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AR Ledger Setup

It is highly recommended that the user consider any reporting requirements prior to committing to the charge categories and custom fields associated with products and charges that have been or will be set up in Gotransverse billing as well as the AR Ledger setup. A Gotransverse implementation specialist can assist with this evaluation.

GL Accounts and Categories

GL account setup can be completed from the Setup screen of the Revenue Management microservice. General Ledger accounts should be designed with the following best practices in mind:

  • General Ledger Account numbers should correspond to the account number in your ERP system.
  • You can have two General Ledger accounts with the same number, but they must have different account names. This functionality can be useful in the case of an acquisition or merger of ledgers.

Creating a GL Account

To create General Ledger Accounts:

  1. Navigate to the Setup page of the Revenue Management microservice.
  2. Click Create GL Accounts from the Setup action menu.
  3. Enter the required fields and description if desired.
Field Description
*GL Account

The account number for the GL account. The GL Account number should correspond to the account number in your ERP system. You can have two General Ledger accounts with the same number, but they must have different account names. A GL Account number may only be changed when the account status is draft.

Note: This field accepts all alphanumeric characters.

*GL Account Name The name to display for the account. Can be used for easy filtering of many accounts. A GL Account Name may only be changed when the account status is draft or active.
*Status

Valid account states are draft, active, suspended, and cancelled. An account may also be deleted.

  • The initial account status can either be set to draft or active.
  • Thereafter, an account may be changed back to draft if it does not have any parent accounts or categories assigned to it, and it isn't itself assigned as a parent to another account.
  • An account may be changed to active or suspended without restriction.
  • An account may be cancelled if it isn't associated with any GL Posting Rules.
  • A user may delete an account in draft status if it is not assigned to a Chart of Accounts.
  • A user may delete an account in active, suspended or cancelled status if it is not assigned to a Chart of Accounts and there are no transactions posted on any ledger for that account.
  • An account that has been deleted cannot be recovered.
Description This optional field allows additional detail to be added to the account. The description can be changed when the account status is draft or active only.
*Posting Account

If unchecked: Leaving this box unchecked will result in an account that can be assigned as a parent to other accounts. These non-posting accounts can only be assigned to accounts of the same Type. Non-posting accounts can be converted into posting accounts if it is not assigned as a parent to another account in a chart of accounts. Parent/child relationships are assigned on the Chart of Accounts.

If checked: Checking this box will create a GL account that can have transactions posted to it. These accounts cannot be reverted to non-posting accounts once transactions have been posted for this account in any ledger. Posting accounts can be child accounts of non-posting accounts (with the same Type) but cannot be assigned as a parent in a chart of accounts.

*Type The Type field includes options for: Asset, Liability, Equity, Expense, and Revenue. The Type can only be changed when the account is in draft status. Both accounts in a parent/child relationship defined on a chart of accounts must both be of the same Type. An account category assigned to an account on a chart of accounts must be of the same Type as the account to which it is assigned, and designations must be of the same Type as the account to which it has been assigned.
*Designation

This field allows you to add an additional attribute to the GL Account. An account may only be assigned a Designation of the same type as the account.

A Designation with a Category of "Sub-Ledger" represent accounts for which supporting reports can be generated, and there should be no manual entries posted to those accounts, although no restrictions are in place currently to prevent that.

A Designation with a Category of "Contra" represent accounts that have "normal" balances opposite of the rest of the accounts of that type. For example, Assets typically have a debit balance, however AR Reserve (aka Bad Debt Reserve) and Sales Reserve (aka Sales Returns and Allowances) accounts typically have credit balances are known as "contra assets". This Category assignments exist to help with reporting.

Designations are defined with a type and a designation category, as follows:

Designation Category Type
Cash None Asset
Unbilled AR Sub-Ledger Asset
Billied AR Sub-Ledger Asset
AR Reserve Contra Asset
Sales Reserve Contra Asset
Contract Asset Sub-Ledger Asset
Customer Prepaid Liability None Liability
Sales Tax Liability Sub-Ledger Liability
Deferred Revenue Sub-Ledger Liability
Equity None Equity
Recognized Revenue None Revenue
Sales Allowance Contra Revenue
Bank Fee None Expense
Sales Tax Expense None Expense
None None Any
Chart of Accounts

Select one or more Chart of Accounts to which the account will be assigned. Accounts can also be created by adding directly to a Chart of Accounts as detailed in the Chart of Accounts section below.

*Indicates required field

Creating a GL Category

To create General Ledger Categories, select the Create GL Categories from the Setup action menu. Category names must be unique and category Type and Status cannot be edited once moved out of Draft state. Hierarchical relationships between Categories should be managed from the GL Categories tab of your Chart of Accounts.

Field Description
*GL Category Name The name of the category. A GL Category Name may only be changed when the category status is draft or active.
*Status

Valid category states are draft, active, suspended, and cancelled.

  • The initial category status can either be set to draft or active.
  • Thereafter, a category may be changed back to draft if it has not been assigned any parent category and it isn't itself assigned as a parent to another category.
  • A category may be changed to active or suspended without restriction.
  • A category may be cancelled in any status if it isn't assigned to a Chart of Accounts.
  • A user may delete a category in any status if it isn't assigned to a Chart of Accounts.
  • A category that has been deleted cannot be recovered.
Description This optional field allows additional detail to be added to the category. The description can be changed when the account status is draft or active only.

*Indicates required field

Chart of Accounts

The General Ledger Chart of Accounts can be created from the Setup module action menu of the Revenue Management. Designing a Chart of Accounts allows you to easily duplicate, move or edit GL Accounts between AR Ledgers, providing a smooth mechanism for setting up test and production ledgers without needing to redo the setup process. After entering the Chart of Accounts name and description, you can begin adding GL accounts and categories to the ledger.

Field Description
*Chart of Accounts Name The name of the chart of accounts. A chart of accounts name may only be changed when the chart of accounts status is draft or active.
*Status

Valid chart of accounts status' are draft, active, suspended, and cancelled. The initial chart of accounts status can either be set to draft or active.

  • Thereafter, a chart of accounts may be changed back to draft if it isn't assigned to an AR Ledger.
  • A chart of accounts may be changed to active or suspended without restriction.
  • A chart of accounts may be cancelled in any status if it isn't assigned to an AR Ledger.
  • A user may delete a chart of accounts in any status if it if it isn't assigned to an AR Ledger.
  • A chart of accounts that has been deleted cannot be recovered.
Description This optional field allows additional detail to be added to the chart of accounts. The description can be changed when the account status is draft or active only.

*Indicates required field

Once you have saved your Chart of Accounts, you will be able assign GL accounts two ways and assign GL categories.

Assigning GL Accounts to a Chart of Accounts

  1. From the Chart of Accounts action menu, select Assign GL Accounts.
  2. Check the boxes for each category that you'd like to assign. You can also use the search bar on the left to find your desired account by number, name, type or designation. Only categories with an active status will be available to be assigned to the Chart of Accounts.
  3. Click Assign to Chart to save.

If multiple accounts are assigned at once but an error is thrown, the non-errored accounts will still be added to the Chart of Accounts.

Adding GL Categories to a Chart of Accounts

  1. From the Chart of Accounts action menu, select Assign GL Categories.
  2. Check the boxes for each category that you'd like to assign. You can also use the search bar on the left to find your desired category by name, type, and designation. Only categories with an active status will be available to be assigned to the Chart of Accounts.
  3. Click Assign to Chart to save.

If multiple categories are assigned at once but an error is thrown, the non-errored categories will still be added to the Chart of Accounts.

Now that you have added your Accounts and Categories, you may configure relationships that are unique to this chart of accounts.

Configuring GL Account Relationships

You may reach the GL account relationship configuration screens in three ways: from the Chart of Accounts Information GL Accounts tab, select Configure GL Account Relationships action; from the Chart of Accounts menu, select Configure GL Account Relationships; and from the from the Chart of Accounts menu, select Edit Chart of Accounts and select the configuration cog for a GL account.

To configure a GL Account, add a Parent GL Account and a GL Category. All active accounts and categories of the same Type as the GL Account being configured can be selected. If the account or category isn't already a part of the chart of accounts, it will be added.

Posting Rules and Posting Rule Sets

Posting rules define the journal entries that are posted to a ledger. Usage populates parameters that posting rules use to create the desired transactions. For example, a Payment posting rule would require the user to enter a Gotransverse payment charge category ("PMT-Cash") and a payment type (payment, payment cancel, payment refund, etc.) and the rule would process a journal entry for all payment transactions that meet those criteria. As such, a Gotransverse tenant with five different charge categories would require five different posting rules for each payment type.

Once your posting rules have been configured, posting rules will be organized into a Posting Rule Set. The rule set, rather than individual rules, will then be assigned to the AR Ledger, and any transactions created by a rule in a General Ledger's rule set would post to that AR Ledger.

Creating a Posting Rule and Posting Rule Sets

  1. Click Create Posting Rule from the Setup action menu.
  2. Select the trigger for the posting rule. This selection will determine the available rule templates.
  3. Select the Posting Rule Template. After selecting the template, the Charge Information Type and Description fields will be displayed and Trigger and Posting Rule Template become read-only fields.
  4. Click Next.
  5. Add one or more Rule Name, Status and Description (if desired) for as many rules need to be defined for the rule being configured. Add additional rules from this template by clicking Add New Posting Rule.
  6. Click the Configure icon for further customization based on the particular rule template (e.g., payment type charge category, currency, debit and credit accounts, description, and status, for the payment rule discussed above).
  7. Click Create Rule to finalize all rules configured. Once the rules have been created, please note the following details will apply:
    • The user can edit the Name, Description, currency conversion date type, and non-GL Account parameters of the Rule in Draft or Active status only.
    • The status may be changed to Draft or Cancelled, and may delete the rule if the rule is not assigned to a Rule Set.
    • The status may be changed to Active or Suspended without restriction.
    • GL Accounts must be in Active status to assign to a rule's GL Account parameters, however, if the rule is assigned to a Rule Set that has been assigned to an AR Ledger that has also been assigned a Chart of Accounts, GL Accounts in active status must also be assigned to that Chart of Accounts.
    • Only Rules in Active status may be added to a Rule Set.
  8. Once all rules are created, select Create Posting Rule Set from the Setup action menu.
  9. Enter the Rule Set Name, Status, and Description (if desired). Draft rules cannot be added to a Posting Rule Set. An active Posting Rule Set can still be edited later to include more posting rules or exclude posting rules.
  10. To save your Posting Rule Set, click Save.
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