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Overview
This job aid will take you through the process of creating reclassification CR/RE transactions using future transactions triggering (FDT). Because this is used to change revenue from unearned to earned at a specific point in the future, only CR with Event Type AR11 and RE with Event Type AR10 allow this function.
Creating the a CR with a reclassification trigger:
Create a CR with Event Type AR11 using Processing a Stand Alone Cash Receipt job aid found on the General Accounting landing page.
In the General Information section of the Accounting tab, enter an appropriate Reclassification Date.
Validate and Submit.
The CR will be populated in the FDT table with a ready status after being finalized. The Reclassification Date entered above will be used as the Start Date when the triggering transaction occurs.
5. Once the trigger has occurred, the FDT screen will be updated from Ready to Successful and a hyperlink will take you to the created transaction.
6. Since this CR is reclassification from unearned revenue to earned revenue, it is a Version 2 of the original CR with the same ID.
Review the accounting lines. Accounting Line 1 is the original accounting line. It should maintain Event Type AR11 and the Line Amount should be updated to $0. Accounting Line 2 is the reclassification line. It should have Event Type AR02 and the Line Amount should be the original dollar amount of line 1 ($100 for this example)
Review the posting lines. Line 1's posting lines will Debit Collected Unearned Revenue and Credit Cash. Line 2's posting lines will Credit Collected Earned Revenue and Debit Cash.
Attach any needed documentation.
7. Validate and Submit.
Creating an RE with a reclassification trigger.
Create an RE with Event Type AR10 using the Creating a Receivable (RE) job aid found on the Accounts Receivable landing page.
In the Header enter the Reclassification date and check the Held box, then click the Validate button.
The Reclassification Date/Held fields entered in the Header will be carried into all Accounting Lines with Event Type AR10, because the reclassification FDT is limited to event types that include unearned revenue. Note: If the Reclassification date Reclassification held information are manually entered in the Accounting Lines, they will override those in the Header.
4. Validate and Submit.
5. The RE will be populated in the FDT table in ready status after being finalized. The Reclassification Date in the Accounting Line will be used as the Start Date when the transaction trigger occurs.
6. Once the date has occurred, the GDT screen will be updated from Ready to Successful and a hyperlink will take you to the created transaction.
7. Since the generated RE is a reclassification from unearned revenue to earned revenue, it is a Version 2 of the same Transaction ID as the original RE.
Review the accounting lines. Accounting Line 1 is the original accounting line. It should maintain Event Type AR10 and the line amount should be updated to $0. Accounting Line 2 is the reclassification line. This line moves the revenue from unearned to earned revenue. It should have Event Type AR01 and the Line Amount should be the original dollar amount of line 1 ($100 for this example)
Review the Posting Lines. Line 1's posting lines will Debit Billed Unearned Revenue and Credit Billed Unearned Receivables. Line 2's posting lines are Credit Billed Earned Revenue and Debit Billed Earned Receivables.
Attach any needed documentation to the RE.
8. Validate and Submit.
9. When the payment is received, copy forward from the RE transaction version 2 and use the related job aid if necessary.
NOTE : There is a special case that required additional steps. If you receive the money and create a CR before the reclassification date has occurred, please follow the steps below.
Optional: Go to the FDT page and delete the RE record.
Copy forward the RE to create a CR without a Reclassification Date. Clear the Reclassification Date field in the General Information section of the Accounting Tab, then validate the CR. Also make note of the Line Amount for subsequent steps.
After the CR is finalized, create a JVC transaction immediately using the related job aid if necessary. Best practice is to create the JVC immediately and hold approval until the revenue is earned.
In the JVC go to the General Information sub section in the under the Line Group tab and fill enter XR24 in the Event Type field.
Go to the Vendor Customer section under the Line Group tab and enter Vendor Customer and Address Code from CR.
Go to the Accounting tab and select the COA section. Enter all required fields for all lines.
While still in under the Accounting tab, fill in the General Information sub section for each line.
Validate, check the Posting Lines and Submit.
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