AR Ledger

An AR Ledger is where the billing activity done in GTV is recorded as journal entries, also called transactions. Each AR ledger in Revenue Management is assigned a chart of accounts (COA) and a posting rule set. The chart of accounts is a collection of structured GL accounts, and, optionally, GL categories that determine which GL accounts are used when creating posting rules. The posting rule set contains the rules that drive what, when, and how transactions post. The posting rules analyze the billing activity and determine what activity should be recorded as a transaction.

Each AR ledger has an accounting calendar that controls the posting date of each transaction. The accounting calendar is a collection of accounting years that are divided into accounting periods. The start and end dates of the accounting years and periods are customizable, making it easy to duplicate your existing fiscal year calendar. The Open or Closed status of the accounting period prevents the posting of transactions into a closed period.

Multi-currency billing activity generates a transaction using the billing activity’s original currency and amount. When the AR ledger is configured to include currency conversion, a conversion currency is assigned. As transactions generate, the original amount is converted utilizing a currency exchange rate processor. All transactions post in both the original currency and the conversion currency of an AR ledger.

Multiple AR ledgers can be created and Active at the same time. Every AR ledger analyzes the same billing data and produces transactions based on the posting rule set assigned to each AR ledger. This is useful for multi-entity accounting or comparing different kinds of financial reporting for the same activity. As seen in the image below, you could compare cash-basis and accrual-basis accounting by creating multiple AR ledgers that use a different combination of chart of accounts and posting rule sets to create different transactions using the same billing data. An AR ledger can be assigned a billing account category to limit what data the posting rules look at to a specific segment of customers.

Data and Process Flow

As billing-related activity occurs, the GTV billing platform creates records of all activity. The revenue management application queries these records and charge information records, which represent the billing activity, are created. The posting rules use the charge information records to create transactions.

Workflow from Billing Activity to a Transaction

The following is an example of the flow of data from the GTV billing activity of a customer payment to the resulting transaction in an AR ledger.

  1. A customer payment is made in GTV, as seen in the billing account under the Payments tab.

  2. A charge info record is created for the payment once the Collector process is complete in Revenue Management. You can view this information on the charge info record page found by selecting Charge Info Records from the left pane in Revenue Management.

  3. An Active AR ledger has an assigned posting rule set that contains a payment posting rule, shown below. This posting rule searches for any charge info records with a payment transaction type and creates two accounting entries using the posting rule parameters and the information contained in the charge info record.

  4. A transaction, which consists of two balanced accounting entries, posts to the AR ledger once the payment posting rule is applied and the AR Ledger process completes.

Setup Overview

You will complete the following steps to get up and running with an AR ledger that posts transactions:

  1. Create AR Ledger.
    1. Assign chart of accounts.
    2. Assign posting rule set.
    3. Create accounting years and accounting periods.
    4. Make status Active.
  2. Generate Transactions.
    1. Create billing activity to process.
    2. Run collector process. You can schedule this to run automatically at intervals by contacting GTV Support.
    3. Run AR ledger process. You can schedule this to run automatically at intervals by contacting GTV Support.

Creating an AR Ledger

Create an AR ledger capable of generating transactions from billing activity. You may want to initially create a Draft AR ledger using the minimum required fields and, later, add the chart of accounts, posting rules, and accounting periods required to change it to Active status.

Before creating an AR ledger, you will need to create a COA, create a posting rule set, and enable a currency exchange rate processor (if converting currency in the AR ledger). GTV highly recommends coordinating with GTV Support before creating a production AR ledger.

Note: All GL accounts used in the posting rule set must be found in the chart of accounts assigned to the same AR ledger.

To create an AR ledger:

  1. Select Revenue Management from the Gotransverse action menu .
  2. Select AR Ledger from the left pane.
  3. Select Create AR Ledger from the AR Ledger action menu.

  4. Complete the relevant fields in the Create AR Ledger window.

    FieldDescription
    AR Ledger Name*Add a name for the AR ledger. The name must be unique.
    Status*Select one of the following statuses for your AR ledger:
    • Draft—The AR ledger configuration can be edited after creation when in Draft status. The AR ledger cannot create transactions.
    • Active—The AR ledger can create transactions.
    Active status is only available to select in the Create AR Ledger window once you have completed these fields:
    • Chart of accounts is assigned.
    • Posting rule set is assigned.
    • Convert currency settings are selected.
    • Accounting periods are created. This can be accomplished during AR ledger creation using auto-generate periods.
    DescriptionAdd any additional information you need regarding this specific AR ledger.
    Chart of AccountsSelect a chart of accounts. Only Active chart of accounts are available.

    The chart of accounts will define which GL accounts are used with this AR ledger and how those GL accounts are structured.
    Posting Rule SetSelect a posting rule set. Only Active posting rule sets are available.

    The posting rules determine when and why transactions post to this AR ledger.
    Billing Account CategorySelect a billing account category. You can add more than one billing account category to an AR ledger.

    When a billing account category is assigned, the transactions created are limited to charge information records with the specific billing account category.
    Convert Currency*Select one of the following options from the drop-down menu:
    • No—Currency conversion is not needed. Transactions are created using the original currency and amount.
    • Yes—Currency conversion is needed. Transaction amounts are created for both the original currency and the conversion currency.
    Customer LifetimeEnter the expected customer lifetime defined by the number of months. It’s used to amortize the deferred amount of a one-time product purchase over the defined period of time when certain posting rules are instantiated.
    Auto Generate PeriodsSelect the check box to automatically generate an accounting year with accounting periods by calendar months. You will have an opportunity to edit the accounting periods, if needed. If the check box is selected, three additional fields are required to continue:
    • Period Name*—Enter the name of the accounting year.
    • Start Date*—Enter the first date of the accounting year. This must be the first date of a month.
    • Number of Months*—Enter the number of monthly accounting periods to create after the start date. All accounting periods will start with the first of the month. For example, if the start date is January 1st, then the following months will have the 1st as the start date.
    Clear the check box if you do not want accounting periods auto generated. You can manually create accounting years later.
    Create Zero Amount EntriesSelect the check box to allow the posting rules to post transactions even when billing activity has zero value.

    Clear the check box to prevent the posting rules from posting transactions when billing activity has zero value.
    (*)Indicates required field.
  5. Select Create

Next, AR ledgers must have a chart of accounts, a posting rule set, an accounting calendar, and an Active status to start generating transactions.

  • Follow the Create Accounting Years and Periods instructions below if the accounting periods were not auto-generated as the AR ledger was created.
  • Follow the Editing an AR Ledger instructions below to add the chart of accounts, add the posting rule set, and change the status to Active if the AR ledger is in Draft status.

Editing an AR Ledger

The AR ledger information can be edited. Some AR ledger fields cannot be changed once an AR ledger has generated transactions. A history of changes made to the AR ledger is found by selecting the Summary tab of an AR ledger and selecting the History detail tab.

  1. Select Revenue Management from the Gotransverse action menu .
  2. Select AR Ledger in the left pane.
  3. Locate an AR ledger to edit and do one of the following:
    • Click the ellipsis button in the Actions column, then select Edit.

    • Select the desired AR ledger, then select Edit AR Ledger in the AR ledger action menu.

  4. In the Edit AR Ledger window, you can make changes to any fields that are not grayed out. This is where you can assign the chart of accounts, posting rule set, and change the status to Active if you didn’t do so when creating the AR ledger.

  5. Select Edit.

Deleting an AR Ledger

AR ledgers that have not generated transactions can be deleted. Once deleted, the AR ledger will be removed from the AR ledger list.

  1. Select Revenue Management from the Gotransverse action menu .
  2. Select AR Ledger in the left pane.
  3. Locate an AR ledger to delete and do one of the following:
    • Click the ellipsis button in the Actions column, then select Delete.

    • Select the desired AR ledger, then select Delete AR Ledger from the AR ledger action menu.

  4. Select Yes in the Confirmation window.

Managing Accounting Calendar

The accounting calendar defines the accounting periods for the fiscal year. The accounting calendar consists of accounting years and each accounting year consists of several accounting periods with defined start and end dates. Accounting periods can have custom dates to accommodate a variety of fiscal year models. Each accounting period has an open or closed status that can be used to prevent transactions from posting into a closed accounting period. After creating an accounting year and its accounting periods, you can also edit or delete accounting years and accounting periods provided transactions have not been posted using the dates defined in the accounting periods.

Note: The accounting calendar must have accounting periods with no date gaps. The AR ledger run will fail if it tries to create transactions for accounting periods that do not exist.

Accounting Periods and Posting Dates

In Revenue Management, the posting rules work with three dates from the billing system and the accounting periods that are open or closed to determine the correct accounting period and posting date that are assigned to transactions.

  • Event Date—This is the date financial activity or other actions in GTV billing occurred. For example, if a payment is posted September 2 at 12pm, this is the event date/time.
  • Occurred On Date—This is the date of the financial activity. For example, if the payment noted above was backdated to August 27, then this is the occurred on date.
  • Posted Date—This is the date created by the posting rules based on the two dates above.
    • For example, if accounting period is open: The August accounting period was closed on September 3, and open prior to that date, and the September accounting period was and remains open. Since the August accounting period was open on September 2 at 12pm (the event date), the posting date will fall into the August accounting period, the payment transaction will have a posting date of August 27, and an occurred on date of August 27.
    • For example, if the accounting period is closed: The August accounting period was closed on September 1, and open prior to that date, and the September accounting period was and remains open. Since the August accounting period was in a closed status on September 2 at 12pm (the event date), the posting date will fall into the September accounting period, the payment transaction will have a posting date of September 1, and an occurred on date of August 27.

Creating Accounting Years and Accounting Periods

You have two options when creating accounting years if you did not auto generate them during creation:

  • Create an accounting year that auto-generates monthly accounting periods. You can edit the start and end dates of the periods after they are auto-generated. For example, if your month end dates vary slightly, you can adjust the end dates of the accounting periods after you auto-generate them, but before you save the accounting year.
  • Create an accounting year and manually add accounting periods to the year. For example, if your fiscal year follows a 4-4-5 format, you can edit the start and end dates of each accounting period as you add the accounting period.

To create an accounting year and accounting periods:

  1. Select Revenue Management from the Gotransverse action menu .
  2. Select AR Ledger in the left pane.
  3. Select Create Accounting Year from the AR Ledger action menu.

  4. Complete the relevant fields in the Create Accounting Year window.

    • Year Name*—Add a name for the accounting year. For example, 2020 or FY2020.
    • Start Date*—Enter the first date of the accounting year. It must be the first of a month. This will also be the start date of the first accounting period of the accounting year.
    • Auto Generate Periods*:
      • Select the check box and accounting periods will auto-generate when you click create. You are required to enter the Number of Months when this is selected.
        • Number of Months*—Enter the number of accounting periods to be automatically created for this accounting year. The first accounting period will use the start date entered above. Each period will start with the first day of the month. You will have to option to edit the accounting period start and end dates after you click create.
      • Clear the check box and no accounting periods will be created. You will need to add accounting periods manually instead after you select Create.
    • (*)Indicates required field

  5. Select Create. This will direct you to the Create Accounting Year page, where the details of the accounting periods will be finalized.

  6. Next, complete one of the following options from the Create Accounting Year page:
    • Select Create If the accounting year and accounting periods are correct as is. This is the most common way users create their accounting years when following a calendar year.
    • Edit the accounting year information, including an optional description. Edit the accounting period name, start date, end date, and, optionally, add a quarter.

    Columns for the accounting period, as seen in the image above, include:

    FieldDescription
    PeriodA unique ID number associated with the accounting period. This number is system-generated.
    Name*Enter a name that best reflects the accounting period.
    Start Date*Enter the start date of the accounting period. The start date represents the first date of the accounting period.

    The first accounting period will have the same start date as the start date of the accounting year. For the accounting periods that follow, the start date must be the same as the end date of the previous accounting period.

    End Date*Enter the end date of the accounting period. The end date represents the day after the final date of the period. It must be the same as the start date of the previous accounting period.
    Status*Select the status of the accounting period. The options are:
    • Open—Transactions can have a posting date in that accounting period.
    • Closed—Transactions cannot have a posting date in that accounting period. The posting date will be the start date of the next open accounting period.
    The default status is Open when an accounting period is created. The status cannot be changed during creation but can be edited after the accounting year is created.
    QuarterEnter a name best reflecting the quarter. This is used for reporting.
    (*)Indicates required field.
  7. Manually add the accounting periods if they were not auto-generated while creating the accounting year. You must have a minimum of one accounting period to save an accounting year. To do this:
    1. Click Add Accounting Period. This will add a new accounting period to the bottom of the table.
    2. Optionally, click Add Accounting Period multiple times to add as many accounting periods as needed.

      Note: The system will generate each new accounting period based on the previous accounting period’s end date. The first accounting period will have the same start date as the accounting year.

    1. Edit each accounting period’s details as needed.
    2. Select Create.

Managing Transactions

Transactions represent a balanced journal entry. Each transaction consists of two or more accounting entries that balance. The image below represents one transaction and each line represents an accounting entry. Transactions are primarily created by the posting rules set assigned to the AR ledger; however, manual journal entries can be posted to create a transaction. Transactions can be viewed but cannot be edited or deleted from the AR ledger.

The following details are visible when viewing transactions in an AR ledger:

Field Description
Transaction ID A transaction ID is assigned to all transactions generated from the same posting rule. Use the filters in the Transaction tab to search by Transaction ID and find the related debit and credit transactions. This is a system-generated number.
Transaction Date The date the event occurred, also referred to as the occurred on date.
Posted Date The date the trigger event occurred if the accounting period for that date is open. If the accounting period is closed, the posting date will be the next available posting date in the next open accounting period. This is also referred to as the created on date.
Entry System-generated number unique to each transaction.
GL Account Number Number of the GL account related to the transaction.
GL Account Name Name of the GL account related to the transaction.
Billing Account Number Number of the Billing Account related to the transaction.
Billing Account Name Name of the Billing Account related to the transaction.
Transaction Type Type of billing activity that occurred like Invoice or Payment.
Description Description of the transaction that is derived from the posting rule used to generate the transaction. It’s recommended to indicate a reason for a transaction like Customer Payment Posted or Recurring Revenue Recognition when creating the Posting Rule.
Debit Amount Debit amount determined by the posting rule.
Credit Amount Credit amount determined by the posting rule.

Creating Manual Journal Entries

A manual journal entry (entry) allows you to post transactions without using a posting rule. Transactions from posting rules always involve a billing account, but if you need to make correcting entries between GL accounts, you will need to use a manual journal entry. The manual journal entry lines entered will be posted as transactions. Every entry requires the total amount of debits and credits are zero, ensuring balanced transactions. Entries can be posted immediately or created as a draft entry, which allows entries to be reviewed later or edited before posting.

Draft entries can be found in an AR ledger under the Transactions tab, then the Draft Entries detail tab.

To create a manual journal entry:

  1. Select Revenue Management from the Gotransverse action menu .
  2. Select AR Ledger in the left pane.
  3. Select an AR ledger from the list.
  4. Select Create Manual Journal Entry from the AR Ledger action menu.

  5. Complete the relevant fields in the top section on the Create Manual Journal Entry page. This information will carry over to all transactions resulting from the manual journal entry lines.

    FieldDescription
    Billing Account*

    Select the billing account related to the journal entry.

    If no billing account is required, leave this field blank and select Do Not Use Billing Account in the next field.

    Do Not Use Billing Account

    Select the check box if no billing account will be required to create the transaction. You would use this option if you are creating a transaction without a specific billing account, such as an AR reserve or a consolidated adjustment for many billing accounts.

    Clear the check box if a billing account is required to create the transaction.

    Currency*Select the currency code for the transaction. If a billing account is selected, then the currency will be populated for you.
    Use Conversion Currency

    Select the check box if the transaction will be posted in the ledger’s converted currency. This option is only available if conversion currency is turned on for the ledger and if the journal entry is not posted for a billing account.

    Clear the check box if no currency conversion is necessary.

    Occurred On*Enter the date that reflects the date on which the financial activity occurred. This does not impact the posting date which will be determined by the accounting period.
    (*)Indicates required field.
  6. Add as many manual journal entry lines (lines) as needed by clicking + Add Entry Line. You will need at least two lines.

    Note: Lines must have a GL account and an amount to debit or to credit. A line cannot have both a debit and credit amount; one field must be left blank. The sum of debits less the sum of credits must total zero.

    The balance of the manual journal entry is displayed in the upper right corner showing total debits, total credits, and net amount. The journal entry cannot be created or posted until the net amount total is zero. Lines can be removed by clicking the X to the right of each entry line.

  7. Complete one of the following, once all required fields are entered and the Net Amount totals zero:
    • Create a Draft Entry—Select Create to save the entry as a Draft entry. The Draft entry will not create transactions until it is posted.
    • Post the Manual Journal Entry—Select Post to save and immediately post the entry.

      The resulting transaction displays, as shown in the image below.

Generating Transactions

Two processes must occur for billing activity to translate into transactions: a collector process and an AR ledger process.

  • Collector Process—The collector process gathers the billing activity and converts the data into charge info records. This prepares the data for the posting rules. The process uses individual collectors for specific areas of GTV, like Invoices or Payments, to gather information on the related billing activity. Depending on how your system is configured, you will only need specific collectors. To understand which collectors are needed, contact GTV Support.
  • AR Ledger Process—The AR ledger process creates transactions in your AR ledger by applying the posting rule set to the new charge info records created from the collector run.

Both of these processes are typically scheduled to run automatically once per day through configuration by GTV Support. This ensures transactions are automatically posted to your AR Ledger within 24 hours of the billing activity. In the event you want to generate transactions before the next scheduled process, you can manually initiate both processes. For example, if you created a manual invoice and wanted to see the related transaction(s) in an AR ledger before the next scheduled process, then you can manually run the collector and AR ledger processes to generate the transactions on demand.

Manually Running the Collector Process

The collector process, also known as the collector run, will create charge info records for billing activity that was not previously collected and translated into charge info records. We recommend initiating the collector process first so that you will have the most recent billing activity captured and prepared as charge info records.

  1. Select Revenue Management from the Gotransverse action menu .
  2. Select AR Ledger in the left pane.
  3. Select Run Collector from the AR Ledger action menu.

  4. Select the check boxes for the collectors you want to run in the Run Collectors window. Clear the check boxes for collectors you do not want to run. Contact GTV Support for assistance in understanding which collectors may be needed.

    Note: Click Configure Fields to adjust which collector options display.

  5. Select Run Collectors to start the collection.

    When the collector process is done, new charge info records will be added to the list found on the Charge Info Records page. Navigate to the list by selecting Charge Info Records from the left pane in Revenue Management.

    To generate transactions from the new charge info records, manually run the AR Ledger process, next.

Manually Running the AR Ledger Process

The AR ledger process, also known as the AR ledger run, creates transactions in your AR ledger by applying the posting rule set assigned to the AR ledger to the new charge info records created from the collector run. You will need to follow the instructions below for each AR ledger for which you want to generate transactions.

  1. Select Revenue Management from the Gotransverse action menu .
  2. Select AR Ledger in the left pane.
  3. Select an AR ledger from the list.
  4. Select Run AR Ledger from the AR Ledger action menu.

  5. Select Yes to start the process of generating transactions.

    When the AR ledger run process is done, new transactions are added to the list of transactions found in the AR ledger. Navigate to the list of transactions by selecting the Transactions tab in the AR ledger.

For information about how to use the AR Ledger API, refer to the Revenue Management API Guide.