Screen OGCost - Oil and Gas Cost Center Information (1065)

Alerts and notices

Video overview

The following video outlines the information described below.

Overview

Use this screen to enter oil and gas cost center information for a particular activity.

This screen is visible only if you have purchased the add-on UltraTax/Oil & Gas module.

Enter oil and gas data on two levels: cost centers and wells. "Cost centers" represent an aggregation of individual oil and gas wells. Use Screen OGCost, Oil and Gas Cost Center Information, to enter the overhead amounts associated with the cost centers and to designate the method used to allocate that overhead. Use Screen OGWell, Oil and Gas Well Information, to enter information related to each individual well.

You can enter oil and gas information for Form 1065, Page 1; Schedule K, Royalty income; or Schedule K-1, Passthrough. On each unit of Screen OGCost, enter information for up to 12 different cost centers. An activity can have cost centers with different amounts of overhead and different methods of overhead allocation.

Notes:

  • When you use the UltraTax/Oil & Gas module with a K-1 activity, the UltraTax/Oil & Gas module does not transfer the net income to Form 1065, because this income is already included in Screen K1 or Screen K1-2.
  • Electronic Filing Note: See General and input screen-specific topics for electronic returns for data-entry guidelines to prevent electronic filing rejections.

General Information

Use this section to indicate if expenses are to be reported on Form 1125-A.

Enter X if all expenses entered for Page 1 oil and gas wells and their associated costs should be reported on Form 1125-A, Other costs. If you do not enter X, the expenses you enter transfer to Page 1. This field is applicable only for Page 1 oil and gas wells that are not specially allocated.

Oil and Gas Cost Centers

Enter a description of the cost center. The application uses this description in a drop-down list in each unit in Screen OGWell for the cost center to which the well applies. This field is mandatory.

Use the statement to enter overhead expenses associated with the cost center unit. The descriptions and amounts you enter in the statement transfer to the statement on Page 1, Other deductions; Form 1125-A, Other costs; or Schedule K, Other deductions.

Overhead depreciation and section 179 expense automatically transfer from the asset module to this statement if you selected the cost center in the Oil & Gas association field for the applicable asset. If you did not enter assets in the asset module, use the statement to enter these amounts.

You must associate each oil and gas asset with a cost center or well number. Without this association, the depreciation information cannot transfer to Screen OGCost or Screen OGWell. To enter the cost center number and well number for each asset in the asset module, choose Setup > Associations, mark the Oil and Gas checkbox, and then click the Properties button. Enter the unique cost center and well combinations in the Cost center field and the Well number field, and then assign the asset to either a cost center or a specific well in the Oil & Gas association field in the asset detail dialog.

 

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