Entering an oil and gas well asset

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  1. Open the desired client.

  2. Set up the association for oil and gas information if you haven't already done so, and create any custom wells and cost centers as needed.
  3. In the Asset List window, select the desired activity, if necessary, and click the Add button. The Asset Detail dialog opens for the new asset.
  4. Enter the appropriate information in the fields at the top of the Asset Detail dialog.
  5. Before entering any information for the well in the Depreciation tab, place your cursor in the Oil & Gas field. (This field may be at the top of the Asset Detail dialog or in the Association group box on the Other tab depending on the choices you made on the Setup > Associations dialog.)
  6. Choose the appropriate oil and gas well from the Oil and gas field.
  7. Click the Depreciation tab.
  8. In the Cost/Basis field of the Tax column, enter the cost/basis for the well.
  9. Select Units of production from the Methods field in the Tax column. Notice that the title of the Life field changed to Life/Cur Yr Units, and that the title of the ADS Life field changed to ADS Life / Tot Units.

    The application automatically enters the well's beginning reserves in the ADS Life / Tot Units field and the well's current-year production in the Life/Cur Yr Units field as entered in the Oil & Gas dialog.

  10. If the well is a prior-year asset, enter any prior depreciation taken on the well in the Prior Depreciation field of the Tax column.
  11. Click Done to return to the Asset List window.

Once an asset has been associated with a cost center, the current depreciation amount will transfer to the Overhead depreciation and Section 179 field in Screen OGCost. Any depreciation amounts associated with a cost center will be included in the amount of allocated overhead expenses that is found on Line 13 of the Oil and Gas Well Schedules.

When an asset has been associated with a particular well, the current depreciation amount will be included in the direct depreciation amount on Line 10 of the Oil and Gas Well Schedules.

Amortization assets for intangible drilling costs can also be linked with the Oil & Gas Module. The process is the same as above, but an Amortization section code must be entered on the Other tab for the asset.

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