Below is an outline of how the automated journal entries in the Association Manager system work. The journal entries are created by going to Utilities – Routines – General Ledger Journal Entries – Journal Entries Create Automatic.
Note: Contact CDS support prior to running this routine for the first time. The program needs to be setup for each association according to the outside accounting package that is being used.
Cash Receipts and Credit Card Deposits: Debit to cash account, credit to the various A/R accounts (Dues, Events, Products, Peer Review) as follows:
•The debits to cash are broken down by cash account (manual deposit, lockbox, credit card), then by deposit date, then by deposit reference number.
•The credits are summarized to a single amount to each A/R account. Entries to miscellaneous cash receipts are credited directly to the coded G/L account.
•Credit card credits are posted on a separate journal entry.
Dues Entries:
•Revenue is broken down by billing type and transaction type which can be directed to a single account for all, or up to six different accounts if the breakdown is required. The billing type breakdown is between annual dues billing, postings made using the monthly billing program and postings made using the individual billing program. The transaction type breakdown is between original dues billings and adjustments to dues billings.
•Refunds are broken down between cash and credit card refunds. Credit card refunds are recorded as debits to the dues A/R account and credits to the credit card bank account. Cash refunds are recorded as debits to the dues A/R account and credits to the account coded in the link file as the Dues Refund liability account. If the system sets up an A/P voucher for the refund, this same account number will be used for the voucher. If the association does the refund manually, this same account should be used.
•Money on Account (MOA) transfers are broken down between transfers to/from the Names MOA and transfers to/from the Firms MOA. Transfers into Dues from the MOA are recorded as a credit to the Dues A/R account and a debit to the MOA account. Transfers from Dues to the MOA are the opposite.
Events Entries:
•Revenue is all credited to the actual revenue account during the month that the fee or adjustment is posted, with an offsetting debit to A/R. A deferral is posted that debits actual revenue and credits the deferred revenue account for cumulative revenue on any event with a closing date after the end of the current month. This revenue deferral entry is set up as an automatic reversing journal entry and is reversed the following month.
•Money on Account (MOA) transfers are broken down between transfers to/from the Names MOA and transfers to/from the Firms MOA. Transfers into events from the MOA are recorded as a credit to the Events A/R account and a debit to the MOA account. Transfers from Events to the MOA are the opposite. Payments posted directly into the MOA are recorded as a debit to A/R and a credit to the MOA accounts. This is because they are grouped as events payments on the cash receipts journal entry and the initial cash receipt is recorded as a credit to A/R. Check refunds from the MOA are recorded as a debit to the MOA account and a credit to the account coded in the link file as the Events Refund liability account. Credit refunds from the MOA are recorded as a debit to the MOA account and a credit to the credit card bank account.
•Refunds (excluding MOA refunds) are broken down between cash and credit card refunds. Credit card refunds are recorded as debits to the events A/R account and credits to the credit card bank account. Cash refunds are recorded as debits to the Events A/R account and credits to the account coded in the link file as the Events Refund liability account. If the system sets up an A/P voucher for the refund, this same account number will be used on the voucher. If the state does the refund manually, this same account should be used.
Products Entries:
•For product sales, revenue is credited to the G/L account coded for each product in the products masterfile. For self-study, if the product G/L account is left blank, the system will assign the general self-study G/L account coded in the link file as the revenue account. The debit is to the Products A/R account.
•Total shipping fees are credited to the account coded in the link file for shipping fees with a debit to the Products A/R account.
•Total state sales tax is credited to the account coded in the link file for state sales tax with a debit to the Products A/R account.
•Total local sales tax is credited to the account coded in the link file for local sales tax with a debit to the Products A/R account.
•Money on Account (MOA) transfers are broken down between transfers to/from the Names MOA and transfers to/from the Firms MOA. Transfers into Products from the MOA are recorded as a credit to the Products A/R account and a debit to the MOA account. Transfers from Products to the MOA are the opposite.
•Refunds are broken down between cash and credit card refunds. Credit card refunds are recorded as debits to the products A/R account and credits to the credit card bank account. Cash refunds are recorded as debits to the products A/R account and credits to the account coded in the link file as the Products Refund liability account. If the system sets up an A/P voucher for the refund, this same account number will be used for the voucher. If the state does the refund manually, this same account should be used.
Peer Review:
•Revenue is credited into up to 9 different user defined accounts. The revenue entry is broken down between fees billed and fee adjustments, which can be coded to different accounts in the G/L link file. The system also breaks down the debit to A/R by account, which can also be coded to different accounts in the G/L link file.
•Money on Account (MOA) transfers are broken down between transfers to/from the Names MOA and transfers to/from the Firms MOA. Transfers into Peer Review from the MOA are recorded as a credit to the Products A/R account and a debit to the MOA account. Transfers from Peer Review to the MOA are the opposite.
•Refunds are broken down between cash and credit card refunds. Credit card refunds are recorded as debits to the Peer Review A/R accounts and credits to the credit card bank account. Cash refunds are recorded as debits to the Peer Review A/R accounts and credits to the account coded in the link file as the Peer Review Refund liability account. If the system sets up an A/P voucher for the refund, this same account number will be used for the voucher. If the state does the refund manually, this same account should be used.
Accounts Payable:
•Vouchers – the general ledger account(s) the voucher is coded to are debited and the A/P account specified in the G/L Link file is credited.
•Checks Written – the A/P Bank account specified in the G/L Link file is credited and the A/P account specified in the G/L Link file is debited
•Checks Voided – checks issued and then voided are debited to the A/P Bank account and credited to the A/P account.
Events Revenue/Expense Deferral:
•Cumulative revenue for events with closing dates in future periods is debited to actual events revenue and credited to the Events Deferred Revenue accounts specified in the G/L Link file. This entry is set up to automatically reverse the following month. Note: for states where the event closing date and event begin date are always the same, there is a setting in System Preferences that can specify this and the system will use begin date instead of close date to defer revenue.
•Cumulative expense for events with closing dates in future periods is credited to the specific actual events expense accounts and credited to the Events Deferred Expense accounts specified in the G/L Link file. This entry is set up to automatically reverse the following month. The journal entry makes these reversals for items entered via A/P, Miscellaneous Cash Receipts and Manual Journal Entries.
Manual Journal Entries/Auto Reversing Entries:
•Manual journal entries are posted as entered. Reversing entries are posted to reverse the prior month’s entry.