This procedure allows you to complete income recognition tasks in Contracts.
The contract due dates are very important to contract billing. However, the deferred income program uses the start and expiration dates when factoring the deferred amounts. You must have a consistent procedure in billing the contracts or problems will be encountered. For example: If you bill August yearly contracts in July, the start and expiration dates are moved to the next year. If you do the Income Recognition report for July, the renewed August contract will not be on the report.
Example:
The income Recognition Report as of 07/31/94 has been run and properly updated.
August 1994 billing begins and is completed. No September 1994 contract billing is done.
When you are ready to do the 08/31/94 Income Recognition Report, you must complete the following step first. Run the ACRLFIX as of 07/31/94. This fixes any contracts that may have been held back from renewing at their normal renewal time. They are corrected when you do the 08/31/94 Income Recognition Report.
Print the Income Recognition Report dated 08/31/94. Make sure you enter Y to update the final copy.
You may begin September 1994 Contract Billing.
Special Notes:
A. If renewing contracts which do not expire on the last day of the month, the following must be done to change the base rate for the new billing year: Enter the old base rate in the Prior Base Rate field of Accrual Changes.
B. If a contract was billed in error, void the invoice, reset the first due date(s), and reset the start and expiration dates if the contract was renewed. Along with Contract Changes, the Accrual Changes program must be accessed to change the Prior Start Date, Prior End Date, Prior Bill Period, Prior Base Rate, and Prior Liability fields.
C. Use of the Deferred Income programs always updates the start and expiration dates of the contracts by one year regardless of the billing period.
D. Income Recognition updates the Contract Year-To-Date and Contract Fiscal Year-To-Date fields.
E. Billing a renewed contract updates the fields mentioned in B.
Please call La Crosse Management Systems, Inc. if you have any questions. We appreciate your calls. (608) 784-8400.