Summary of Requirement
Brief Background on Analytical Accounting (AA)
AA refers to Analytical Accounting in the rest of this document.
AA setup consists of creating Transaction Dimensions and Codes.
A Transaction Dimension is set to have a data type of String, Currency, Date or Boolean. A Dimension with a string data type is assigned a list of user-created Codes.
Collectively these data types will be referred to as Values. During transaction entry, one Value is selected or entered for each Transaction Dimension assigned to the Distribution Account, thus providing the ability to analyze a distribution by the group of Values assigned to it.
eConnect will be used to create Sales Invoices & Returns in GP. The integration will create one Sales Distribution line (distribution type = SALES) for each sales line on the transaction.
AA Dimensions and Values will also be created for the Sales Distributions during the import. ACMECO sells both non-inventory (insurance) and sales-inventory (travel items). The insurance will have a Deferral Start Date and End Date. These dates will be provided in the AA Values. A special Dimension will be included called “DEFER” that has a Boolean data type. When the Value is TRUE, the deferral module will defer the distribution.
Additional AA Values will also be imported.
All sales transactions will be created in a Sales Batch. A user will log-in to GP to post the Sales Batch. The deferral process will be activated automatically when a Sales Batch is posted.
The deferral module will then:
- Locate Sales Distributions that have the AA Defer flag set to TRUE
- Create a deferral journal entry that debits the SALES account, and credits an associated Deferral Account. For returns the journal entry will credit SALES and debit the Deferral Account.
- Create a deferral schedule
- AA Values will be attached to the journal entry
The deferral is done for SALES distribution lines with a Distribution Type = SALES. This does not include taxes, miscellaneous charges, write-offs, commissions, or any other type of SOP distribution.
The Revenue Recognition window will allow the user to select a Date Range, then display all Deferral Schedules that fall within that range. Executing the revenue recognition process will:
- Create one journal entry for all deferrals schedules within the date range
- Each deferral record will result in a distribution debiting the deferred revenue account, and crediting a Sales account. The Sales account comes from the original Sales Transaction Distribution that generated the deferral schedule, and the Deferred Revenue account was determined during SOP Posting from the Deferral Setup. For SOP Returns the journal entry will credit the deferred revenue account and debit the Sales account.
- AA Values will be attached to the journal entry distributions that match those from the original sales invoice distributions.
- The Journal Entry will be saved in a Batch for user review prior to posting.
This design specification addresses only the deferral for SOP Invoices and returns imported with eConnect, and recognition of that revenue based on a deferral schedule. No functionality is provided for transactions from AP, AR, GL or any other Dynamics GP transaction. The mention of AP in this document address ONLY the inclusion of some fields on windows and tables that could be used for AP deferrals in the future.
View design specification DS0262