To close the Accounts Receivable period at the end of the month or the end of the year, review the below:
- Journal Entries - Verify all payment plan, event, membership, registration and/or fulfillment journal entries are posted to the General Ledger (and also first generated where applicable).
- Payments/Cash Receipt Inquiry & Reconciliation - Verify all received payments are batched. Make sure to generate and post the related journal entries within the Generate AR, Cash & Adjustments screen.
- Recognize Payment Plan Revenue - If you use payment plan invoices, you may want to use the Recognize Payment Plan Revenue screen. This screen provides filter options to select single or multiple payment plans to be recognized. The recognition allows for two processes:
- Recognize Deferred Revenue - When running the recognize process on a payment plan, which contains at least one ordered invoice, a journal entry is created transferring the invoiced amounts (excl. tax) from the deferred revenue GL account to the applicable GL accounts. When posting the journal entry, a reversal entry is created for the next period (the reversal entry is required as the deferred revenue is recognized when creating the final invoice too).
- Accrue Event Revenue - When having configured an Unbilled AR GL account on the receivable transaction type for PP-INV, the recognition process creates additional lines in the journal entry to post the unbilled amounts within a payment plan (taken the ordered amounts into consideration) to the applicable revenue accounts too. When a final invoice is raised for that payment plan, the accrued revenue will be reversed automatically and the actual revenue will be recognized.
- Event Invoice Accruals - If you use event invoices and want to accrue the revenue for any events which happened in the current month but are going to be invoiced in the next month, the option to generate event month end revenue accruals is available. The journal entry can be created based on move out date/event status and automatically creates a reversal entry for the next period when the JE is posted. The correct accrual GL account has to be configured in Organization Parameter GL100 Accrual Account for EA Entry.
- Reconciliation - Review the A/R Reconciliation screen for your trade debtors GL account and make sure all amounts are associated to an Account (debtor).
- If Cash Book is being used:
- Verify all cash book transactions are posted.
- Run through the Cash Transaction Reconciliation in preparation for the bank reconciliation.
- Make sure Payment reconciliation for A/P has been completed.
- Reconcile the bank accounts.
- Close Period - The Close Period screen for AR provides a screen to check for any unposted AR transactions. If you have followed the above steps, there should not be any. Run the Close Period routine for A/R closing the current period and setting the next fiscal period to Current.
Comments
6 comments
Not sure if I'm missing something, testing the "Recognize Deferred Revenue" as per above and the process creates journals, but the journals that are created are not set up to reverse! So when I post them, I'm having to go back in and manually reverse the journals! I've tested this on v20.90 and v20.93!
Is there an additional step (or configuration) to ensure that ....
"When posting the journal entry, a reversal entry is created for the next period ..."
And any schedule to move this process to v20?
0 upvotes
Jerry,
The recognize deferred revenue process does not need to automatically reverse the entry (and in fact should not be reversed). For this process - the journal entries will be automatically reversed when the payment plan is final invoiced - so no manual intervention is necessary. The article is being updated.
The last line will now read - when a final invoice is raised for that payment plan - the accrued revenue will be reversed automatically and the actual revenue will be recognized.
This is also true with the "Accrue Event Revenue" - as all payment plan final invoices will reverse any previously revenue recognized and replace with the final invoice amounts.
As for the process in v20 - this is scheduled for development in the last quarter of 2018. I expect it will be released then with 20.95 at the latest.
0 upvotes
Is there a separate support article for more detail on Event Invoice accruals?
I would be interested in exploring if it was possible for an event that spans a period end to partially recognize the revenues earned to date the same way we can view revenues in the Daily Revenue report.
If we could accrue the revenue for SO's that have completed to date or partial amounts of their revenues based on days elapsed without needing to wait for the entire event to close to allow percentage of completion revenue recognition.
Example:
SO dates Aug 31-Sept 1, total revenues to be recognized over the 2 days = $100
Event Invoice revenue accrual as at Aug 31 (period close date) = $50
0 upvotes
Michael,
The event accrual will do exactly as you described. This process will accrue for any non-invoiced order as of the period end date. If the item spans the fiscal period end date - the amount accrued will be proportionate to the number of days in the current period and not the full amount of the item.
Filters are then available by Event Status, Event(s), Order Department, or specific Event Categories / Classes or Types.
Recommended option is the default for All Non-Invoiced Orders = Yes, vs the second option which will target order items and order items for events that span the month end. The default option will look for all non-invoiced orders.
It is recommended that a period start date also be used to avoid any old orders that have not been closed out but should not be accrued for OR using the filters to target specific event statuses or events.
0 upvotes
Can I get a listing of the actual functions used for each step? We've lost our Accounting Manager and someone else needs to pick up where he left off.
1 upvotes
Hi Lori,
I think this would be complicated to manage via Support Center conversations. I see you have submitted a ticket and it looks like your Customer Success Manager, Justin, is reviewing it. He'll follow up with you and provide what you need.
Thanks!
Maggie
0 upvotes
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