5 Tips For Making Sure Your Data Converted Successfully
Having your data converted from one oil & gas accounting system to another can be either a joy or a pull-out-your-hair experience. Once the data is converted you must do some checking to make sure that it converted correctly before operating the new software as your production system. Here are 5 things that must be checked to make sure the data converted correctly.
Since the heart of a revenue distribution/joint interest billing system is the division of interests, you must make sure that the DOI converted correctly. The easiest way to check this is to look at the interest totals for each well to make sure they still add up to 100%.
Make sure that those owners and interests that were “on hold” in the old software are still marked as being held in the new software. You don’t want a surprise of several extra checks showing for owners that shouldn’t be receiving checks the first time you run a distribution in the new software.
If you had the suspense balances for the owners converted, make sure that the converted balances match the balances from the current system. Otherwise you’ll be paying out more or less than you should the first distribution or billing that is run.
The owner totals are where the 1099 amounts come from so you must make sure that the amounts match the current system before continuing. Otherwise the 1099s at the end of the year will be incorrect.
Most people don’t think they have time to run a parallel revenue distribution or joint interest billing, but this is the best way to catch conversion mistakes. It is also the best way to gain peace of mind in the conversion process when you see the statements and checks matching. Sometimes you find the mistakes were with the old system in that it wasn’t handling something properly that was never caught. We’ve seen this repeatedly.
Data conversions are not for the faint of heart, but there are some things you can do to make sure that the conversion goes smoothly.
Source: SherWare Blog