Rrevenue recognition in RE-FX

[Former Member]

Hi All

Business requirement is to create entry as follows from REM:

1)customer account dr

                    to Income received in advance

2)Then to create entry as:

Income received from Advance

                           To income

Is this possible from RE-FX module.

Regards

SMS

[Former Member]

Hi Shantanu,

There are a couple of things that could went wrong. You can try the following based on the thread i read.

Change your contract:

1) Payment Form - 2. In arrear. Try to use advance in your case. When is your condition period? I suggest you try to use IN ADVANCE for now.

2) You use freq. Start of Calendar Year - so I assume the tenant is paying the Company for one or more years in advance. How often do you bill your tenant and how long is the period? Maybe try to change it to YEAR if you have a contract for period 01/01/2014 to 01/01/02016 and you have to bill your tenant once a year.

Hope it will help.

Kon

[Former Member]

Hi

thanks for reply.

I have changed my setting in contract:

Frequency: start of cal year

payment form: advance

but still accrual is not posted

then I have tried to put due date as 01052013 for the condition period 010142013 to 30042013 then system allows me to do accrual posting.

but scenario is different, user wants to post income accrued in feb 2013 for the month of march 2013 and revenue will be recognised in the month of march 2013.

please suggest how to correct it.

Regards

[Former Member]

Hello

If u use accrual/ deferral engine of REFX then the entry will be posted like this:

RERAPP

customer account dr

                    to Income

RERAALCN

Inception

1) Income dr

To Income received in Advance

2) Periodic Recognition

Income received from Advance  dr

                           To income

If you are not using accrual engine, then you have to manually calculate the income received in advance and create two conditions in the system, one to post to advance and mark it as one time condition and second condition to recognize the revenue on periodic basis.

Rakesh

[Former Member]

Hi

1.First entry is clear but we are recognising revenue in first entry only then what is the use of other entry. and also i want to pass following entry in first step:

Customer account dr

              To Income received in advance.

2.Currently i have only one condition for rent and i have done config for accruals and try to run accrual and derfferal but System is not generating second entry suggested by you.

Please suggest what needs to be done.

"error" is contract without any item relevant for accrual/deferral"

3.My next question is that there must be two gl's one for Normal revenue and second for advance -income and how to configure those.

Regards

Shantanu

[Former Member]

Hello

Please be aware that there is no standrad way for system to post to advance account without your intervention.

If you want to post to advance account in firt entry itself, use account determinatin value. This way without adding a new condition you can achieve your purpose.

For 2nd entry, simply create a new condition and add in contract.

Thanks

Rakesh

[Former Member]

Hi

Following error is comming while running accrual.

"error" is contract without any item relevant for accrual/deferral"

Please help.

Regards

shantanu

[rajnikant_verma]

Hi Shantanu,

Mr. Rakesh  sir has suggested well to use the process of accrual/deferral for your requirement.

You have one condition type and i am hoping that you have mapped with revenue GL via account symbol & flow type and with the help of RERAPP you are posting amount on revenue gl.

In accrual/deferral configuration there is one setting of derivation rule for account. Under which you to have maintain two GL account one for start account and another for target account for Inception and Periodic recognition.

                   For Inception you to have maintain advance GL in start account filed and revenue gl in target filed. For periodic recognition you have to maintain revenue gl in start account filed and advance gl in target account filed.

                   Now when you run the accrual/deferral process it will generate two account entries, in inception it will debit the entire amount from revenue gl and credited to advance gl. In second account entries i.e. periodic recognition it will debit the advance GL with periodic amount and credited to revenue GL.

                  Now i think with the help of one condition type only it is full filling your requirement.

After that if still entry are not coming in proper way, then just let me know the posting date and the frequency of your condition type and month for which u r running accrual/deferral process

Thanks

Rajnikant verma

[Former Member]

Hi

I think I have missed  "setting of derivation rule for account".

I will try and let you know in case of any issue.

Thanks Rakesh and Rajnikant for your prompt reply and kind support.

Regards

Shantanu

[Former Member]

Dear Shantanu

The error message you will get if account derivation is missing will be different. From your message it seems you have missed out on other configuration. Though theer could be many reasons for it but my direct hit will be on for you to check if you have assigned your accrual type to flow type.

In the define flow type config menu, enter your configured accrual type under column Acr Type (Def if it is the case of deferral.

Thanks

Rakesh

[Former Member]

Hi

Please have a look at my config and let me know in case of any thing missing:

Flow type

T110-Rent-original flow type

T111-Reference flow type 10

T11A-Reference flow type 20
T112-Refence flow type-210-defered income

T113-Refence flow type-220-accrued expense

T114-Refence flow type-230-deferred expense

T115-Refence flow type-240-accrued income

and flow has been asssigned to reference flow type.

Acrual engine-account determination:

                               START            Target

inception-TRCOCN-   advance gl        revenue gl

inception-TRCORO- adavnce gl       revenue gl

inception-TRRVCN- advance gl       revenue gl

inception-TRRVRO- advancegl        revenue gl

periodic recognition-ANCOCN-REVENUE GL     advance gl

periodic recognition-ANCOROREVENUE GL     advance gl

periodic recognition-ANRVCNREVENUE GL     advance gl

periodic recognition-ANRVROREVENUE GL     advance gl

periodic recognition-TRCOCNREVENUE GL     advance gl

periodic recognition-TRCOROREVENUE GL     advance gl

periodic recognition-TRRVCNREVENUE GL     advance gl

periodic recognition-TRRVROREVENUE GL     advance gl

Please let me know that GL needs to be assigned at any other place.

Still i am not able to generate entry.

Regards

shantanu

[Former Member]

hi

Please help on this error.

Contracts without any items relevant for accrual/deferral

Regards

shantanu

[Former Member]

Hi

please check frequency and let me know if any thing is missing.

Frequency ..  1 ..  in 0month...............................freq.....start of calender year

Prorated  ....  0contarct or rental object start  and end .prorata

amt ref   ...monthly

Calc. Method  ... exact days

Payment Form    ...2 in arrears

due dates   standard.........................................start/end.....move due dates

Please check

regards

shantanu

[Former Member]

Hi

Please help me understanding posting of above two entries.

first i will run RERAPP and book revenue and ststem will pass following entry:

customer acount dr

   to income

and after that at the end of month i will run accrual

and system will pass two following entries automatically .

RERAALCN

Inception

1) Income dr

To Income received in Advance

2) Periodic Recognition

Income received from Advance  dr

                           To income

Please let me know if i am wrong.

Regards

shantanu

[Former Member]

Your configuration is incorrect:

No separate flow type required for accrual/ deferral run

Check hv u assigned TRRVCN to your flow type under Def column for rental revenue ?

[Former Member]

Hi,

First entry is possible through standard periodic posting , and second entry you may have to post against RE object, using a custom program

Thanks and Regards,

Chnadra

[Former Member]

Hi

Please let me know which custom program u r talking ?

Regards

shantanu