EDI 819: Joint Interest Billing and Operating Expense Statement
EDI 819 Definition
The EDI 819 Joint Interest Billing and Operating Expense Statement is a specialized document used in the electronic data interchange (EDI) transactions between partners in joint ventures, particularly in industries like oil and gas. It facilitates the detailed sharing of costs and expenses incurred in joint operations, ensuring transparency and accuracy in the billing process among entities sharing interest in a project.
What is EDI 819 Used for?
Entities involved in joint ventures use the EDI 819 to communicate billing information related to shared projects. This document is essential for accurately dividing operating expenses among partners according to their respective shares or interests in the venture. It ensures that each entity receives a clear and detailed account of the costs for which they are responsible, facilitating timely and accurate reimbursement processes.
Key Elements of EDI 819
An EDI 819 document encompasses several critical elements to convey billing and operating expense information effectively:
- Transaction Set Header and Trailer: Marks the beginning and end of the EDI 819 document, ensuring its integrity.
- Joint Venture Identification: Details about the joint venture, including unique identifiers and names of the entities involved.
- Billing Period: Specifies the time frame for which the expenses are being reported and billed.
- Expense Details: Itemized list of all operating expenses incurred, categorized by type of expense, with corresponding amounts.
- Total Amount: The total of all expenses being billed in the statement, including any adjustments or taxes applied.
Benefits of EDI 819
Utilizing the EDI 819 document offers several advantages:
- Transparency: Provides a detailed and transparent record of all expenses incurred, fostering trust among partners.
- Accuracy: Reduces the potential for billing errors, ensuring that expenses are allocated correctly according to the terms of the joint venture agreement.
- Efficiency: Streamlines the billing and reimbursement process, saving time and reducing administrative overhead.
- Compliance: Helps ensure compliance with contractual and regulatory requirements governing the financial aspects of joint ventures.
EDI 819 Document Example
Here’s a simplified example of what an EDI 819 might look like in raw data format:
ST*819*0001
BGN*00*JV12345*20241130
N1*JV*Comparatio Joint Venture*1*94-1234567
DTM*091*20241001*20241031
IT1**5000*AC*Drilling Expenses
IT1**1500*AC*Transportation
TDS*6500
SE*7*0001
Guide to EDI 819 Terms and Elements:
- ST (Transaction Set Header): Initiates the EDI 819 document, identified by a unique control number.
- BGN (Beginning Segment): Provides basic information about the joint interest billing, including the document identifier and date.
- N1 (Name): Identifies the joint venture and participating entities, including tax identification numbers or other identifiers.
- DTM (Date/Time Reference): Marks the billing period for which the expenses are reported.
- IT1 (Baseline Item Data): Details individual operating expenses, categorized and quantified.
- TDS (Total Monetary Value Summary): Summarizes the total expenses being billed in the statement.
- SE (Transaction Set Trailer): Concludes the EDI 819 document, ensuring completeness and accuracy.
This example is designed to give a basic understanding of how an EDI 819 document might look, including the types of information it conveys. Remember, the actual implementation might vary based on specific business needs and partnerships.
Optimize Your Joint Interest Billing and Operating Expense Statements with Comparatio
Ready to enhance your financial management and transparency with EDI 819? Contact Comparatio today to discover how our EDI solutions can streamline your joint interest billing processes, improve accuracy in operating expense statements, and foster stronger partnerships through clear, timely financial communication.
