Hierarchy
IS-OIL (Software Component) IS-OIL⤷
IS-OIL-PRA-REP-ROY (Application Component) Royalty Reporting⤷
OIU_REP (Package) Production, Tax & Royalty Reporting
Basic Data
| Data Element | OIUREP_MMS_2014_ROY_IN_KIND_FL |
| Short Description | Production: MMS-2014 - Royalty In Kind Flag |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | YESNO | |
| Data Type | CHAR | Character String |
| Length | 1 | |
| Decimal Places | 0 | |
| Output Length | 1 | |
| Value Table |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | ||
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 10 | RIK |
| Medium | 15 | Royalty In Kind |
| Long | 20 | Royalty In Kind |
| Heading | 20 | Royalty In Kind Flag |
Documentation
Definition
A royalty in kind (RIK) arrangement is a situation in which the lessor (MMS, U.S. government, etc.), receives royalties in the form of production (oil and gas), instead of dollars (which would be the usual situation).
This field is used to flag records in which a royalty in kind situation exists (in which the owner takes their portion of the product, rather than taking a payment for their product). When this flag is selected, the reporting process will create a transaction code '06' - Royalty in Kind Transaction - No cash payment to the MMS, and will always default the payment method code to '04' - Royalty in Kind. If transportation is associated with this line, the batch process will then create a seperate transaction code '11' line (transportation deduct), using the payment method code tied to the record via the master data setup.
Typically, for reporting prior to January 2001, this royalty in kind flag will be selected. However, after January 2001, the MMS changed the requirement, so that RIK payments no longer need to be reported. In these cases , if transportation needs to be reported for these transactions, you should create a separate transaction with the transportation cost (being sure to tie it to a contract specifically for booking transportation only) using a manual journal entry (similar to the process used for estimated payments). Then, on the sales type set-up table, you should use the override transaction code, and set it to 11. If this is done, then the system will produce 1 line with a transaction code 11 on it.
History
| Last changed by/on | SAP | 20050224 |
| SAP Release Created in | 46C |
