Monthly Journal Postings

Monthly Journal Postings for Contracts (optional)

Following entry of a ‘non-monthly’ contract is entered (i.e. annual, 3 monthly, 6 monthly, etc.) the system can be configured to perform the following posting to the nominal ledger.

1. When the contract sales order/invoice is generated total (annual) revenue will be posted to a nominal ledger ‘control’ account.

2. On a monthly basis this sales revenue can be journalled from the nominal ledger control account into the original revenue nominal account (for each contract item). As a default the system will automatically split the contract value evenly on a month-by-month basis, however these values can be edited manually if required (see item 4. below).

To post revenue to the nominal ledger in this way the following process should be used;

1. Each contract must be created with the nominal ledger control account selected and the ‘create monthly journal postings from deferred revenue’ box ticked (on the ‘Contract Details’ tab).

Monthly Journal Postings 1

2. As contract sales orders/invoices are generated all revenue will be automatically posted to the selected nominal ledger control account.

3. On a monthly basis the Monthly Journal Postings for Contracts screen is used to journal revenue between the nominal ledger control account and the original contract sales revenue accounts.

Monthly Journal Postings 2

4. The Contract Maintenance <View Transactions> button can be used to display all previously journalled (posted) and outstanding amounts for the current contract year.

Monthly Journal Postings 3

Manual adjustments to monthly journal values and dates are possible via the <Edit Transactions> button.

Note: This example uses an annual contract split over 12 months. However it is also possible to use this process for quarterly, six-monthly contracts, etc.

5. Month on month the nominal ledger control account will be debited until the balance posted to this account for this contract is reduced to zero (at the end of the contract year).

Monthly Journal Postings 4

Notes

If multiple sales order lines exist on the template, then multiple transactions will be created for each sales order line when the order is generated.
The nominals for the journal postings will be what are on the sales order line and contract on the template at the time of posting the journal, not the original settings. So if the nominal’s are changed on the template, then all future journals will change as well.
If you create transactions on an order already generated from a contract (this can be done by selecting view transactions on the generated order in a contract), then the transactions before today’s date will be marked as posted by default. This is because it assumes that you have done the postings manually. This can be changed after the transactions are created.
Journals are created from the start of the bill cover date. In other words, the first transaction will have a transaction date of the bill cover from date on the contract.
Sales order lines on the template must be set to where you want the revenue to end up, the deferred nominal is set on the contracts tab. When the sales order is created, then the nominal on the sales order line is changed to the deferred nominal. Transactions are created to transfer amounts from deferred back onto the nominal set on the template line.
If contract is deleted, the transactions will continue to post. So be aware that you may want to delete the transactions before deleting the contract. This may change in future versions.

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