Financial Settings


 

General Ledger Accounting Guide

Overview

The purpose of this document is to help CivicRec users properly configure their accounts for reliable GL Accounting and Reporting. This document also covers the steps to take to identify and correct any GL issues that might arise.

We hope that this guide will be helpful. We know it can be frustrating to get things configured and working the way you want with the GL Accounting. Part of that is because the concept itself can be technical and confusing in nature.

We are committed, at CivicRec, to make this as easy as possible. We are going to provide more documentation and demos to try to assist our customers in creating the cleanest and most reliable financial reports possible. We also know that there are tools we can develop to make your process a little less painful. We are working on those and look forward to getting those in your hands as soon as possible.

Important Note

  • We highly recommend that you bring a financial resource or bookkeeper from your organization into the process. Mis-configuring your GL can have serious repercussions in your reporting.

Instructions

Configure GL Settings

  • Configure your GL settings
    ConfigureGL.png
    • See our article Organization Options - GL Configuration
    • Suggested optional settings: 
      • Deferred Revenue 
      • GL Required for Sessions
      • GL Required for Facilities
      • GL Required for POS Items
      • Partial Activity Revenue Deferral: Allows organizations that do cash accounting and deferred revenue to use both 

Create Account

  1. Create your account with the Chart of Accounts function
    CreateGLAccount.png
    • Note: You will likely need one of each account.
    • Payment Account: 
      • If finance provides a code for that account, use it. If not, simply stub the code with “100” for now. It can always be changed later.
      • For the description, label it “Payment Account” 
      • Make sure the Type is indicated to be “Asset”
    • Liability Account
      • Create three Liability accounts now. As was the case above, the exact Codes you use are not important. If your finance department has codes for these, use them. If not, simply stub them with some numeric code.:
        • “Credit on Account”
        • "Refund Check Request” (if you use them)
        • “Deferred Revenue” (if you defer revenue)
    • Revenue Account
      • Your codes will likely cover things like “Youth Sports”, “Therapeutic”, “Facility Rentals”, “Admin Fees”, etc. Create those now.

Assign Payment Types

  1. Assign payment types
    AssignPT.png
    • CashCheck, and Credit/Debit payment types are commonly mapped to the same account but are not required. However, your Account Credit and Refund Check Request payment types must be assigned to individual liability codes. 

Assign Revenue Code

  1. Assign GL codes to Activities, Facilities, and POS Items
    AssignGLCodes.png
    • Note: This is the most critical step. Anytime a new activity, facility for rent, or POS Item is added to the system, staff needs to ensure they assign a GL code to that item.  
    • Note: It is most common to select one code and assign it a percentage of 100. This is what we highly recommend. However, we do support the ability to assign more than one code, and we also support the ability to assign codes by exact dollar amount. We do NOT recommend this. Using percentages makes it easier for the system to properly account for money even if your staff has to alter fees at checkout for some reason.

Assign Add-Ons and Discounts

  1. Assign add-ons and discounts, if applicable
    AssignAddOnsDiscounts.png
    • Note: A lack of necessary assignments is the most common cause of Unitemized transactions.

After all these processes, you should have all the pieces in place now for clean financial accounting.

Resources

See our article General Ledger Reporting and Validation for more information. 




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    Angela Tao

    If you go into organization options now, you will see a "partial activity revenue deferral" option as well. Details/explanation of that this option does would be helpful.