JIB PREPAYMENTS

Enter prepayments for JIB owners with staggered effective datesJIB-prepayment

Receive prepayments and specify what well(s) and effective dates the payment should be applied towards. Any expenses processed on a JIB run closed with an invoice date on or after the date specified here will apply the expense towards the prepayment.

 


HOW IT WORKS:

(feature included AFE Module)

Receive the prepayment

The fields within the yellow section are data entry fields that allow you to enter the detail of what wells are affected by this prepayment. If the prepayment should be applied towards multiple wells or the same well with multiple effective dates then you enter the information in these fields separately for each situation. 

 

The effective date is the earliest date that will allow expenses from this well to be applied towards the prepayment. JIB runs processed with an invoice date prior to the effective date will not have the prepayment applied towards their balances.

JIB Closing Reports

On the JIB Closing Summary, the total prepayment amounts applied on that run will display -- showing the total amount for all owners with a prepayment.

JIB Statement

See the detail of what took place on this run on the JIB Statement. It will show the prepayments applied for each well, how much the prepayment was and what balance remains.

 

It will also show on the statement when the prepayment balance has been used in full.


Frequently Asked Questions

 

What about Net Owners?

You can receive the prepayment for a net owner with the “Receive Owner Net Payments” window.  After the payment is entered you will need to go to the Division of Interest window and place the interest on hold.  You will have to watch the balance until it is fully used up.  Once the prepayment is used up you can take the interest off of hold.  The next run closing will then reimburse the owner for an overpayment of bill them for any additional costs.

 

Can you apply the prepayment to select expenses?

The prepayment is applied on the well level.  Any JIB expenses processed on or after the effective date will be applied towards the prepayment.  We do not have a way to further distinguish between expense codes.

 

Can you have multiple effective dates for a well with the same payment?

Yes.  Create a separate detail line for each effective date.  The well will be the same for both detail lines.

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