Division orders contain the investor lease ownership percentages used to allocate monthly purchases. The list of investors for each lease is called the division order deck. Individual investor interests are called divisions of interest or DOIs. Both the master record for each division order deck and the DOIs themselves have effective and expiration dates. The monthly purchase allocation process uses these dates to build the current period division order deck.
Division order decks have the following properties in Claws:
- The DOI records in each DO deck contain two interest percentages. The net revenue interest (NRI) is used to allocate gross revenue, taxes and general lease expenses to all lease investors. The gross working interest (GWI) is used to allocate joint interest billing (JIB) expenses to the working interest partners only.
- When a portion of the lease revenue is taken in kind by one or more working interests, Claws division orders can be used to allocate amounts less than 100% of the total purchase.
- Division orders can be applied to a single lease commodity or all commodities on a lease.
- Division order special handling lists allow users to exempt individual investors from severance tax or expenses. Users can also reassign tax and expense liabilities from one group of lease investors to another in order to fulfill contractual obligations to the investors.
- Each DOI record can contain instructions for withholding federal or state taxes from the investor’s payments.
The division order system also performs these additional functions:
- Produces division order royalty confirmations that can be either printed or emailed.
- Processes settlements that transfer both DOI ownership and DOI suspense from an owner to one or more new owners. The settlement process can also settle multiple DOIs simultaneously with a single settlement.
- Transfers escheated funds to state authorities.
- Creates custom legal suspense codes to withhold investor funds from payment.
- Stores transaction level investor suspense by lease, commodity, production period and accounting period.
- Shows DOI ownership history.
- Creates DOI listings by lease or investor.
- Produces multiple reports listing escheat funds.
- Produces suspense settlement reports.
- Generates multiple suspense reports in summary or detail by lease or investor.
- Creates one-time disbursement decks for processing special issues.
- Includes a user notes feature to track important information including copies of critical documents.