April 4-5, 2018 The Four Seasons Baltimore How to Avoid Pitfalls in Accounting Presenter: Mary Ann Roberts April 4-5, 2018 The Four Seasons Baltimore

Chart of Accounts Restructuring This Section discusses Steps and Tips for Planning your Chart of Accounts Restructuring Accounting System UX Online Chart of Accounts Restructuring

Chart of Accounts Restructuring This process is a partnership between you and us Tables impacted by this change: Chart of Accounts Products General Ledger Detail Chart of Accounts Restructuring

Chart of accounts

Example Spreadsheet for Chart of accounts

Example Spreadsheet for PRODUCTS

Example Spreadsheet for General Ledger Details

Chart of Account Change TIPS Discuss changes to Account TYPES during this restructuring because it impacts the General Ledger Detail update. Account Types consist of the following: General Deferred – Membership & Subscriptions Deferred – by Event Deferred – by Date Payment Related AR - Standard A/P Unapplied The Deferred Account Types are associated with the Deferral Flag in the GL Detail. We need to discuss any changes like this to determine the impact of these changes. Chart of Account Change TIPS

Deferred Membership and subs Balance Sheet Account associated with Membership and Subscriptions Recognized into Revenue with Batch Type = Revenue Recognition Membership and Subscriptions Uses “months” to calculate revenue value of Deferral Start and Deferral End Dates in Invoice Detail (Products) Recognition Dates are Deferral Start and Stop Dates based on Benefit Entry in Invoice Detail and Renewal Billing Record. Deferred Membership and subs

The Primary GL Account in an existing dues product needs to be changed from a Deferred – Membership & Subscription type to an account with the type of General. Goal is to no longer defer revenue but to recognize it immediately. Requires Careful Planning Dues transactions will have incorrect deferral flags set (covered later) which will result in incorrect/incomplete revenue recognition and incorrect reporting. Cancellation of existing memberships will not offset to the correct GL account in General Ledger Detail table. Issues can arise when running renewal invoices for the next year. Dues Account CHanges Deferred Revenue

The Primary GL Account in an existing dues product needs to be changed from a General (Revenue ) type to a GL account with the type of Deferred – Membership & Subscription. The goal is to now begin deferring revenue instead of recognizing it immediately. Requires Careful Planning Create new Dues Billing Products with the new information instead of changing existing Products. Create new rates with the new information instead of using existing rates and associate the new product to the new rate. Change the Next Rate in the existing Rate to the new one created above. . Change the Next Rate value on all current renewal billing records in each Member to reflect the new rate. Dues Account CHanges Revenue Deferred

There are 3 types of GL accounts that can be used in Event Setup: Deferred – by Event Deferred – by Date General The Primary GL Account in an existing meeting product needs to be changed from a General (Revenue ) type to a GL account with the type of Deferred – by Event or - by Date. Event Account CHanges Revenue Deferred

Balance Sheet Account associated with Meetings and Exhibits Recognized into Revenue with Batch Type = Revenue Recognition by Event Uses Total Amount to calculate revenue value with no Dates Invoice Detail (Products) Recognition Date is the Batch Date Deferred By Event

Balance Sheet Account associated with Meetings, Exhibits and Course Registrations Recognized into Revenue with Batch Type = Revenue Recognition by Date Uses “days” to calculate revenue value of Meeting Start and Meeting End Dates in Event Meeting Setup (Refer to UX User’s Guide for exact calculation) Recognition Dates are days in Meeting Start and End Dates or Exhibit Start and End Dates Deferred by Date

Event Account CHanges The Primary GL Account in an existing meeting product needs to be changed from a Deferred – Event or a Deferred – by Date type to a GL account with the type of General (Revenue) . Goal is to now begin recognizing revenue immediately instead of deferring it. Deferred Revenue

Summary Verifying setup of dues and event products is much easier to correct before any transactions are created using those products. Best practice is to put in place a method of verifying new setup as it occurs. This can be done in several ways: Create a manual process that requires the sign off of the Accounting department when a new product is being created Manual form requesting the correct GL account numbers to use in setup of new product Events team sets up the meeting with the GL account numbers and receives approval before setting up any registrations or sessions Create a workflow that notifies Finance Staff when a new meeting or dues product thereby creating an opportunity to check the setup before Invoices are created.

Where are the Deferral Start/end dates "Most Likely to Succeed"

Go to an Invoice "Most Likely to Succeed"

Access the Invoice detail "Most Likely to Succeed"

Click on highlighted area below "Most Likely to Succeed"

Choose Invoice details "Most Likely to Succeed"

Open this line item and make changes to dates as needed "Most Likely to Succeed"

Items Covered during this session - Restructure Process for Chart of Account - Changing Primary gl Accounts on products - understanding how ux revenue recognition works - Tip to change deferral start and end dates on membership and subscription invoice detail "Most Likely to Succeed"

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