ACCOUNTING SYSTEMS.
The oil industry on the Pacific coast is young, consequently much experimenting has been done in the way of accounting systems for oil companies. It is only during the last few years that operators have realized the importance of efficient accounting systems whereby a check can be kept upon operations, and monthly exhibits obtained showing operating results in concise form. Many companies at present have systems burdened with detail, and either a proper answer is not obtained or else the results do not justify the effort. Too often there is a duplication of work at the field and main office. With a properly arranged system the entire details should be handled at the base of opera tions, which is the field, and information transmitted to the main office in consolidated form so that results are easily obtained and no duplication of work is necessary. This can all be done with out effecting control by the main office upon the operations at the field and at the same time it provides for a complete check on the detailed accounting.
The chart of accounts (see folding plate) is a graphic represen tation of the entire classification of accounts, showing the relation that one account bears to another and of all accounts to the bal ance sheet. The operations of an oil accounting system may be classified as follows : (a) Development (b) Production (c) Pay Roll (d) Purchasing and Stores (e) Teaming (f) Miscellaneous Departments (g) Reports (h) Financial Statements Development (Drilling). At the end of every twenty-four hours a Drillers Tower Report (Form No. 1) is Sent to the office with time cards. From the information contained on this report the Daily Drilling Report (Form No. 2) is made out in duplicate, original to main office and duplicate, after being recorded on the Well Log (Form No. 4), is sent to the superintendent of development. It is filed by well number and date.
The well foreman each day makes out the Well Pullers Report (Form No. 3) giving a detailed description of the well-pulling operation of each well. It is sent to the superintendent of develop ment and is filed by well number and date.
Production (Pumping). At the end of every twenty-four hours the Daily Report of Wells Pumped (Form No. 5) is made out in
duplicate by the pumpers and shows details and conditions re garding pumping. The original is sent to the main office and a duplicate is given to the superintendent of production. After re cording on the Recapitulation of Oil Production (Form No. 6) they are filed according to pumping plant and by date.
When oil is delivered to the consumer, Run Ticket (Form No. 7) is made out in triplicate. The original is given to the consumer, a duplicate sent to the main office and a triplicate held in a numeral binder at the field office. Run Tickets are posted to Recapitulation of Oil Production (Form No. 6). The main office upon receipt of duplicate, checks extensions and then posts same to Consumer Statement in duplicate, entering thereon ticket number, quantity and amount.
The record of oil in each tank is kept on the Recapitulation of Oil Production (Form No. 6). Postings are made to this form from Daily Report of Wells Pumped (Form No. 5) and Run Tick ets (Form No. 7).
System. The princi pal divisions of the pay-roll sys tem are : (a) Hiring.
(b) Time Keeping.
(c) Time Recording.
- (d) Discharging.
(e) Paying.
The original record of employ ment is the Hiring Card (Form No. 8). This form is filled out by foremen for each employee starting to work, and is sent to the pay-roll clerk who makes no tation of same on Pay-Roll Record (Form No. 9). It is then placed in a vertical file in numerical or der by employee number.
Drillers and toolers record their time each day on a Drilling Time. Card (Form No. 10) showing their name and number, well number, time and duty engaged in. These cards are dropped in a box kept at boarding houses for that purpose and, after approval by the foremen, are collected each day by the timekeeper. The timekeeper figures extensions and checks the time cards to see that each man has accounted for a full day. He then enters the time on the Pay Roll (Form No. 9) opposite name of employee and under proper day and enters total amount to Record of Time Cards (Form No. 11) under the corresponding day; then posts to column sheet for distribution of pay roll. The cards are then filed numerically by number of employee.