Revenue Application Overview

Setup Preferences. Go to Revenue – Setup – Preferences

G/L Month-End Reset controls the Entry mo/yr, same as other applications within the system.

Use Invoice box must be checked to access the invoice entry menu.

Use Transaction Codes is optional.

Default method: select Split/Transaction Code if you plan to use transaction codes for shortcuts. Select Account if you plan to enter the whole G/L account string upon entry.

Setup a subsidiary

Go to Revenue – Setup – Subsidiaries

Subsidiaries are used to classify types of revenue, sales, etc. Payors will later be added within a subsidiary.

Application Code: Revenue

Subsidiary Type: select either Open Item or Balance Forward. See below for descriptions of each. If Validate Item# is checked, the Item (invoice)# must exist before a receipt can be applied toward it. This helps prevent errors in keying the Item# and applies to Open Item subsidiaries only.

Scheduled Account: this is the G/L account that will be charged. For open item subsidiaries, this should be an accounts receivable account.

Flip Sign: Used for sign presentation in revenue journals. Check this box if this is an Open Item subsidiary.

Validate Reference#: ignore

Active: must be checked to allow entry in this subsidiary.

Open Item

The following is an example of a subsidiary setup as Open Item. This screen is the payor history browse. As you can see, invoices and receipts are entered with an Item# (invoice#) and an open item total is kept for each Item#.

An Open Item subsidiary should be set up with a balance sheet (asset) account, such as accounts receivable, as its scheduled account. Invoices are entered to a revenue-type account. Upon posting the invoice batch, the computer auto-generates a debit to the scheduled account. Receipts are entered to Cash and, upon post, the computer auto-generates a credit to the scheduled account.

When entering an invoice, you may enter the G/L account# (revenue), or you may elect to use a transaction code instead. Transaction codes are set up in File – Transaction Codes. In this example, the company uses transaction codes of I (invoice) and R (receipt) as shortcuts so that during entry, they can key the transaction code (I or R) instead of the whole account string. Use of transaction codes is optional.

Balance Forward

The following is an example of a subsidiary setup as Balance Forward. As you can see, the entries follow one after the other, with a running balance at the end.

Setting up a Transaction Code (optional)

Revenue – File – Transaction Codes

Transaction Code: a transaction code is added under a subsidiary; therefore, the same transaction code can be used under more than one subsidiary if applicable. This can be any name (1 or more characters).

Account#: the G/L account# that the transaction code represents. An invoice would have a revenue-type account; a receipt would have a cash account.

Sign: dictates whether this type of entry is a debit or credit to the account# above. An invoice would be Credit to the revenue-type account above. A receipt would be a Debit to the cash account above. (The subsidiary’s account dictates the “other side” of the entry.)

Transaction Type: select either Revenue Invoice or Receipt, whichever is applicable for this transaction code.

Add payors: Go to Revenue – File – Payors

Payors are added within a selected subsidiary.

Payor# is assigned by the user.

The only required entry is Payor#, name, and must be active to allow entry.

Invoice/Receipt Entry: Go to Payors – Entry

Invoice Entry and Receipt Entry are separate menu options and have separate batches (invoice or receipt) depending on the selected menu option.

The default method was set in Preferences. You can select another method here.

Item (invoice)# is assigned by the entry person.

Method: Select Split/Transaction Code if you want to enter a shortcut transaction code. Select Account if you want to key the G/L account#. The appropriate entry boxes will be presented when the entry method is selected. The CR (credit) and DR (debit) accounts will be presented so you can see how the entry will hit G/L.

Reference#: Ignore. This is usually used for recording a receipt#, if a company issues a paper receipt to a customer.

Transaction Date: This can be the invoice date or receipt date, whatever is applicable. The system will add an entry date (today’s) to the entry, same as in other applications.

Posting a batch: Go to Revenue – Payors – Entry – Receipt/Invoice—whatever is applicable.

Entries can be edited or deleted while in batch. Once posted, you must do reversing entries for corrections.

Once a batch is posted, you can browse the payor history (Payors – Browse History).

Revenue Journals: Go to Revenue – Print

You will probably only use the following two journals.

Transaction Code Journal – a typical history journal of activity by payor.

History Ledger – to print a list of all open items (unpaid invoices), leave the “from” date ranges blank and check the box Print Open Items only.