LUFI-30406 Recurring Entries

Finance User Manual ENG -> 3. Payments -> 3.4 Specific Payments and Journal Entries -> LUFI-30406 Recurring Entries

LUFI-30406 Recurring Entries

LU Introduction

In order to recognise the same expense every month during several months, a periodical processing function called Recurring Entries can be used in UniField. These are entries entered in to a recurring entries Model which enables to equally spread the expenses over each period. For example, we pay the rent for the 1^st quarter of the year on January, all the money is paid on January but the expenses are actually for January, February and March.

Recurring entries follow this standard:

Create the supplier invoice

First, the user records the booking using a pre-paid expense account (in the supplier invoice line) – so the transaction debits Prepaid account and credits A/P Accounts Payable.

Pay the supplier invoice

The user records the supplier invoice payment importing the invoice into a register – so the movement is debit A/P (accounts payable) and credit on the liquidity account.

Create the accounting Model (= Recurring Model)

The user sets up a recurring Model, defining the journal entries to be repeated. The movement is debit expenses and credit prepaid expenses.

The user needs to perform an analytic distribution for the expense account leg of the Model.

Create the periodic Model (= Recurring Plan)

The user defines the periodicity at which the postings should occur (e.g. weekly, monthly) and the number of periods during which this entry will be repeated.

Generate the entries in the journal (= Generate Entries)

The user generates accounting entries based on the recurring Model and the recurring Plan – Prepaid to Expense. The creation of these entries is not automatic. The user must use the recurring Model to generate these entries at the end of each period. These entries are created and become {un-posted}; the user must review them and post them in the journal. If these entries are not generated and posted, UniField will not allow you to close the period.

Reconcile the prepayment entries (pre-paid account) in the journal

Manually reconcile the Supplier Invoice with the recurring entry. The prepayment account will be partially reconciled until all entries in the Model are generated.

Accounts move for a 3 months rental paid (EUR 3,000) starting from August (EUR 1,000)

Description	Account	De	Cr	Entries matching
Supplier Invoice Booking
Trade Payables	30020		3,000	A1
Pre-paid expenses rental	13300/13620 (OCA)	3,000		A2
		(2,000)
Supplier Invoice payment (August)
Cash account	10100		3,000
Trade Payables	30020/15600 (OCA)	3,000		A1

Recurring entry generated (August)
Pre-paid expenses rental	13300/ 13620 (OCA)		1,000	A2
Expat housing: rent & running costs	61110	1,000	(2,000)

How to Book a Recurring Entry Expense:

Assume we are in a situation where we paid 800 USD for upfront office rent. We would like to record it as 4 expenses which take place every month.

Create the supplier invoice

Go to: Supplier/Supplier Invoice

Create manually a supplier invoice using a pre-paid expense account {15600 – Prepaid expenses rentals} for some OCs or for OCA in the example 13620 for an amount of 800 USD.

Invoice line booking on a prepaid account

Validate the supplier invoice. The invoice becomes {Open}

Draft supplier invoice and {Validate} button

Pay the supplier invoice:

Go to a register to proceed with the supplier invoice payment.
When the register is open, import the supplier invoice and hard-post the register entry.

Imported invoice and entry hard posted

Create the accounting Model (= recurring Model)

Go to: Periodical Processing/Recurring Entries/Recurring Models

Click on {New} to create a Model.
Enter a {Model Name} and Journal {Purchase}.
- Tip! If you include text “%(year)s”, “%(month)s” or “%(date)s” in to the Model name, the entries will pick the year, month or date in to the entry reference when they are posted!
Select the Model currency. For this example, it is {USD}.
Enter two (2) Journal Entry Model Lines (Prepaid on Credit and Expense on Debit).
- For example, we want to pay 800 USD in 4 payments. Therefore, we debit 200 USD on the expense account and credit 200 USD on the 13310 account or 13620 account for OCA. Do not forget to select the appropriate third party in order to reconcile entries.
Record an analytical distribution on the expense account.
Click on {Save} button. The recurring Model is created as shown below.
If the Model lines are unbalanced, they will appear in blue! If they are balanced, they will appear in black.

Recurring Model created balanced (lines in black)

Recurring Model created unbalanced (lines in blue)

Recurring Model states:

The recurring Models has three different states:

Draft State = when no Recurring lines have been computed

When the Model is created and it has not been added in any Plan, it can be edited and deleted.

When the Model is created and added in a draft Plan without [computed] lines, it can be edited but can not be deleted. The warning message will be:

This allows to make easy clean for Models which have been created per mistake/forgotten one which has never been used.

The Draft Models are in blue color. Same color for the Draft recurring Plans.

Running state = when subscription lines have been computed in a recurring Plan (entries un-posted OR posted).

If the Model is used in one recurring Plan in running state (so dates computed), and the entries have been generated or not and there is no recurring Plan in state done related to the Model, the Model can still be edited but not deleted.

Done state = once all subscription lines have been generated and posted.

A recurring Model in done state is not anymore selectable when creating a new or editing existing recurring Plan.

You cannot duplicate a Recurring Plan using a Done Model. You will have a warning message.

For a Model used for 2 different Plans where one Plan is in done state and the second one is in running state: The Model will be in state done. The second Plan, in running state, will have the field Model in read only.

The Done Models are in grey color as for the Done Recurring Plans.

Recurring Model states workflow

Create the Recurring Plan (= recurring entries via recurring Plan):

Go to: Periodical Processing/Recurring Entries / Recurring Plans

Click on {New} to create new recurring lines.
Enter a {Name} and select the {Recurring Model}.
Select the starting date of the Model (= date of the first expense booking).
As we want to spread the cost over four (4) months and book the expense every month, choose Repeat {1} Number of Periods {4} and Period Type {month}. The final expense booking will take place in 4 months from your start date.
Fill in a reference if desired.
Click on {Compute} to display automatically the subscription lines.
Click {Save} button.

Recurring entries Plan expenses will be booked according to the subscription lines schedule.

Recurring Plan states:

The recurring Plan has three different states : Draft, Running and Done.

Draft state = when no Subscription lines have been computed. The button Compute is available
Running state = when Subscription lines have been computed (entries un-posted OR posted).

Buttons available are Delete Unposted Entries and Compute

In Running State, we can still change the fields: Name, Start Date, Number of periods, Repeat and Period type.

Example: we can decide to change the number of months at this stage: from 4 months to 6 months.

We tick Compute and two new subscription lines will be created and a recalculation will be done consequently.

Done state = once all lines have been generated and posted. No buttons are available. All fields are set as not editable.

When a Recurring Plan is set to done using one Model, the related Model is set as done and is not editable anymore nor erasable.

States of the Recurring Plan:

Generate the entries in the journal

Go to: Periodical Processing/Recurring Entries/Generate Entries

Choose the date to select entries to be generated before a specific date.
- For example, if you want to generate September entries, you can set the date in September.
- Entries to be generated in December should be created in the standard December period and not in the special periods 13 to 16 (this possibility has been blocked).
Click on {Generate Entries}.

⮡ A new window {Generate Entries} will appear.

Post entries in the journal

The entries are generated as unposted. To post your entries, you must first select {Post Journal Entries} in the Action menu:

When clicking on {Generate Entries}, you have the list of all entries to post according to the period chosen. Not just for the Model that you are in. You can choose those entries you want to post. Select the line with X and go to the right Action menu and click to Post Journal Entries.

⮡ The Recurring Entries to Post window appears

Generated unposted journal entry

Remember that the entries are still unposted and as long as they are still unposted, you still can delete the unposted entries from the Recurring Plan. To know if it’s posted or not, you can click directly on the entry generated in the subscription lines in the recurring Plan window.

The unposted subscription Line in the Recurring Plan

Post Recurring Entries:

Go to: Periodical Processing/Recurring Entries/Recurring Plan

If the entries are not immediately posted after being created, the user can return to the {Recurring Plan} menu, open the {Actions} menu and select the {Recurring Entries to Post}.

Recurring Entries to Post button

Select the entries you want to post, then click on {Post Journal entries} on the action menu.

⮡ A new search window {Generate Entries} will appear where can select the entries you want to post and post them by clicking on {Recurring Entries to Post} from the action menu.

Click on {Approve}.

The recurring Entries are posted now.

You won’t be able to click and to use the {Delete unposted Entries button} in the concerned recurring Plan if the recurring entries were posted.

Reconcile the prepayment entries in the journal:

Go to: Journal Entries/ Journal Items:

Tick the original invoice line and the posted recurring entry line to reconcile.
Click on {Reconcile Entries} in the right-hand menu.

Posted and unreconciled journal items and Reconcile entries action

⮡ The {Reconcile Entries} window appears proposing a partial reconciliation as the journal items selected do not allow for a full reconciliation.

Reconcile Entries window

Click on {Partial Reconcile} button.
In the Search Journal Items view, the account 13300 is partially reconciled with an outstanding balance of 600 USD.

Account 13300 partially reconciled

Reset AD at line level button to input a valid AD

Editing the AD on a recurring Model when it became invalid.

How to Delete a Recurring Model and a Recurring Plan:

ENTRIES IN DRAFT (NOT GENERATED YET)

How to delete a Recurring Model:

Go to Periodical processing/Recurring entries /Recurring Models
Delete the recurring Model by clicking on the red cross.
You can not delete a Model which is used already in a Plan. You will have an error message:

How to delete a Recurring Plan:

Go to Periodical processing/recurring entries/Recurring Plan
Delete the recurring Plan by clicking on the red cross.

Recurring Entries module for management of Fixed Assets

A new Analytic journal DEP has been created in order to use the recurring entries module for the management of the fixed assets.

This is optional per OCs. OCA will not use that for the moment.

Go to Accounting > Configuration > Analytic Accounting > Analytic Journals
The Journal code is named DEP, the Journal Name is Depreciation, and the type is also named Depreciation:

This is optional per OCs. OCA will not use that for the moment.

Go to Accounting > Configuration > Analytic Accounting > Analytic Journals
The Journal code is named DEP, the Journal Name is Depreciation, and the type is also named Depreciation:

The process to create a depreciation entry follows these steps:

Go to Accounting >Configuration > Financial Accounting > Accounts> Accounts, activate the GL codes for the accumulated depreciation (example code 21200 for the Non-Medical Equipment).
Go to Accounting > Periodic processing > Recurring entries > Recurring models.
Click on the button “New” to create a “Recurring Model”
Go to Recurring Plan and create a “New” Recurring Plan by selecting the Recurring model previously created in the Recurring Model screen.
Go to “Generate entries” and click on “Generating entries”: it will create entries with the “Journal code” DEP.

◀LUFI-30405 Down Payments

LUFI-30407 Debit Note▶