ARDR A/R Deferred Revenue Posting for Sage 100
This enhancement allows future Revenue and Deferred Postings to the General Ledger to occur during the A/R Invoice Update. A/R Invoice Data Entry has been enhanced to have two new fields: Number of Months and Start Date. When these field values are entered by the user, future postings will occur on the same day each month, for the number of months specified, for each Miscellaneous Line Item that has a Deferred Revenue Account setup in Miscellaneous Item Maintenance.
During A/R Invoice Update, if a Deferred Revenue Account exists in Miscellaneous Item Maintenance for a Miscellaneous Line Item, then the posting to Revenue that would normally occur is changed to post to Deferred Revenue, for the Posting Date. Future postings are then created as follows:
Debit to the Deferred Revenue Account for that Item as set up in Miscellaneous Item Maintenance.
Credit to the Revenue Account for that Item as set up in Miscellaneous Item Maintenance.
The amount posted for the “future” Debit and Credit are the Line Extension divided by the Number of Months.
This enhancement is beneficial to companies that sell Support Contracts or Maintenance Plans. The objective is to credit the overall Contract/Plan amount to Deferred Revenue for the Posting Date, and then credit Revenue and debit Deferred Revenue in future months.
This product works best when there is a dedicated Miscellaneous Item for Support Contracts or Maintenance Plans set up with a Deferred Revenue Account.
A new History file has been created that is posted to when each “future” G/L Posting is posted. This file contains one record for Year/Month/ItemCode/InvoiceNumber/Sequence. This allows a Crystal Report to be created to report deferred revenue forecasting.