Gen. Journal Template and Batch creation
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To establish that one or more G/L (General Ledger Entry) template feed into the simulated accounting, you need to enable the “Simulation” field.
For each template, as per standard practice, you must create the corresponding batches.
Chart Of Accounts
If “Direct Posting” is disabled, it is still possible to use the specific General Ledger account in simulated entries by enabling the “Allow Sim. Posting” option.
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Competence Dates Setup
In this setup, it is possible to define the posting period for simulated entries, specifically related to accruals and deferrals.
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| Field | Description |
|---|---|
| Allow simulated posting from / to | These dates allow you to define a period during which you cannot generate simulated entries, except for those related to accruals and deferrals. |
| Allow accruals/deferrals posting from / to | These dates allow defining a period within which it is possible to generate accrual/deferral entries generated through the indication of the template and the starting/ending dates of competence, regardless of what is indicated in the fields “Allow simulated posting from / to” |
Lock accounting period
The generation of entries related to accruals and deferrals within a given period, in addition to being controlled through the fields “Allow accruals/deferrals posting from” and “Allow accruals/deferrals posting to” in the Competence Date Setup (SGL), can also be inhibited by enabling the “Block accruals/deferrals posting” option on the Accounting Periods page.
Furthermore, if the start and end dates of competence for a document line or journal entry partially overlap a closed period and a subsequent open period, the portion of cost related to the closed period will be shifted to the first subsequent open period. This logic can be applied only if the reversal of the cost in simulated accounting does not also fall within the closed period.
Accruals and deferrals template
This allows to set a series of parameters that determine the logic for generating accrual entries:
| Field | Description |
|---|---|
| Accrued Revenue/Deferred Expense account - Accrued Expense/Deferred Revenue account | Accrual and deferral accounts to be used in journals |
| Days per month | Criterion for allocating the cost/revenue of competence: - 30 days = all months are considered 30 days (Commercial Year) - Actual days = the actual days of each individual month are considered |
| Type | Allows to select the environment for recording accrual entries. - G/L = the entries will be posted in the actual accounting (movement of the G/L Entry and printing in the Journal) - Sim. G/L = the entries will be posted in the simulation environment (Sim. Entries and No printing in the Journal) |
| Period Type | Allows to define the period of competence of the entries generated. Possible values: Monthly, Quarterly, Semi-annual, Annual. |
| Credit Memo - Use opposite accounts | If activated, the accrual entries generated by a Purchase CM (unlike those related to a Purchase Invoice), will use the accounts set as Active Accruals and/or Passive Deferrals; The accrual entries of a Sales CM (unlike those related to a Sales Invoice), will use the relative accounts set as Passive Accruals and/or Active Deferrals. |
| Accrual description Source | Allows to define how to handle the posting description in the accrual and deferral detection. |
| Allow G/L Entry grouping | In case it’s decided to enable the G/L posting, it allows to establish whether to group, as much as possible, the competence entries generated. |
Customer and vendor posting groups
For each supplier/customer registration category, it is necessary to set the accounts to be used in the procedure for posting entries related to invoices to be received/issued.
Credit Note Templates Use Cases
Case 1: Invoice and Credit Note Management with a Single Template
Setup:
Journal entries generated from the invoice:
Journal entries generated from the credit memo:
In this case, the credit memo offsets exactly the same accounts as the invoice. Therefore, by posting an incorrect invoice and subsequently an identical credit memo, the system zeroes out the account affected by the A/D template (in the example, the active accrual).
Case 2: Invoice and Credit Memo Management with Different Templates
A/D template setup:
Journal entries generated from the invoice:
Journal entries generated from the credit note:
In this case, the accounting entry is correct but does not exactly reverse the invoice. This method of recording credit memos is used when there is no direct link between the credit memo and the invoice (e.g., year-end bonuses).
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