1. Finance – Overview of Unearned Revenue, Grace Due and New Features

2. Unearned Revenue
What is the Unearned Revenue report?
A process run at Subscriber Fiscal Close to report each subscriber’s ending balance for the period
The ending balance is the “unearned revenue” remaining on the subscription as of the end of the fiscal period
‘Unearned Revenue’ is commonly referred to as ‘Subscriber Liability’
The unearned revenue amount is comprised of subscriber payments, adjustments and other transactions that update the Expire Date, that have processed but where the product has not yet been delivered

3. Unearned Revenue Subscriber payment received on 03/15/2015 for $100
Unearned Revenue example for a new subscriber:
Subscriber payment received on 03/15/2015 for $100
Payment processes when the Batch is accepted and Sub Payment Processing is run
Processing puts the amount of the payment into the subscriber’s “balance” and updates the GL:

4. Unearned Revenue Unearned Revenue example for a new subscriber:
Subscriber payment received on 03/15/2015 for $100
The payment amount will be converted into Copy Rate By Day (CRbD) amounts based on the subscribers Rate Code/Terms
In this example, we’ll say the term is 52 weeks for $100 and the Terms are setup as Percent By Day – 40% Sunday, 10% each Mon-Sat
Sunday = , Daily =
The CRbD amounts will be “earned” as each pub date is processed/ended
The subscriber’s Balance will be updated in Customer Services, but the earned amount will not hit the GL until the end of the period

5. Unearned Revenue Unearned Revenue example for a new subscriber:
Subscriber payment received on 03/15/2015 for $100
Sunday = , Daily =
When UR is run at the end of the period (03/31/2015) the report will show the following for this subscriber:
Prior Balance
Earned Sunday
Earned Other
Payments
Expire Changes
Transfer
Grace Paid
Refunds
Ending Balance
0.00
2.31
2.69
100.00
95.00
Sunday – X 3 =
Daily – X 14 =
Note – because the CRbD is stored to 6 decimal points, rounding will occur

6. Unearned Revenue When is Earned Revenue posted to the GL?
When Unearned Revenue is run with Update = Yes and Create GL = Yes
Prior Balance
Earned Sunday
Earned Other
Payments
Expire Changes
Transfer
Grace Paid
Refunds
Ending Balance
0.00
2.31
2.69
100.00
95.00

7. Unearned Revenue Where is the Earned Revenue GL defined?
Setup > Accounting > General Ledger > CR GL Account
May be defined by day of week

8. Unearned Revenue Where is the Earned Revenue GL defined?
Setup > Accounting > General Ledger > CR GL Account

9. Unearned Revenue
What is the calculation for Earned Revenue?

10. Unearned Revenue What is the calculation for Earned Revenue?
There is a caveat though…
The Earned Revenue calculation assumes:
There are no issues or errors with the subscriber
There are no unprocessed transactions
That no activity outside the period has influenced the subscriber balance
The Unearned Revenue report will correct any issues within itself, as it must set the Ending Balance to match the subscribers’ current status
The Unearned Revenue report cannot be out of balance with itself

11. Unearned Revenue Subscriber Payment Errors
Errors prevent the subscribers Expire from being updated, but the payment amount is still in their “balance”
This subscriber has a Copy Rate By Day of $1.00
AutoPay pulled on 02/05/2015 for $28.00, Current Expire – 02/06/2015
The payment is erring and will not process
The ending balance for January was 5.00
When run the Unearned Rev report at the end of February we see:
Prior Balance
Earned Sunday
Earned Other
Payments
Expire Changes
Transfer
Grace Paid
Refunds
Ending Balance
5.00
1.00
4.00
28.00
0.00
The Expire has not been updated so there are no days to ‘earn’ from the payment that was made

12. Unearned Revenue Subscriber Payment Errors
The subscriber should look like this on the report:
Prior Balance
Earned Sunday
Earned Other
Payments
Expire Changes
Transfer
Grace Paid
Refunds
Ending Balance
5.00
4.00
24.00
28.00
0.00
The ending balance must reflect was is happening on the subscriber
No days/amounts can be ‘earned’ if the payment is not processed, so the report looks like this:
Prior Balance
Earned Sunday
Earned Other
Payments
Expire Changes
Transfer
Grace Paid
Refunds
Ending Balance
5.00
1.00
4.00
28.00
0.00

13. Unearned Revenue What is the calculation for Earned Revenue? 5.00
28.00
0.00

14. Unearned Revenue
Subscriber Payment Outside the Date Range of the Report
A payment outside the period cannot be included on the report
A Payment dated 03/01/2015 will not be on a report run for 03/02/2015 – 03/08/2015; this seems obvious
But… the payment is part of the subscribers’ balance at the time the report is run
Scenario – Unearned Rev is run through 03/01, but Fiscal Close is not processed to close the period. On the evening of 03/01, a payment is made online and is dated 03/01, but will not process until 03/02
This payment is effectively “stuck” between the two reporting periods

15. Unearned Revenue
Subscriber Payment Outside the Date Range of the Report
When the Payment falls within the period, we see this:
Prior Balance
Earned Sunday
Earned Other
Payments
Expire Changes
Transfer
Grace Paid
Refunds
Ending Balance
5.00
1.00
6.00
28.00
0.00
26.00
When the Payment is not within the period, we see this:
Prior Balance
Earned Sunday
Earned Other
Payments
Expire Changes
Transfer
Grace Paid
Refunds
Ending Balance
5.00
1.00
-22.00
0.00
26.00

16. Unearned Revenue Calculation when Payment is within the Period 28.00
5.00
28.00
0.00
26.00
7.00

17. Unearned Revenue Calculation when Payment is outside the Period 5.00
0.00
26.00
21.00-

18. Unearned Revenue How does the ‘Payment Outside the Period’ happen?
Failure to run Subscriber Fiscal Close
Payment Date issues within Lockbox files
Non-issue if Fiscal Close has been run
Allowing Payments to be back-dated

19. Grace Due What is the Grace Due report?
A process run at Subscriber Fiscal Close to report the value of days delivered after the subscriber’s Expire date
There are two flavors of Grace:
Subscriber’s currently In Grace
Subscriber’s who have completed their Grace period
The Grace Due report has two parts
Top portion reports subscriber’s that have completed their Grace period
Bottom portion reports subscriber’s currently In Grace

20. Grace Due Grace Due and the GL
Subscriber AR is defined within the Publication record
Subscriber Revenue is the same GL used by Unearned Rev

21. Grace Due Grace Due and the GL
There are two GL Journal Codes for Grace
GraceDue – for subscriber’s that have Ended Grace (top of report)
GraceAcc – for subscriber’s currently In Grace (bottom of report)
Both Grace Journal Codes use the same GL Accounts
GraceDue – hits the GL when the GraceOwed transaction is created on the subscriber (when EndGrace processes)
GraceAcc – hits the GL when the Grace Due report is processed with Update = Yes

22. Grace Due Grace Due Example
Subscriber Expired on 12/15/2014 (CRbD = 1.00)
Site allows 90 days of Grace, so End Grace date is 03/15/2015
End of December:
In Grace amount reports the days in Dec to GraceAcc Journal Code
12/15 – 12/31 = 17 days, so hits GraceAcc
17.00 is reversed on 01/01/2015, setting the “balance” back to 0.00
End of January:
In Grace amount reports the days in Jan to GraceAcc Journal Code
12/15 – 01/31 = 48 days, so hits GraceAcc
The net in the GL is 31.00; new accrual minus reversal from Dec
48.00 is reversed on 02/01/2015, setting the “balance” back to 0.00
Cont…

23. Grace Due Grace Due Example End of January:
12/15 – 01/31 = 48 days, so hits GraceAcc
48.00 is reversed on 02/01/2015, setting the “balance” back to 0.00
End of February:
12/15 – 02/28 = 76 days, so hits GraceAcc
76.00 is reversed on 03/01/2015, setting the “balance” back to 0.00
End of March:
Subscriber has Ended Grace – the full Grace period hits the Grace Due Journal Code
12/15 – 03/15 = 90 days, so hits GraceDue
At this point, the subscriber is Perm Stopped

24. Grace Due What happens when a Payment comes in?
If the subscriber is currently In Grace
No Grace related activity on the subscriber or in the GL
The GraceAcc was reversed the first day of the next period, so the subscribers Grace “balance” is 0.00
Effective Date of Payment will be the subscriber’s current Expire Date (12/15/2014)
If the subscriber has Ended Grace
GraceOwed will be Paid

25. Grace Due What happens when a Payment comes in?
If the Payment amount is more than the GraceOwed amount

26. Grace Due What impact does Grace Write-Off have?
There are two flavors of Grace Write-Off
Write-Off to both Customer Services & GL
Grace amounts are moved from Sub AR to Bad Debt
GraceOwed transactions are changed to GraceWOff and the Grace balance is set to 0.00 for the subscriber

27. Grace Due What impact does Grace Write-Off have?
There are two flavors of Grace Write-Off
Write-Off to both Customer Services & GL
Grace amounts are moved from Sub AR to Bad Debt
GraceOwed transactions are changed to GraceWOff and the Grace balance is set to 0.00 for the subscriber
Write-Off only to GL
Grace amounts are moved from Sub AR to Bad Debt
Grace amounts are retained in Customer Services
The GraceOwed transaction remains, but the GL Write Off Date has been populated

28. Grace Due
What happens when a Payment is received when Grace has been written off to only the GL?
Bad Debt Paid
Transparent on the subscriber - GraceOwed is set to GracePaid

29. Grace Due What is Re-Instated Grace Owed?
If a Payment pays off Grace and is then cancelled/NSF’d the Grace Owed amount must be put back on the subscriber and in the Sub AR.
This Grace Owed amount cannot be considered “new”

30. Grace Due How does the Grace Due Report work?
Unlike Unearned Rev, Grace Due foots as expected

31. Grace Due How does the Grace Due Report work?
Unlike Unearned Rev, Grace Due foots as expected
It is possible for a subscriber to be out of balance on the Grace Due report
Out of balance subscribers will be indicated with an asterisk on the far right of the report

32. Grace Due How does the Grace Due Report work?
Out of balance subscribers will also be listed in the middle of the report, at the end of the Top portion

33. Grace Due What issues can Grace Due have?
Possible issues are similar to Unearned Revenue
Unprocessed and/or erring Payments
Processed Payments outside the period
Gaps in the date range of the report
Start Date must always be prior End Date + 1
Make sure the Biz Rule for gap checking is enabled
Reports section – Should an error or warning be generated if a gap in dates I found between the last period and current period?

34. What’s New?

35. What’s New? Exports GL Export can omit “Zero” GL transactions
BUSINESS RULE: Should general ledger transactions with a zero amount be exported?
Statement Export now supports up to 12 age periods

36. What’s New?
Imports
A rollup GL Account ID may now be imported within the Chart of Accounts Import

37. What’s New? CRGL by Account Type
CRGL can now be defined by Account Type
Account Types are used for Non-Delivery Account setup
Ex: Hauler, Contractor, etc.

38. ?

39. Thank You!