6.5.3 Accounting Record Creation Processes

1 Types of Accounting record processes
2 Expected Results

Types of Accounting record processes

ADvendio offers six types of Accounting Record Creation Processes

Collection - collects revenue for invoiced Invoices for the relevant Accounting Period
Distribution - distributes the cost/revenue for RON items based on delivery data as well as for other billing categories
Accrual Creation - creates Accrual Records for amounts delivered but not yet invoiced
Accrual Reverse - reverse entry made to offset adjusting accrual entry made in the previous Accounting Period
Deferral Creation - creates Deferral Records for amounts invoiced but not yet delivered
Deferral Reverse - reverse entry made to offset adjusting deferral entry made in the previous Accounting Period

Additionally, Accounting Record creation for the following process can be disabled:

Please use the Checkbox field on the Campaign Item level for those Campaign Items you want to exclude from the Accounting Processes below:

exclude from the accrual process
exclude from the collection process
exclude from the deferral process
exclude from the distribution process

Collection Accounting Records will be created for zero amount invoice items by default. This can be deactivated, read more about 7.6.8.2 Feature Settings for the Accounting Interface.

Expected Results

Below are examples of the expected results from all Accounting Record Creation processes. Note, this is an example of a basic invoiced Campaign, if cancellations or credit notes are concerned the debit/credit value of the Account Record may be reversed, depending on the transaction type of the Media Campaign.

For Collection, the following Accounting Rules are used to make the following Account Records

Accounting Rule	Process	Accounting Record Type (Debit/Credit)

Accounting Rule	Process	Accounting Record Type (Debit/Credit)
Account Transaction - Cost*	Collection	Collection - Cost (Credit)
Account Transaction - Revenue*	Collection	Collection - Revenue (Debit)
Collection - Cost	Collection	Collection Cost (Debit)
Collection - Revenue	Collection	Collection - Revenue (Credit)

* Account Transactions are optional to get additional postings in certain cases.

For Distribution, the following Accounting Rules are used to make the following Account Records

Accounting Rule	Process	Accounting Record Type (Debit/Credit)

Accounting Rule	Process	Accounting Record Type (Debit/Credit)
Collection - Cost	Distribution	Distribution - Cost (Credit)
Collection - Revenue	Distribution	Distribution Revenue (Debit)
Distribution - Revenue	Distribution	Distribution - Revenue (Credit)
Distribution - Cost	Distribution	Distribution - Cost (Debit)

For Accrual Creation, the following Accounting Rules are used to make the following Account Records

Accounting Rule	Process	Accounting Record Type (Debit/Credit)

Accounting Rule	Process	Accounting Record Type (Debit/Credit)
Distribution - Cost	Accrual Creation	Accrual - Cost (Debit)
Distribution - Revenue	Accrual Creation	Accrual Revenue (Credit)
Collection - Revenue	Accrual Creation	Accrual - Revenue (Credit)
Accrual - Revenue	Accrual Creation	Accrual - Revenue (Debit)

For Accrual Reverse, the following Accounting Rules are used to make the following Accounting Records

Accounting Rule	Process	Accounting Record Type (Debit/Credit)

Accounting Rule	Process	Accounting Record Type (Debit/Credit)
Accrual - Revenue	Accrual Reverse	Accrual - Revenue - Reverse (Credit)
Distribution - Revenue	Accrual Reverse	Accrual - Revenue - Reverse (Debit)
Collection - Revenue	Accrual Reverse	Accrual - Revenue - Reverse (Debit)
Accrual - Cost	Accrual Reverse	Accrual - Cost - Reverse (Debit)
Distribution - Cost	Accrual Reverse	Accrual - Cost - Reverse (Credit)
Collection - Cost	Accrual Reverse	Accrual - Cost - Reverse (Credit)

For Deferral Creation, the following Accounting Rules are used to make the following Accounting Records

Accounting Rule	Process	Accounting Record Type (Debit/Credit)

Accounting Rule	Process	Accounting Record Type (Debit/Credit)
Collection - Revenue	Deferral Creation	Deferral - Revenue (Debit)
Deferral - Revenue	Deferral Creation	Deferral - Revenue (Credit)
Collection - Cost	Deferral Creation	Deferral - Cost (Credit)
Deferral - Cost	Deferral Creation	Deferral - Cost (Debit)

For Deferral Reverse, the following Accounting Rules are used to make the following Accounting Records

Accounting Rule	Process	Accounting Record Type (Debit/Credit)

Accounting Rule	Process	Accounting Record Type (Debit/Credit)
Deferral - Revenue	Deferral Reverse	Deferral - Revenue - Reverse (Debit)
Collection - Revenue	Deferral Reverse	Deferral - Revenue - Reverse (Credit)
Deferral - Cost	Deferral Reverse	Deferral - Cost - Reverse (Credit)
Collection - Cost	Deferral Reverse	Deferral - Cost - Reverse (Debit)