AccrualProcessing Help
Learn how to accurately record business transactions using accrual accounting.
The Accrual Processing program is used in a Receivables environment to move money from Unearned Income Accounts to Earned Revenue Accounts on a regular periodic basis, such as monthly.
In an Accrual basis of accounting, revenues are reported on the income statement when they are earned. (Under a Cash basis of accounting, revenues are reported on the income statement when the cash is received.) Under the Accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid. The Accrual Processing program generates this expense and moves the money into the proper Revenue Accounts. The result of this process is an income statement that measures profitability during a specific time period, such as a calendar or fiscal month.
When using this program, the minimum assumptions are that your department:
- Is running as a Receivables-based environment and that the G/L Post Option field on your Static Parameters profile is set to Receivables (Required for Accrual).
- Has a valid Receivables GL Code in the appropriate field, located further down in the Financial Settings group of the Static Parameters profile.
- Has the Use Accrual option selected for all applicable Fees. This option is located on the Fee Update • Additional GL Settings group.
The program uses the above information to determine the Amounts Earned, which are summarized by GL Revenue Account and are displayed on the GL Accrual Report as credits to the respective GL Codes/Account Numbers. The Revenue total by module or grand total is debited against the module Unearned Income Account(s) or the grand total Unearned Income Account, and the net result(s) is displayed on the GL Accrual Report. (Having an Unearned Income Account by module or a single grand total Unearned Income Account is your option and is established in File and Fee Management.
Upon running Accrual, each GL Account will reflect only the Amount Earned for the current accounting period. A month is the recommended accounting period. This process must be repeated at the end of each accounting period, before closing the books for the period (i.e. you might run Accrual on the first day of "this month" for "last month's accrual period). The resulting report can be given to Finance.
To Run Accrual
- Select the modules for which you wish to post Accrual.
- Set your Beginning and Ending Accrual Date range.
- Beginning Date - As a general rule, it is always safe to pick a Beginning Date far in the past, as doing so ensures that any Accrual that may have been missed gets collected in this run. For Example: You might select a Beginning Date of 01/01/1900.
- Ending Date - This should be end of your most recent Accrual period and should not be a date in the future. For Example: If running accrual monthly, you would run accrual on the first day of the "this" month for the period ending on the last day of "last" month, such as running Accrual on 01 May for the period ending on 30 April.
- Ensure your Posting Cash Drawer is correct. In most instances, this should be the Drawer to which your User ID is linked.
- Skip the Post Accrual field and select PDF as your Report Output Option..
- Click Process. This will generate a preview report allowing you see what amounts will moved from which Unearned Account(s) to Revenue Account(s) for the Module(s) selected. VSI highly recommends generating a preview report prior to posting accrual.
- When you have reviewed the preview report, go back and enable the Post Accrual option.
THEN
Select your Output Option. - Click Process to run Accrual Posting.
See Also: Topic Doc - Accrual Processing and Examples
See Also: Topic Doc - Converting from Cash-based Accounting to Receivables or Receivables/Accrual-Based Accounting .
From the bottom of the screen…
Click Process to run Accrual Processing, either in the preview or actual mode. The process runs on the AppServer. The system will notify you when it completes.
Click Schedule to have this process run at regular intervals. You will continue to the Schedule Generator screen.
Click Close to exit this program. You will be returned to the main Menu or the previous program.
Accrual Processing
Include Activity (AccrualProcessing_AR)
Select this option to run Accrual Processing for the Activity Module
De-select this option to skip this module when running Accrual Processing.
See Also: Topic Doc - Accrual Processing and Examples
DeleteInclude Facility (AccrualProcessing_FR)
Select this option to run Accrual Processing for the Facility Module
De-select this option to skip this module when running Accrual Processing.
DeleteInclude Pass (AccrualProcessing_PM)
Select this option to run Accrual Processing for the Pass Module
De-select this option to skip this module when running Accrual Processing.
DeleteInclude Tickets (AccrualProcessing_PST)
Select this option to run Accrual Processing for the Point of Sale - Tickets Module
De-select this option to skip this module when running Accrual Processing.
DeleteInclude Rental (AccrualProcessing_RN)
Select this option to run Accrual Processing for the Rental Module
De-select this option to skip this module when running Accrual Processing.
Note: If opting to run Accrual for the Rental module then expand the Rental Options group and make additional selections as needed.
Include Locker (AccrualProcessing_LK)
Select this option to run Accrual Processing for the Locker Module
De-select this option to skip this module when running Accrual Processing.
DeleteInclude Trip (AccrualProcessing_TP)
Select this option to run Accrual Processing for the Trip Module
De-select this option to skip this module when running Accrual Processing.
DeleteInclude Court (AccrualProcessing_CR)
Select this option to run Accrual Processing for the Court Module
De-select this option to skip this module when running Accrual Processing.
DeleteInclude League (AccrualProcessing_LS)
Select this option to run Accrual Processing for the League Module
De-select this option to skip this module when running Accrual Processing.
DeleteInclude Trainer (AccrualProcessing_PT)
Select this option to run Accrual Processing for the Personal Trainer Module
De-select this option to skip this module when running Accrual Processing.
DeleteRental Classes To Include (Blank=All) (AccrualProcessing_RentalClasses)
This field is applicable only if you are opting to process Accrual for Rentals.
Click the Combo Box icon to select the specific Rental Class(es) if any that for which you want to process Accrual.
THEN
Select your Rental Accrual Option.
Leave this field blank to run Accrual for all Rental Classes.
DeleteRental Accrual Option (AccrualProcessing_RentalAccrualOption)
This field is applicable only if you are opting to process Accrual for Rentals.
Expand the Drop-down list and determine how you wish Accrual to be processed for items in this Module:
- Through Item Dates - When you process Accrual funds for items in the Rental Class(es) you selected will move from Unearned Income to Revenue in increments over the length of the item where a percentage is accrued each time Accrual is run. For Example: Your Rental runs from 15 May through 15 July. When you process Accrual funds for this Rental will move from Unearned Income to Revenue in an incremental process where <x>% is Accrued in May <x>% is Accrued in June and <x>% is Accrued in July. This is the standard default method for accruing items.
- Item Begin Date - When you process Accrual 100% of the funds for items in the Rental Class(es) selected will move from Unearned Income to Revenue the first time Accrual is run after the beginning of the Item. For Example: Your Rental runs from 15 May through 15 July. When you process Accrual for May 100% of the funds for this Rental will move from Unearned Income to Revenue because the Rental Start Date has passed. When you run Accrual in June and July no further funds for this Rental will be accrued (unless full payment for the Rental was not made in May).
The selection you make in this field will override your Rental Accrual Option as maintained in the Accrual Settings group of your Static Parameters profile .
DeleteBegin Accrual Date (AccrualProcessing_BeginDate)
Expand the Drop-down list and select your Begin Accrual Date option
THEN
Take appropriate action in the right-hand column to specify the actual date range you wish to select.
When running Accrual, it is always safe to pick a Beginning Date far in the past, as doing so ensures that any Accrual that may have been missed gets collected in this run. For Example: You might select a Beginning Date of 01/01/1900
Refer to RecTrac Date/Time Select Fields for a listing of selection definitions and examples.
DeletePost Accrual (AccrualProcessing_PostAccrual)
Select this option to Post Accrual upon clicking the Process button.
De-select this option to generate a Preview/Proof Report for the Report Output Option selected upon clicking Process.
When you Post Accrual, the system will move money from Unearned Income Accounts to Earned Revenue Accounts. VSI highly recommends generating a preview report prior to posting accrual to ensure accuracy.
DeleteEnd Accrual Date (AccrualProcessing_EndDate)
Expand the Drop-down list and select your End Accrual Date option
THEN
Take appropriate action in the right-hand column to specify the actual date range you wish to select.
This should be the end date of your most recent Accrual period and should not be a date in the future. For Example: If running accrual on a monthly basis, you would run accrual on the first day of the this" month for the period ending on the last day of "last" month such as running Accrual on 01 May for the period ending on 30 April.
Refer to RecTrac Date/Time Select Fields for a listing of selection definitions and examples.
Notes: The Ending Date you select is also the Posting Date so if you ran Accrual Processing on 03 May for the period 01/01/1900 - 04/30/20xx your Posting Date would be 30 April 20xx.
The ability to run Accrual Processing with an Ending Date in the future is controlled by Permissions. In the Standard VSI Design: Permissions profile • Buttons/Misc Permissions tab • Miscellaneous Settings group • Future Accrual Dates - Allow Override field
Report Output Option (AccrualProcessing_ReportOutputOption)
Expand the Drop-down list to select your Report Output Option. Upon clicking Process, the system will generate a Posting Report in the format you select here, .pdf or .csv file. (.csv file types will open in most spreadsheet programs, such as Microsoft Excel.)
DeletePosting Cash Drawer (AccrualProcessing_PaymentDrawer)
Accept the default entry for this field or overwrite as needed with another Cash Drawer value. In most instances, this should be the Drawer to which your User ID is linked.
DeleteReport Print Option (AccrualProcessing_ReportPrintOption)
Expand the Drop-down list to select your Print Option for the Posting Repor/Journal:
- Summary - The report will list subtotals by Item, such as all accrual posted for a the same Pass Type or Activity Section, etc…
- Detail - The report will list each transaction that is accrued.
Posting Date Option (AccrualProcessing_PostingDateOption)
Expand the Drop-down list to select the your Posting Date Option for this Accrual run. This is date on which Accrual will be posted in the system.
- End Date - The Date you entered in the End Accrual Date field. This is the default option.
- Begin Date - The Date you entered in the Begin Accrual Date field.
- Current Date - Today's" Date.
- Specific Date - Accrual will post on the Date you specify. Upon selecting this option a Specific Date field appears. Click the Calendar icon to select the date on which you wish to post Accrual.
Specific Date (AccrualProcessing_SpecificPostingDate)
This option is applicable only if your Posting Date Option is "Specific Date."
Click the Calendar icon to select the date on which you wish to post Accrual.
Delete