Practice CS: General ledger journal entry export definitions

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Practice CS includes a feature that enables you to export journal entries that record accounting activity and import them into the CS Professional Suite General Ledger module. This topic details the difference between the cash basis and accrual method, and defines the account descriptions used on the journal entry.

Resolution

For information regarding journal entry export setup and processing procedures, see this topic.

Definitions

The following table defines each of the account assignments used in the journal entry export in Practice CS.

Item Details Usual Type
Receipts Normally a debit. Use as your "cash" account. There is currently no accommodation for the journal entry to flow to multiple bank accounts, even if you have set up multiple banks in Practice CS. You must pick a single GL account for the journal entry and then make an adjusting entry in CSA to transfer funds between accounts Asset

Accounts

Receivable

A/R is normally a debit entry, but will change from debit to credit from month to month as the amounts flowing into this category net to reduce the accumulated A/R. Asset
Credit Memo Normally a debit entry as it is the offset for the reduction in A/R. Expense
Debit Memo Normally a credit entry as it is the offset for the addition to A/R. Revenue
Write Offs Normally a debit entry as it is the offset for the reduction in A/R. Expense
Service Charge Normally a credit entry. Revenue
Revenue Credit entry to your revenue/sales account. Revenue

Sales / Service

Tax

Credit entry to sales tax payable account. Liability
Progress Billings Entry to record progress billings Revenue

Unapplied

Receipts

Credit entry that acts like Revenue (above) to record a cash receipt that has not been applied yet, so that all money actually receipted in the system can be debited to cash account ("Receipts" above). Note that once the receipt is allocated, however, the results of the journal entry will change (it will move from the "general" revenue account here to the appropriate section of the journal entry).* Revenue

* Unapplied Receipts Example: Record an unallocated receipt of $100 and the journal entry originally records that $100 as a credit to the Unapplied Receipts section. Once the receipt is allocated to an invoice that contained a $10 service charge and $5 sales tax, the JE will now show that $85 is allocated to "revenue", $10 "service charge", and $5 "sales tax".

Accrual vs. Cash Basis

The following table defines how journal entries are created under each accounting basis, and what happens in Practice CS to cause amounts to flow to the account assignments listed. (In the following table, "CCR" is a credit card return transaction and "NSF" is a nonsufficient funds reversal transaction.)

Description Cash Accrual
Receipts total amount of all receipts (whether applied or not) -NSF -CCR total amount of all receipts (whether applied or not) -NSF -CCR

Accounts

Receivable

N/A posted billings + sales tax +service charges +DM -CM/WO -receipts +NSF +CCR
CM / DM the amount of receipts APPLIED to DM's, less any NSF and CCR amounts (only portion applied to DM's and assigned as "DM" originally is reversed by NSF/CCR). Note: CM not valid for cash basis. the amount of DM/CM's (whether applied or not)
Service Charge the amount of receipts APPLIED to SC's, less NSF/CCR portion. the amount of your service charges
Write Offs N/A the amount of your write offs (whether applied or not)
Revenue the amount of receipts APPLIED to invoices, less any NSF and CCR amounts (only portion applied to invoices and assigned as "revenue" originally is reversed by NSF/CCR). Note: Revenue does NOT include the amount of receipt applied to other items listed elsewhere under Cash Method. GL account detail is based on the method chosen. Example: if method is Activity, on any receipts for the period that are applied to invoices, the system looks up the Activity billed on the invoice and records the applied amount to this Activity's GL account number specified in Setup. the amout of your posted invoices (detailed based on method chosen). Example: if method is activity, the system looks up the Activity billed on any posted invoices for the period and records the amounts billed, broken down by that Activity's GL account number specified in Setup.

Sales / Service

Tax

the proportional** amount of receipts APPLIED to invoices with sales taxes, less NSF/CCR portion. the total amount of sales tax billed for the period specified
Progress Bills the amount of receipts APPLIED to invoices with progress billings whether those progress bills have been "relieved" or not, less NSF/CCR portion. The GL account detail is based on the method chosen. the amount of your UNRELIEVED progress billings for the period specified (detailed based on the method chosen).
Unapplied Receipts the total amount of your UNAPPLIED receipts. N/A (note that this line will not appear with the Accrual method)

**Proportional example: sales taxes work differently using the cash method. The system won't record sales tax until you receipt the invoice that contained the sales tax…the liability is not recorded immediately upon posting the invoice. So, if someone records a partial payment for an invoice that contained sales tax, Practice CS must record that same proportion of sales tax. Example: Invoice: $500. Sales Tax: $5. Receipt keyed for $101.00. Under cash method, the system will record $100 of Revenue and $1.00 of Sales Tax (because $101 is 20% of $505, the system applies the receipt to 20% of the sales tax).

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