DDA SYSTEM

Providence DDA delivers full automation, flexibility, and integration for comprehensive asset management and reporting.

• Automatic asset setup: Automatically creates DDA entries when assets are placed in service via Accounts Payable, eliminating duplicate entry and allowing review/edit before calculations.
• Cost and percentage depletion: Supports both cost (based on annual production) and statutory percentage depletion with automatic comparison to determine allowable deductions.
• Marginal production support: Applies enhanced depletion factors when production falls below qualifying thresholds (e.g., marginal wells).
• State and federal depletion support: Manages independent state and federal depletion factors, applying calculations on a per-interest basis for accurate reporting.
• Integrated data flow: Imports volumes and financial data directly from Accounts Payable, Revenue Entry, and the General Ledger for aligned, accurate calculations.
• Asset roll-ups and property classifications: Consolidates properties under a single depletion property number and uses cross-reference lists for advanced roll-up and classification scenarios.
• Overhead cost allocation: Allocates overhead charges to leases using multiple supported methods and incorporates them directly into depletion calculations.
• Flexible Reporting: Generates detailed cost vs. percentage depletion reports, property-level inquiries, and supporting schedules for audits and tax preparation.
• Additional features: 
  • Section 168f Units of Production Depreciation
  • Cost and Percentage Depletion and Comparison for Allowable Depletion
  • 1,000 Barrel Per Day Limitation for Depletion Calculation
  • 65% of NTI Depletion Limitation
  • Federal and State Reporting for accurate compliance with tax requirements
  • All Mandated Depreciation Systems currently applicable for oil and gas assets