1.  Accounting Improvements What’s New with CiviCRM and Accounting Integration Joe Murray, President Presented at CiviCon Colorado, June 2016

2. Overview  Review  Taxes  Deferred revenue  Paying for pledges  CiviExpense aka CiviGrant Program Extension?

3. Features  Simple options by default, with powerful price sets when needed  Set financial type by contribution page, price set field, price set option  Separate accounting by line item  Pay later recorded as accounts receivable  Changes create additional bookkeeping transactions for full history

4. Chart of Accounts  Setup Financial Accounts to match chart of accounts in your accounting system  Most commonly used Financial Accounts are for a type of Income, bank or payment processor accounts that carry a balance, accounts receivable, bank fees  Some organizations setup different A/R accounts by income type, or contra-revenue accounts  Grants and expenses use an accounts payable as well as numerous expense accounts

5. What is a Financial Type?  Designed to hide accounting complexity in setup screens  Simplifies everyday use  Accounting Relationships  Asset, Accounts Receivable, Income  Discounts, Cost of Sales, Premiums Inventory  Credit/Contra Revenue, Credit Liability, Chargeback  Expense, Sales Tax

6. Financial Batches  Auditors and Data Entry folks like batches  Workflow designed to catch errors early  Provide permanent record of transactions  Can export summary or details to accounting system  Match data flows of external systems  Batch by Payment Instrument, Date, staff, etc.

7. Sales Taxes  CompuCorp client funded core support for 1 sales tax per line item (European VAT)  Supports separate accounting for taxes, calculated by financial type (ie by product)  Extension needed to support VAT for sales across EU  Extensions are currently needed to handle calculating tax by location (eg for different states)  Client specific HST, PST, GST exists for Canada  Feasible to add state, county and city taxes for US  Generally tax location (aka place of supply) is event venue or purchaser location

8. Partial Payments  API and below support partial payments for events, donations, memberships  Events backend registration supports partial payments and subsequent payments  Partially Paid Status is exposed via Contribution Edit, but is not properly supported (you need amount paid to be total amount to validate on save)  Need to fix / implement for Contributions and Memberships, front end Events

9. Deferred Revenue  Facilitates financial management by matching revenues to period when related expenses are booked  Membership revenue split by month, held in deferred revenue account until recognized  Events revenue recognized on first day of event  Might want multiple months for courses  Revenue recognition date option for general contributions  Expected in July 2016 (JMA subcontract to core team)

10. Automated Refunds  Currently cancelling a contribution, membership or registration purpose, or reducing its amount beyond what has been paid, requires accounting system to handle refund (manually)  July 2016 expect to see refunds processed automatically for transactions done using Authorize.net (JMA subcontract to core team)

11. Trial Balance Report  Provides tallies by financial account for a period, very useful for organizations that post monthly totals to accounting package rather than all trxns  Opening balances for asset and liability accounts now supported but by default turned off  Closing of financial period now supported  A few other reports  Expected July 2016 (JMA subcontract to core team)

12. Recurring Payments for Pledges  As a work-around for poor support for partial payments, some organizations have used pledges to track obligations, but not ideal  Pledges don’t create accounting entries  Currently backend supports paying pledges with recurring payments  Front-end creation of recurring payments and pledges coming July 2016 (JMA subcontract to core team)

13. Campaign Expenses/Management  GSoC 2015 Project Mentored by Björn Endres  Records expenses by campaign  Allows return on investment (ROI) to be calculated per campaign, though main focus is on graphical display of campaign information  Alpha version in production in two sites in February 2016  Beta version released in March 2016  https://github.com/systopia/de.systopia.campaign

14. CiviExpenses Extension?  There is a large Grant Programs extension that supports:  Applying for grant with supporting documents  Multi-stage workflow for review and approval  Hooks and two algorithms to determine how much of claimed amount approved applications receive  Check cutting, stop payment, re-issuance, etc.  Integration with financial batch exports  Renaming some fields would make this into expense payment system: Interest?

15. Order API  Basically exposes a contribution and its line items, and manages creation and updates of subsidiary objects like memberships, participants, and/or donations  Original spring 2015 spec: https://wiki.civicrm.org/confluence/display/CRM/O rder+API#OrderAPI-Create https://wiki.civicrm.org/confluence/display/CRM/O rder+API#OrderAPI-Create  Test code illustrating use: https://github.com/civicrm/civicrm- core/blob/master/tests/phpunit/api/v3/OrderTest. php#L247 https://github.com/civicrm/civicrm- core/blob/master/tests/phpunit/api/v3/OrderTest. php#L247

16. Payment API  Wraps the accounting functionality and business object workflow associated with CiviCRM receiving a payment  Original Spring 2015 spec: https://wiki.civicrm.org/confluence/display/CRM/P ayment+API#PaymentAPI-Create https://wiki.civicrm.org/confluence/display/CRM/P ayment+API#PaymentAPI-Create  Test code illustrating use: https://github.com/civicrm/civicrm- core/blob/master/tests/phpunit/api/v3/PaymentTe st.php#L118 https://github.com/civicrm/civicrm- core/blob/master/tests/phpunit/api/v3/PaymentTe st.php#L118

17. Product Management Approach?  Thanks to clients of Emphanos, Greenleaf Advancement, JMA Consulting for funding of enhancements  Is there a good way to improve financial accounting