SSI Insights

Indirect Well Allocations

Indirect Well Allocations

April 21, 2021

Indirect Well Allocations

Computers are really good at math

Let SSI do the calculations when splitting costs to multiple wells. Indirect Well Allocation is especially useful for costs that cover numerous wells, as in a unit or field. Allocation percentages can be proportionate based on the number of wells in the field (each well in the field getting an equal share) or a specific percentage can be assigned to each well within the field - just as long as the total allocation for all wells in the in the field is 100%. 

How to build an Indirect Allocation

You will need:

  1. An Indirect Allocation well
  2. An allocation table to include each well in the split with the corresponding percentages. To make your job easier, we have an import for this part.  Import template located in Excel | Startup Import Templates | JB02I Template. This is a short-cut, for sure!
  3. A few mouse-clicks

Here’s the beauty – see total costs booked to Indirect wells and how those costs will distribute to each well in the allocation table. Review allocations and with a mouse click post allocations as a Journal Entry to the General Ledger.

Even more beauty – allocation tables can be added as/if needed by date the service was performed, AKA service date. The well count allocation table for one service month may be different than the well count allocation for a different service month. All indirect allocation wells will have a standard or “default” allocation table that can be used any time, or every time. But if the well count changes based on a specific date of service, a new allocation table can be built to accommodate that allocation change. Costs are allocated using the most appropriate allocation table based on the service date. If there is no need for a specific service date allocation table, the allocation will use the default allocation table. If the allocation changes for July services, any allocations with a service date prior to July service date will allocate on the prior allocation table.

SSI’s ON-LINE HELP for JB02 – Indirect Well Maintenance gives complete instructions and tips for implementation and utilization of Indirect Allocations. Another great time-saver in SSI’s toolbox to make YOUR job EZier!

Related Posts