JIB Title Issue - Do Not Send JIB

Don’t be confused.

What this is.

It’s a handy little EZ way to save processing time, printing and postage for JIBs that are just going to get thrown away anyhow. Rather than sorting through or printing/stuffing/mailing, or emailing a JIB to unknown or “can’t find” investors, this suppresses the JIB from being printed or processed for a specific owner.

What it isn’t.

It isn’t JIB suspense. An invoice from a vendor that hits a well/category has to be billed out in its entirety. You can’t just bill out part of the cost – you’ve got to bill out 100% of the charge and base it on the DOI. That’s from Oil and Gas Accounting 101. The vendor is going to want payment for the entire invoice. He doesn’t care if there are title issues on the well. Not to mention what it would do to the 8/8ths well history reporting for total well costs.

Bill out to an unknown owner? That’s a problem too. That unknown owner would get billed for all kinds of JIB charges for all kinds of wells, getting all jumbled up together. Could be a real mess when you find out who the real owner is and try to do a rebill. Not to mention that “unknown owner” would have to be included in the DOI for the well. Yucky.

What we did.

Your SSI Oil and Gas Accounting Software has given you the perfect answer. Suppress the printing/mailing/emailing processing time for investors with title issues. Wells with cloudy titles, investors with title disputes, investors who have passed away and heirs are unknown, bad addresses, or a whole host of other reasons can be flagged as an investor JIB Title Issue – Do Not Send JIB and guess what? A JIB will not be printed and/or emailed. It’s just a waste of paper and labor anyway to print, fold, stuff and put postage on something that’s most likely coming back as (in the Elvis song) Return to Sender!

WM01 – Standards Maintenance

See the Well tab at the top of the screen and JIB Title Issues Codes from the drop-down? Start by creating your own personalized and unique codes to cover all the reasons why and investor can have title issues. Set up 1 or 100 codes. We don’t care. It’s a 6-digit alpha/numeric code with a description.

WM03 – DOI Maintenance

Pull up the well and investor with title issues. There’s a box to click just about right in the middle of the screen – Title Issue (Do Not Send JIB). Right next to it is the box to select the description code (from above) of why the investor is set to Title Issue. Save record and COPY TO TITLE (that’s important!).

What it does.

It will continue to charge the investor, and can be reviewed in Accounts Receivables. You gotta know who owes you that money, even if they never pay it. In AR05 it will flag the investor transactions with title issues as such. There’s an option on the AR05 dialog screen (lower right) - Title Issues - under Invoice Selections. Use the search engine in the viewer to find title. It’s EZ to see those investor accounts receivables line items that have title issues, it’s kinda in your face! It shows right on the report. Both in the line-item detail and also in the summary total section for each investor.

Noteworthy side bar – if you want to see the total true balance for one or all owners, you gotta include the title issues. And it's all stuff you gotta know if/when you find you’ve got to do a re-bill on it.

Also noteworthy – AR03 payments cannot be applied to line items for investors being billed and flagged with title issues.

WM03W – DOI By Well Report

For investors flagged as title issues, WM03W shows “title!” on the left side of the standard default report. When the report is generated, a notice appears on the screen that some owners with Title Issues were found. Search for “title” in the search engine box to find them. Even better? The WM03W - Options sub-dialog screen includes a box for “Only Owners with Title Issues”. Probably a good idea to review every now and then.

JB30 – Owner JIB Summary History

Has an option to Include Title Issues Y/N/Only.

RP28/RP29 – Owner History Revenue/Expense

Will not include title issues investor transactions.

Assignments

If/when a title issue investor interest is transferred to another investor, the investor to which the interest is assigned will not be flagged as title issues. It is assumed that any interest transfer is due to the title being cleared, or a DOI write-off. A rebill may be executed to credit the title issues owner and charge the new investor who is getting the interest and the charges.

What about tying out the AR sub to the GL?

If it ties now, it should always still tie. If you’re following the SSI Oil and Gas Accounting Software recommendation and checklist, an AR08 – Accounts Receivables Monthly Aging report is generated at month-end, following the month-end JIB and revenue processing, and tied out to the General Ledger Accounts Receivables control account. Notice…the AR08 has a big yellow note (lower right – you can’t miss it!) saying that if tying out to the General Ledger for AR Month-End close, need to Include Title Issue Invoices. You can guess why…right? Because even though the title issues investors are suppressed from printing the JIB, they’re still charged for their proportionate share of well charges (based on the DOI) and updated to Accounts Receivables, and during the JIB processing/posting those amounts will be included when updated to the General Ledger Accounts Receivables control account.

The beautiful thing about this?

It’s easy to identify the title issues investors so that some time in the future you can do something with them. It’s practically a neon sign on the investor AR05 to know at a glance how much an investor was billed as a title issue. It also minimizes the junk paper that just gets thrown away or piled up on a credenza waiting for that moment you decide you can’t put it off any longer.

The process is, of course! also documented in SSI Help. Check it out! Use it! It is an EZ application and an EZ solution to make YOUR job EZier!

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