MetroSoft SOGAS

Oil and Gas Accounting Software

Time Saving Allocations: What, When and Where

Businesses improve operations—and results—by cutting processing time and reducing mistakes. Combining several tasks into one step is one way to achieve those benefits. The same idea is true in SOGAS.Net. Time savings and reduced data entry are achieved by using allocation functions—expense or revenue.

Here are two ways you can use SOGAS.Net to save time:

Expense Allocation Example

Five wells are serviced by one electric meter. Each month an electric bill shows up from that single meter which now must be split to each well location. This can be based on a percentage, individual meter readings at the well or production numbers. Instead of using a monthly spreadsheet or calculator / scratch paper to figure the five individual expense entries, simply set up an expense allocation that includes each of the wells and assigns factors for each. When the electric bill is set up as an invoice in the accounts payable, the name of the allocation is added to the record which will then trigger the system to automatically split the expense, as specified, either through Joint Interest Billing or direct expense allocation processing. This allocation can be transferred month to month with modifications to the factors based on changing monthly conditions.

Revenue Allocation Example

A revenue check arrives that is representative of production from 10 different wells (and perhaps completely different owners). Instead of adding this information 10 times, create a revenue allocation that will split the revenue based on actual monthly production factors from the wells. Set up an allocation called The 10 Well Allocation, for example, that contains each of those wells and their monthly production factor. When posting the revenue, select the name of this allocation in the specified field and then process the allocation; this will produce a nice report of the activity. Now, whether you are using Revenue Distribution or the General Ledger for the remaining revenue posting, your data entry load has been reduced. This allocation can be transferred month to month with modifications to the factors based on changing monthly conditions.

These allocation functions are found in the General Maintenance module. Sogas gives you the tools to create an unlimited number of expense or revenue allocations.

If you would like any additional help or ideas, please contact us.