Recurring Journal Entries

We are looking to move the Recurring Journal entry process from the GL over to the AP system. Specifically, can we add an invoice into the AP system and have it pay the invoice in full, but spread the invoice over X number of periods. Is anyone doing this? If yes, can you help me understand how to set this up. Also would you be willing to share your standard work?

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Infor Lawson Financials Group - Discussion

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unknown

We haven't gotten any responses on this so I'm posting one more time.

Is there anyone out there who is entering an invoice in the AP system and have it pay the invoice in full but spread the invoice out over X # of periods? If yes, can you help me understand how to set this up. Also would you be willing to share your standard work?

unknown

AP should either post to a pre-paid account or the expense should be reclassified to a pre-paid. You would then set up a recurring entry to lower the balance monthly. We do these types of transactions for software contracts. Example:

Prepaid: $120,000 paid by AP in January to be expensed in 2017 for a contract beginning in February 2017).

Recurring entry starting in February for $10,000 per month (for 12 months): Credit prepaid account and debit an appropriate expense account.

If you are processing multiple pre-payments on the same entry over different periods, the accountant will need to manually track when each line starts and stops. If you have a single recurring entry for one pre-payment, I would recommend putting a start and stop date on the entry for the period that this entry is valid (after you click New Entry in GL70 you can enter the valid periods and the beginning and ending periods and years). I would also recommend entering comments to reference the original invoice and amount and the reason that this is a pre-payment and the length of the agreement.

unknown

We do a lot of recurring journal entry setup on the GL side for our prepays. It's pretty easy setup in GL70, then run GL170 each month. I can't remember for sure if AP can set up the recurrence on the AP entry...seems like maybe you can, and that is what you are talking about, but for some reason we just pay the invoice then set up the prepay in GL70 and handle it that way. We use some smart numbering in the header number of the RJE to indicate the end date (maybe the start date too?) and try to lump everything together that has the same end date. Again, I can't remember if the AP system has it's own interface or recurring entry, but we use GL70/GL170 and it works well for us.

amacknig

another option is to use the AP20 invoice entry screen. Pay the invoice to a prepaid balance sheet account. Click the asterisk button, on the next screen select the Recurring Journal button. This will bring up a screen that will create a recurring journal entry to spread the expense to whatever periods you select. we enter the vendor name and invoice number in the description field. you enter the to expense account here, give it a journal number, select the year/periods. Some of the advantages to using this method are: Lawson takes care of any rounding differences automatically, you can run a report (GL238) to keep track of how much has been expensed and how much is left in the prepaid account (i use this report to reconcile my prepaid accounts) you can look at the journal in GL70, and the best part is in GL90, on line inquriy you can drill into the origianl AP invoice entry from the GL exense account which you cannot do with a standard GL70 journal.

questions, call me (509-467-3627) or email: ggudgel@urmstores.com

Gail Gudgel

URM Stores, Inc.

unknown

Thank you all for your responses. I believe we have what we need - for now anyway. Your comments were very helpful!

unknown

Hello! I pulled up a document from when we looked at this (creating the recurring entry directly from the AP invoice) several (many?) years ago. At that time, we made this note in the documentation: Note that this can not be set up after the invoice is matched or the invoice batch (for non-match invoices) is released. Is this still a true statement?

unknown

At some point you can't set it up from the AP side of things (not 100% sure what that is), but you can still set up a new RJE on GL70 for whatever/anything you want at any point in time.

amacknig

The point at which you can no longer access the "more" asterisk button is after the invoice has been released. Howerver, by not utilizing the AP creation of the RJ -GL70 you lose the abiltiy to drill back to the originating AP invoice from GL90 or any queries, the use of the GL238 report, also the rounding would have to be manually maintained. so if you have already released the invoice in AP, then yes, your only recourse is the Recurring Journal of GL70, which is always available.

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