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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.
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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:
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.
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