Billing Header Level Posting (HLP)

Overview 

Accounting Seed supports two methods of posting Billings and Payables: Header Level Posting (HLP) and Line Level Posting (LLP). There are significant advantages to adopting HLP, which includes the following:

• The reduction of data usage
• The reduction of clutter in the AR Control GL Account
• The ability to include Billing Line Level tax calculations by using a Tax Group. For more information, refer to the Set up AS Native Tax article. 

With Billing LLP, once a Billing is posted, the Billing Line record creates a pair of transactions for each Billing Line:

• The debit entry will always be to the Accounts Receivable GL Account that is set in Accounting Settings
• The credit entry is made to the GL Account that is set in the Revenue GL Account field on the Billing Line. 

Each Billing Line will repeatedly post to the AR Control GL Account. This can result in an inefficient number of debit transactions created to the AR Control GL Account. Additionally, there will be numerous debit transactions from each line cluttering your AR Control GL Account. For example, with Billing LLP, if you have a Billing with 500 lines, this will result in 1,000 transactions to the General Ledger, of which 500 will post to Accounts Receivable. Under Billing HLP, you would have 501 transactions to the General Ledger, of which only one transaction will be posted to Accounts Receivable. 

Under Billing HLP, the debit to the AR Control GL Account does not inherit any of the Billing Line dimension characteristics, i.e., the GL Variable 1-4, Product, Project, Project Task, or the Time Card Variable 1-2. As a result, the GL Variable 1-4 filters will not display on the following Accounting Seed Financial Reporter statements:

• Balance Sheet
• Trial Balance
• Cash Flow Statement.

The filters will not display because these reports include the AR Control GL Account and you cannot filter by GL Variable 1-4 since none of the debits to this GL Account have this information. 

Note: To create GL Variable 1-4 filtered reports on Financial Statements, use the Custom Reporter, but note that this same limitation applies. 

For industries such as, “Not For Profits” that need to segment Balance Sheet accounts by dimension (i.e., GL Variable 1-4), Billing LLP would be a more suitable option. 

With Billing HLP, the number of posted transactions for Billings can be reduced in the following two ways:

• Consolidating debit transactions - Only one debit transaction to the AR Control GL Account will be posted for all of the Billing Lines that are associated with a Billing record. 
• Consolidating credit transactions - A credit transaction is created for each unique combination of the following dimensions:
  
  -- Revenue GL Account
  -- GL Variable 1-4
  -- Product
  -- Project
  -- Project Task 
  -- Time Card Variable 1-2.

Note: Billing HLP is supported for Multi-Currency users.

Note: For users of Accounting Seed’s Orders and Inventory module, Billing HLP is available to be used with the Weighted-Average Cost system. It is not available if you are using the Standard Cost version of the Orders and Inventory module. If you wish to migrate, please contact Customer Support. 

Do you want to view one of the following:

• Sample Billing Record without a Tax Amount
• Sample Billing Record - Accounting Transactions without a Tax Amount
• Sample Tax Group and Tax Rate Information
• Sample Billing Record with a Tax Amount
• Sample Billing Record - Accounting Transactions with a Tax Amount

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