Customization DS1497: Revenue Recognition

Customization DS1497

Revenue Recognition

Problem Definition:

ACME creates receivables invoices for estimated profit sharing to accrue the revenue. When the actual profit sharing amount is determined, ACME needs to back out the estimated invoice and enter the actual profit sharing into GP.

ACME needs a regular process to reverse the estimated invoices.

Solution Overview:

ACME integrates receivables documents into GP from an outside application.

The estimated Profit Sharing Document will be entered as a Sales/Invoice document type and the customer will begin with “C*”. This invoice will have all necessary distributions entered.

The matching actual Profit Sharing Document will be entered as a Debit Memo document type. The customer will be the same as the Invoice, and the Description will be set to the document number of the Invoice.

The reversing document will be created by WilloWare as a Return. The document number will be the same as the original invoice, but with the prefix of “R_”. This return will be posted and applied to the Invoice.

Design Features:

PMSF & Local Incentive Distribution Matching

Navigation: Transactions>>Sales>>PMSF Matching

A screenshot of a computer screen Description automatically generated

When this window first opens, the scrolling window will automatically fill with all available debit memos. The documents will be saved until processed so this window can be returned to and the changes will be saved.

Security will be used to ensure that only one user is Profit Share Matching at a time.

Field Function
Debit Memo Displays the debit memo that was entered into Receivables Transaction Entry. This list will display all Debit Memos belonging to customers that begin with “C*”. The Expansion button will open the debit memo in Receivables Transaction Inquiry Zoom
Debit Amount Displays the debit memo document amount
Customer Displays the Customer ID of the Debit Memo
Sales Invoice When the Debit Memo is added to this list, the enhancement will attempt to locate a matching invoice using the following logic:

Document Type = Sales / Invoice

Document Number = DB Description

Customer = Removes the “C*” from the Debit Memo and replaces it with “Z*’

If an invoice can be located, it will be displayed here. If an invoice cannot be located, this field will remain blank. An invoice can be manually located using the lookup button. Only invoices that belong to the “Z*” customer linked to the Debit Memo will be displayed. The Expansion button will open the invoice in Receivables Transaction Inquiry Zoom

Note: If the document selected is already partially applied to a credit, the user will be warned and it cannot be selected. If the invoice needs to be reversed, it should first be unapplied

If the matched invoice already has a return generated, the user will be warned and it cannot be selected. This situation may arise if the debit memo was previously processed but the return and invoice were manually unapplied
Sales Amount Displays the invoice document amount
Customer ID Displays the Customer ID on the accrual invoice
Process Mark this checkbox to add this line to the list of documents that will be reversed. The checkbox can only be marked the Matched Invoice field is not blank
MARK ALL /UNMARK ALL Click to either mark or unmark all rows in the scrolling window
PROCESS Clicking Process will create Returns for all marked lines. The return will have the following properties:

Document Type: RM RETURN

Document Number: “R_”+Matched Invoice Number

Customer ID: Same as Invoice

Batch ID: “REV_”+MMDDYYYY

Document Date: Same as Debit Memo

Sales Amount: Same as Invoice

Distributions: Reverse of Invoice. For Example:

INVOICE:

The line will then be moved from the Matching into a Historical table and will not appear again. The History table can be used in Smartlists for future reference.

After the Returns are created, the Batch will be posted. After posting, the Returns will then automatically be applied to the Invoice:

If an error occurs during posting, the user will be warned of the condition. The user will need to correct any issues and re-post the batch. Any returns that needed to be manually posted will also need to be manually applied.

Assumptions/Requirements:

  1. The functionality described above will not work with eConnect, any software that uses eConnect, or any software that directly writes to, updates, or deletes from SQL tables (unless otherwise noted in this document).
  2. The functionality described above is intended for the GP Desktop client.
  3. National Accounts functionality is NOT used.
  4. Advanced Distribution functionality is NOT used.
  5. Multi-Currency is NOT used.
  6. Taxes and Commissions are NOT used.
  7. Unless otherwise noted in this document, reporting is not included in this estimate.
  8. Unless otherwise noted in this document, Word Template functionality is not addressed.
  9. Unless otherwise noted in this document, the enhancement will not integrate with 3rd party products. Some examples of 3rd party products would be:
  • An ISV plug-in product including WilloWare products
  • A dexterity customization designed by another developer
  • Dynamics GP Modules including, but not limited to:
  • Project Accounting
  • MDA
  • Analytical Accounting
  • Copy functionality found in SOP, POP and Inventory
  • Field Service
  • Extended Pricing
  • Manufacturing

For information on this design, or any other WilloWare customization or product, please contact us:

www.willoware.com/contact-me/