Hauling Contracts are contracts in which you only handle the transportation of the oil. You do not buy the oil from the Lease Operator or sell it to another party.
 
 

Company Maintenance

Within the First Purchaser module > Company Maintenance > Company > First Purchaser Tab > Billing/Hauling sub-tab: Designate the “Freight Bill To Account, Income Account, Income Sub-Account (if needed), and Journal #. Note that new accounts and/or journals may need to be set up on the General Ledger before completing this step.

Price Contract

A price contract must be set up to document the applicable hauling rates and properties.

Contract Number: A unique alpha and/or numeric code is required.

Type: In most cases, the product that will be hauled must be designated. This field would be set to “OIL” or “Water.”

Name: Enter the contract's name. The operator's or geographic region's name is commonly used.

• General Tab: The information on this tab is informational and optional. None of it is required to process hauling run tickets or statements.
• Notes Tab: Memo field that can be used to document comments or notes related to the contract. (Optional)
• Pricing Tab: All Pricing information is located on this tab. 
  • Effective Date - This field is optional, but it is recommended that it be populated so that date-sensitive hauling rate changes can be used. If hauling rates are not likely to change, then this field can be left blank.
  • Purchaser - The entity sending out the hauling invoice needs to be populated here. To add a new purchaser, press the [F12] key and then add; make sure to change the Sub-Table to “Purchasers” when adding the new entity. Note that the operator tab of the “Purchaser Type” must be set to “Run Ticket is billed by Hauling Statement.”
  • The Price Index Number through Early Pay Group should be grayed out and blank. If you can enter data into these fields, then your Purchaser Type is set up incorrectly.
  • Est BBL Per Day: Optional field.
  • Billing Hauling Rate Code: designate the applicable Hauling code. See Hauling Rate Code for setup instructions.
  • Freight Bill: To Designate to whom the freight bill is sent. (Note: Sub-Account code uses the Sub-Table linked to the Freight bill to account)

Billing Hauling Rates

Maintenance screen access is located under Pricing/Other File Maintenance > Scales and Rates > Hauling Rate.

Mileage Rates tab

These are used for mileage-based charges. Populate the thru miles and rates as applicable. For example, if our Hauling agreement calls for a fee of $0.50 per mile for the first 100 miles and $0.75 thereafter, we would set up the first line item (click the + to add a new line) with 100 entered under Thru Miles and .5 under Rate. For line two, we would enter 9999 under Thru Miles and 0.75 under Rate.
 
Additional Rates by Property tab

This option allows you to code a property-specific fee per barrel that can vary based on miles. For example, all loads picked up from Property LA01 have an additional fee of $0.25 per mile. We would set this up the following way.

If the rate varies by miles, additional lines can be added. For example, there may be an additional property-specific $0.25 fee per barrel if the distance traveled is less than 25 miles but a $0.50 fee per barrel for distances greater than 25 miles.

Additional Pay Rates tab

 
NOTE: There is a Test button at the bottom of the Billing Hauling Rate Maintenance screen, where you can enter “what if” data to test your surcharge settings.

Once the contract is set, it must be added to the Property Maintenance > Price Contract tab.