, and through the concept of an operating
company (source documents are only entered once) to automatically create
complete accounting entries for all related entities.
1.
Total integration with
the General Accounting Application (Master Files, Accounts Payable, Accounts
Receivable and the General Ledger).
2.
Ability to net Joint
Interest invoices against oil and gas revenue.
1.
Ability to produce
invoices from a lease, to a lease. This is to allow for example, a salt-water
disposal well to bill all leases that use the facility.
2.
Owners receive a copy of
any lease allocation invoice in which they are responsible for some payment.
The major reports, which are produced by the
Joint Interest Application, are as follows:
1.
Joint Interest Billing
master by owner name and address number.
2.
Joint Interest Billing
master by lease number.
3.
Billing Recap by:
Lease
Vendor name and address number
General Ledger account number
1.
Expenditure Summary by
Lease or Well.
2.
Year-to-date Lease
Detail Report.
3.
Invoices by well within
lease.
4.
Investor statements.
The Oil and Gas Revenue Application, a very
comprehensive application of the Integrated Oil and Gas Accounting System, has
been designed to utilize the full capabilities of the integrated system to
provide the user with the following oil and gas revenue information.
1. Accounting for all components of oil and
gas revenue, whether as an operator with the responsibilities of a first
purchaser for Windfall Profit Tax purposes, or strictly to record a company's
net revenue interest. Specifically, the components accounted for on both a
gross and net basis are as follows:
2. Recording the liabilities and
disbursements of net oil and gas revenues to the following type of interests:
3. Management Reporting
4. Automatic Preparation of IRS Form 1099
5. Ability to net joint interests billings
against oil and gas revenues
6. Sub-ledgers of minimum pay and suspense
are automatically maintained for distributed revenue. Appropriate journal
entries are generated during distributed revenue to record changes in these
accounts.
7. Revenue transactions can be received via
modem through the GE VAP and processed directly.
In addition to the previous types of
information generated by the Oil and Gas Revenue Application, the system offers
numerous advantages with respect to the detail entry of oil and gas revenue
data. The user has the option of entering the data directly from the
purchasers' remittance advises (26 different purchaser format codes are
available), or summarizing the data on preprinted input forms to be used for
data entry. All input is edited directly on-line and the system also provides
warning messages with respect to unreasonable relationships such as the
correlation between volumes and values. An important feature of the system is
the automatic posting of an affiliated entity's (corporation, partnership or
individual) share of oil and gas revenue and related expenses. When revenue is
distributed to an affiliated entity, the system generates appropriate
accounting entries that are automatically posted to the affiliated company's
files or books.
This Application verifies oil volumes
reported to the operator on crude oil statements received from the purchasers
or transporter and collects data from gas statements for preparation of the Gas
Producers Monthly Report for the Texas State Comptroller's office. Tank table
information is maintained for calculation of measured volumes from a copy of
the run ticket. By calculating the necessary corrections for specific gravity
and temperature using American Petroleum Institute specifications, the
corrected volume is used to verify the monthly crude oil run statement.
Run tickets are summarized at month's end,
and any run tickets that appear to be incorrect are identified. This monthly
summary report provides information used to prepare the Producer's Monthly
Report of Taxable Crude Oil.
Windfall Profits Tax may be calculated and
listed by entering the necessary data (gross volume and gross value or lease
net and gross production tax) and by using information stored in the Revenue
Application for each lease (tier, inflation adjustment factor, and independent
and non-independent tax rates).
Gas statement detail is entered and stored in
the system to provide data for preparation of the Gas Producers Monthly Report.
The information is retained for future statistical reporting.
NGPA pricing and contractual information is
stored by meter number and state. Information may be stored for any state. The
system automatically generates lease use volumes, averages monthly values and
calculates the appropriate Lease Use Tax for subsequent billing through the
Joint Interest Billing Application.
Major reports produced are as follows:
The Lease Records Application maintains an
inventory of legal titles and descriptions, delay rental and obligation
information, shut-in royalty, and other associated information to support the
Land Management responsibilities.
The following information is provided:
Lease acquisition costs are automatically
accumulated by Prospect in the General Accounting Application.
Delay rental and shut-in royalty checks are
produced, and the correct entries are automatically made to the General Ledger
System.
The Payroll Application calculates gross
earnings and taxes, process deductions and prints checks and other payroll
reports. Multiple companies are supported and the system is fully integrated
with the General Ledger Application.
Salaried and hourly employee earnings may be
calculated weekly, biweekly, semi-monthly or monthly. Time record information,
employee name and address number, hours and any special earnings, is entered
and edited online. Gross earnings including overtime and shift differential are
computed along with the associated federal, state, city and FICA taxes.
Separate tax rates for special earnings such as bonuses may be used. Payroll deductions
that are set up for such items as insurance or savings bonds are automatically
processed to obtain net earnings. Current, month-to-date, quarter-to-date and
year-to-date totals are maintained for each type of hours, gross earnings,
taxes and deductions. The system allows up to fifteen different deductions for
an employee in a single pay period. There are three types of deductions,
standard amount, percentage and payout. A standard amount deduction is always
for the same dollar amount. A percentage deduction is calculated by multiplying
the deduction percent times gross earnings. (Special earnings may be excluded
from the calculation). A payout deduction is a standard dollar amount that
automatically stops when a specified amount is reached. Each deduction type
contains a frequency code that determines which pay periods to take the
deduction. An employee may have five of each type of deduction for fifteen
total deductions in a pay period.
Journal entries are produced to record the
payroll in the General Ledger Application. The employer's FICA tax contribution
is included in the journal entries. The journal entries created by the payroll
programs record the expenses at the company level.
Major Reports:
The system also contains a number of on-line inquires that display employee data. Sign-on menu security is provided to prevent unauthorized access to sensitive data.
Webpage created by Cliff
Buchanan |