Overview
The Scheduled Revenue and Expense object is a tool used to perform journal entries to amortize revenue associated with a billing.
Amortize Revenue
- Navigate to the Billing record for amortizing revenue.
- Click Amortize Revenue.
- Complete the following required fields:
- Start Date - will auto populate with the Billing Cycle Start Date from the Billing record
- End Date - will auto populate with the Billing Cycle End Date from the Billing record
- Amount - This is the total amount of the Billing not the monthly amount.
- Debit GL Account
- Credit GL Account
- Complete any additional fields that are necessary for your business.
- Click Amortize Revenue. The Billing screen refreshes.
Note: This automatically posts a Debit and a Credit to the General Ledger in the Accounts you have specified for each Accounting Period from the Start Date to the End Date.
Note: If the Start Date or the End Date are not the beginning or end of a month, a proration calculation will be done based upon the number of days in the first and last Accounting Periods.
Comments
7 comments
Is there a way to reverse the amortize revenue? I have amortized a bill over 12 months and now I need to void that bill. I had recognized the revenue for only 3 months. Thank you, Ranay
Hi Ranay,
Yes, if you click into that specific billing and scroll down to the amortized related list, you will be able to select the necessary records and unpost them. Once unposted, they can be deleted. You will want to verify that the accounting period is open before unposting. If you have any other issues around this, please submit a ticket to support.accountingseed.com.
Thank you,
Ryan
It appears that the Billing, Payable and Fixed Asset fields on an Amortization entry cannot be updated if the record is posted. Why? They are not fields that are populated to the transaction or in any other way affected by whether the record is posted or unposted. Are there any plans to make these fields editable on posted AE records?
Thanks!
Hi Rebecca,
Can you give a little more detail as in why you would want to make this change? Locking this down controls the relationship between the 2 records since this is where that posting came from.
Thank you,
Ryan
Sorry - I thought I responded to to this!
Being able to correct user error without opening past accounting periods to change non-accounting data is one reason.
Another use case is if you amortize an expense payable and then later decide to capitalize it and want to go back and add a reference to a fixed asset - it's a pain to have to unpost the record - again - in order to change non-accounting data.
As long as you have history tracking enabled so you can see if the related AP/Billing/Fixed asset were changed, I don't see a good reason to lock these fields to the posting status.
An amortized entry allows you to set the credit and debit accounts as well as the GL Variables. It appears that the GL Variables are shared on both sides of the transaction. I have a requirement to post revenue to an accrual account of 2500-0-00-000-0000 (where 2500 is my accrual account and the 0s represent the 4 GL Variables), and then create amortized entries to place that revenue into an account such as 4100-1-22-333-4444. The amortized entry (from what I see) assumes that the GL Variables are the same for both sides of the transaction. Is that true?
Hi Guy,
That is correct. With an amortization entry, the GL Variables will be the same on both the credit and debit side of the transaction. The only place in Accounting Seed where you can post a credit and debit to different GL Variables is in a journal entry. But you need to be very careful when you do that. If any of your accounting variables represent an entity or segment which requires separate financial statements - crediting one GL Variable and debiing a different GL Variable will knock the financial statements out of balance.
If you need to make a transfer between entities, the best method for doing so would be to pass the amount of the transfer through a due to/due from account.
Example: Company A owes Comany B $100. If you perform the transfer by crediting cash for company A and debiting cash for company B, the balance sheet for both companies will be off by $100. Instead, For company A, you should Credit cash and debit a due to/from GL Account. For company B, you should debit cash and credit the same due to/from GL Account. The overrall effect will be the same as the due to/from GL Account nets to zero across the 2 companies, but Company A and Company B will remain separately in balance.
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