Sage 100 SO Deferred Revenue Posting

Sage 100 SO Deferred Revenue Posting (SODR) allows future Revenue and Deferred Postings to the General Ledger to occur during the S/O Invoice Update.  S/O Invoice Data Entry has been enhanced to have two new fields: Number of Months and Start Date.  When these fields are entered by the user, future postings will occur on the same day each month, for the number of months specified, for each Regular Line Item on the invoice.

The accounts that are posted to are as follows:
Debit to the Revenue Account for that Item’s Product Line
Credit to the Adjustment Account for that Item’s Product Line

The amount posted for the “future” Debit and Credit are the Line Extension divided by the Number of Months.

This enhancement is beneficial to companies that sell Support Contracts or Maintenance Plans.  The objective is to credit the overall Contract/Plan amount to Deferred Revenue for the Posting Date, and then credit Revenue and debit Deferred Revenue in future months.

This product works best when there is a dedicated Product Line for Support Contracts or Maintenance Plans, so that the Revenue Account is always set to Deferred Revenue, and the Adjustment Account is set to Revenue.

A new History file has been created that is posted to when each “future” G/L Posting is posted.  This file contains one record for Year/Month/ItemCode/InvoiceNumber/Sequence.  This allows a Crystal Report to be created to report deferred revenue forecasting.