The Day End Processing function creates all Sub ledger and General Ledger transactions.

Service Manager Day End Processing costs entries in Inventory Control, creates a batch in Accounts Receivable, and creates a cost batch directly in the General Ledger.

The Accounts Receivable batch contains Revenue entries generated by Service Manager, and the General Ledger Batch contains Costs, Work in Progress (WIP), and Warranty entries (the latter as applicable).

Please note that Accounts Receivable posts Tax and Currency information together with the Revenue transactions to the General Ledger.

Day End Processing creates these transactions by processing the following Documents:

Jobs/Sales/Agreements

1.Posted Invoices

2.Posted Credit Notes

3.Posted Cost Entries

Post Due Work in Progress

Cost Entries from Service or Item Detail Lines are debited to WIP, and the Service Cost Clearing and Inventory Control accounts are credited.

Recognize Revenue and Expenses

Day End processes posted Invoices, posted Credit Notes, posted Adjustments, posted Cost Only entries and recognizes Revenue and Expenses in the Income Statement, reversing WIP and Billings accounts in the Balance sheet. i.e., Credit WIP, debit COGS, debit Billings and credit Revenue.

Methods available to Recognize Revenue and Expenses

1.By Selection of Document(s)

2.By Job Status

3.By Percent Complete

4.By Percent of Budget Revenue

5.By Percent of Budget Cost

WIP Recognition State

Additional options have been added to the Job system to improve the management and reporting of revenue and expense recognition for WIP jobs.
 
Revenue and expense recognition can now be controlled at line level which allows for improved revenue and expense matching.
 
A new field has been added to the database for services and items called “WIP Recognition State”.
 
It has 3 states:
 
1- Not applicable (for non WIP jobs)
2- Recognized
3- Unrecognized
 
This value is set automatically by the program

Process Claimed Warranties

When Day End processes an invoice that contains Warranty Cover, the Warranty Claims account is debited with the Cost of the Item or Service and the Service Cost Clearing account or the Inventory Control account (as applicable) is credited.

The Processing of Claimed Warranties reverses these entries. Warranty Control is credited and the COGS accounts are debited. This process usually occurs with the invoicing of the Warranty Claim so revenue and expenses are matched and the profitability of the claim can be calculated. i.e., the Warranty Claims Control account is cleared.

Note: Journals are not reversed based on Claim values. The Claim value is only used to default the value to be claimed when invoicing the Warranty Claim to the Manufacturer or Vendor.

Day End Processing will set the Warranty claim record to a Completed status. It cannot be altered once this occurs.

If a Job uses WIP accounting principles, the cost will be posted to WIP first. On recognizing WIP the Cost is transferred to Warranty Claims Control, and on processing claimed Warranties, the Cost is taken up and reversed out of the Warranty Claims Control account. This process can occur at the same time if all options are selected during Day End Processing.

Process Due Amortization

Amortization is a process available in Agreements only. Its primary function is to allow the matching of Revenue and Expenses over time on an accrual basis as prepaid Agreement Revenue expires.

Only Sale of Agreement detail lines can be amortized and they must have a zero cost component.

When a Sale of Agreement Document that includes an Amortization Detail Line is Posted, Day End Processing will post a debit to Accounts Receivable Control and a credit to the Unearned Income Balance Sheet Account.

As a further option of the Day End process, if you select Process Due Amortization, the Day End process will check all outstanding Amortization detail lines, and compare the Day End Process Date with the date that the Amortization is next due. If the Day End Process Date equals or exceeds the Amortization date next due, a journal is automatically created in a General Ledger Batch. Unearned Income is debited and Revenue is credited as per the schedule of recurring Amortization postings set up in the original Sale of Agreement detail line.

Post Accounts Receivable Remittance

Receipts can be applied as a prepayment, or as a payment to an invoice during the Posting process in Document Entry.

After Posting and running a Day End process, if the Post Accounts Receivable Remittance option is selected, a Cash Receipts Batch is generated in Accounts Receivable.

A Prepayment generates a debit to the Bank Account and a credit to the Prepayment Liability account as specified in Accounts Receivable » A/R Setup » Account Sets. Refer to the Sage 300 Accounts Receivable documentation for more information on the prepayment liability account. The Job Number references the transaction, and Accounts Receivable handles the reversal process out of Prepayments as it is applied to an invoice.

A general receipt creates a debit to the Bank Account and a credit to Accounts Receivable Control.

Age Completed Jobs To History

This process will not create any Journal Transactions, but will move Completed Jobs to History based on the duration specified in Company Options » Defaults tab.

If today's date is greater than the Job Completion date plus the duration specified, then the Job will be moved to History. A Job can be reopened at any time if you have security rights to perform this operation.