Daily Amortization Utility for Service Contracts GL-1060

Transcription

1 Daily Amortization Utility for Service Contracts GL-1060 Overview This Extended Solution provides an amortization utility which uses a daily rate for the purpose of recognizing revenue on service contracts (Sales Order Invoices). These service contracts can have varying terms: 6 months, 12 months, 18 months, for example. The start and stop date of each contract is defined in the Invoice header, stored in Custom Office User Defined fields. It is expected that the utility will be run once a month. As part of the utility s function, journal postings would then be created for each service contract for the monthly accrual amount calculated at a daily rate from the deferred revenue account to the revenue account. An Amortization Schedule Report has been added to allow you to view expected revenue postings for future months. The Custom Office module and the Sales Order module are required in order for this Extended Solution to function. If the report is run for a period that has already been amortized, you will get undesirable results. Installation Before installing this Extended Solution, please verify that the version level(s) printed on the CD label are the same as the version level(s) of the MAS 90 MAS 200 module(s) you are using. For further information, please see the Upgrades and Compatibility section below. Check your Shipping Manifest for a complete list of Extended Solutions shipped. For detailed installation instructions, please refer to the Sage website at: Installing Your Extended Solutions under Windows From a CD If you have the autorun function turned on for your PC, the installation program will start up automatically. If not, find the autorun.exe file on your CD-ROM drive and double-click it to start the installation program. Follow the on-screen instructions Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 1

2 From the Sage FTP site When your Extended Solution is ready to be downloaded, you will receive an from telling you that it is ready. The will contain the Customer Name, Cross Reference, a case-sensitive Password, a link via which you can download your Extended Solution, instructions, and a Shipping Manifest. If you have any problems with this order, please extendedsolutions.na@sage.com and we will assist you during normal business hours. Extended Solutions Control Center Installing any Extended Solution will add an Extended Solutions Control Center to the MAS 90 MAS 200 Library Master Utilities menu. When you open the Control Center, the following options will be available: Extended Solutions Manuals Remove Extended Solutions Unlock Extended Solutions Merge Installation Files Extended Solutions Setup options Custom Office If you customize your MAS 90 MAS 200, then you must run the Update Utility every time you install this Extended Solution. Setup Upon completion of software installation, you will need to access Extended Solutions Setup from the General Ledger Setup menu. Select this part number and the Setup screen for this Extended Solution will appear (Figure 1). Check the Enable Extended Solution box to activate this Extended Solution. The manual for this Extended Solution can be viewed by clicking the Manual button next to the Enable Extended Solution check box. It can also be viewed via the Extended Solutions Control Center (see Installation, above). Figure Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 2

3 Answer the following prompts: A/R INVOICE HISTORY HEADER UDF FOR CONTRACT START DATE: Select the date type UDF which holds the Service Contract s Start Date. You will need to set up an S/O Invoice Header UDF and have it flow through to an A/R Invoice History Header UDF. A/R INVOICE HISTORY HEADER UDF FOR CONTRACT STOP DATE: Select the date type UDF which holds the Service Contract s Stop Date. You will need to set up an S/O Invoice Header UDF and have it flow through to an A/R Invoice History Header UDF. G/L ACCOUNT FOR DEFERRED REVENUE: Specify the G/L account which will be used for deferred revenue posting. G/L REVENUE ACCOUNT: Specify the G/L account which will be used for the revenue posting. AMORTIZATION SOURCE JOURNAL: Specify the Source Journal to be used by the utility when moving funds from the deferred revenue account to the revenue account. EXCLUDE SALES TAX: If you check this box, the Sales Tax amount will be excluded from the amortization calculation: TaxableSalesAmt + NonTaxableSalesAmt + FreightAmt + SalesTaxAmt DiscountAmt - DepositAmt - CreditCardPaymentBalanceAmt The Amortization Utility will be added to the General Ledger Main Menu as an Update/Period task. The Amortization Purge Utility will be added to the General Ledger Period End Menu as an Update/Period task. The Amortization Report will be added to the General Ledger Reports menu as a Report/Form task. Please review your security setup in Role Maintenance and make appropriate changes. You should visit this Setup screen after each upgrade or reinstallation of this Extended Solution. Operation Sales Journal Update Sales Order Sales Journal Update will be modified to look for any Invoices which have non blank values in the Start date and Stop Date UDFs; when encountered it will then write data to the Service Contract header file. This data consists of the Invoice Number, the Salesperson, the Customer Number, the Start Date, the Stop Date and the Invoice Total. If Excludes Sales Tax is checked, the amount written to Invoice Total will not include the Sales Tax amount Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 3

4 Amortization Utility This option can be found on the main menu. When accessed, you will be prompted for a Year and Month (Figure 2). Figure 2 When you click Print the Amortization Utility will sift through the Service Contract header file looking for Invoices where the month and year defined on the selection screen falls into the Start and Stop Date range of the Invoice. As Invoices are located, it will then look to the Service Contract Detail file to see if there is a record that an Amortization has been made for this month and year. If there is not an amortization record for this date the Invoice will be selected. Next, a daily amortization rate will be determined for the Invoice by dividing the Invoice Total by the total number of days in the term. This daily amortization rate is accurate to six decimal places. Then the number of days which match the selected month/year will be multiplied by this daily amortization rate and rounded to the nearest cent. For example: Invoice , $600 UDF Term From: 11/15/05 UDF Term To: 05/15/ days in the term would come up with a daily amortization rate of $ a day. Utility is run for: January, 2006 Therefore 31 days are processed for this Invoice $ a day x 31 days = $ , which we round to $ for the monthly amortization. In special cases where the selected month contains the last day of the term of the Invoice, the monthly amortization will be the remainder of the Invoice Total after subtracting the monthly amortizations from previous months. This ensures that the Invoice Total will always equal the sum of the monthly amortizations at the end of the term. When the selection is complete, a report will print listing all the selected Invoices and the calculated Amortized Amounts (Figure 3) Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 4

5 Figure 3 You will be prompted to update the amortizations to the General Journal files (Figure 4) after the report is printed. Figure 4 Saying Yes will create a General Journal Entry for the Source Journal specified in Setup using the ending date of the month selected + the year as the posting date there will be one transaction for each Invoice the Journal header & detail comment will be : Amortize IN-####### You will then be prompted to print the General Journal (Figure 5). Once the journal entry is made, a record will be made in the Service Contract Detail file for the amortization recording the Journal number, the date and the amount. Figure 5 Failure to update the General Journal when prompted could produce undesirable results Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 5

6 Amortization Schedule Report This option has been added to the Reports menu. The report will detail what is sitting in the Service Contract files by Invoice Number. When accessed, you will be prompted for the Sort Option, either Invoice Number of Salesperson/Invoice Number as well as the Year and the Month (Figure 6). Figure 6 The report will then list for each Invoice, its Salesperson, the total amount which has already been amortized as well as the number of days recognized. Next are four aging columns. These columns will be labeled with end-of-month dates beginning with the Month and Year you specified on the Selection screen and project the amortization for each month. The Balance column contains the remaining Invoice balance that would be collected after the fourth aging column. Under each column will be the expected number of days in each aging month as well as the balance of days that would remain to be amortized after the fourth aging column. There will be monetary totals on all numeric columns. If you Sort by Salesperson/Invoice then there will be subtotals by Salesperson. If you select the Invoice sort and fill in January and 2006, in the middle of January of 2006 for the above item then the following will print (Figure 7): 2009 Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 6

7 Figure 7 Figure 8 is an example of the same criteria, only with the Salesperson/Invoice sort. Figure Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 7

8 Amortization Purge Utility This option has been added to the Period End menu. When accessed, it will prompt you for a year and month. After you click Print the program will scan the Service Contract files looking for Invoice records where all revenue has been recognized by comparing the sum of Amortization Amounts to the Invoice Amount (Figure 9). Figure 9 A report will print listing what Invoices have been selected for purging (Figure 10). Figure 10 You will then be prompted to purge (Figure 11). Figure 11 ODBC Dictionary The files listed below have been added, or changed, in the ODBC Dictionaries by this Extended Solution for Crystal Reports purposes. File: GL_ServiceContractHeader_001 GL_ServiceContractDetail_001 Fields: All Fields All Fields 2009 Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 8

9 GL_ServiceContractDetailRpt_001 GL_ServiceContractDetailWrk_001 All Fields All Fields Be aware that the ODBC Dictionaries may contain other files and data fields that will be unavailable without their corresponding Extended Solutions installed. What s New With the release: Added the Setup option to Exclude Sales Tax. Upgrades and Compatibility The installation CD is labeled with the version of the MAS 90 MAS 200 module for which this Extended Solution was prepared. This Extended Solution will check its compatibility with the appropriate MAS 90 MAS 200 modules and will be disabled if an incompatibility is found. If you upgrade your MAS 90 MAS 200 modules, this Extended Solution must be upgraded as well. Your MAS 90 MAS 200 dealer can supply this upgrade. Documentation Only changes made to the standard operation of MAS 90 MAS 200 have been documented in this manual. Operations not documented in this manual are standard procedures of MAS 90 MAS 200 processing. Standard MAS 90 MAS 200 processes, data entry screens, inquiry screens, reports, updates, etc., have not been changed unless addressed in this document. Parts of this document may refer to the Specific Purpose Rule. When referenced, the described feature was developed for a specific client to its specifications and may not conform to generally accepted MAS 90 MAS 200 standards and procedures. These features may or may not benefit you in your application of MAS 90 MAS 200. Acknowledgments 2009 Sage Software, Inc. All rights reserved. Sage Software, MAS 90, and MAS 200 are registered trademarks or trademarks of Sage Software, Inc. All other trademarks are the property of their respective owners Sage Software, Inc. All rights reserved. GL-1060 (Revised 04/09) Page 9