New Earned & Deferred Revenue Reporting Capability

❑Earned and Deferred Revenue is a somewhat complex concept.

•Basically, every Sales Invoice that is issued will normally be considered "earned" when it is created within the context of the every day accounting concepts with which most of us are familiar.

✓However, in the case of Recurring Revenue, those Sales Invoices are almost never fully "earned" when they are "billed" to the Subscriber.

✓This is because the Invoices for this Recurring Revenue are created a month (or a least a week or so) in advance of when the next period of service begins.

•So technically, when the money for those Recurring Revenue Sales Invoices is received before the entire period of service (for which they were Invoiced) has ended:

✓Those Receipts are deposited (and that income is often spent) before those services have been fully provided.

✓Therefore (that income) those Receipts, for that period of service time, would be considered unearned.

❑The new Deferred Revenue Report tells how must Revenue may be (has been) Deferred as of a specific Date.

•There are two ways to access the Deferred Revenue dialog:

a)From the Backstage Menu System Select Reports and Choose Receivable Reports, or

b)From the Quick Access Menu, Select Reports and Choose Receivable Reports.

✓Then, Select the Deferred Revenue option.

•Deferred Revenue tabs - There are three tabs on the Deferred Revenue dialog.

•Options - Initially only the Options tab is shown (until you make your Options selections and Select Print).

HelpFilesEarned&DeferredRevenueReportOptions

Earned/Deferred Revenue - Options tab

✓As Of - By default, the Date offered will by Today.

▪Use the Drop-Down Calendar/Date Entry field provided to Choose a different As Of Date for this Earned/Deferred Revenue, if needed.

✓Department - By default, the Earned and Deferred Revenue Amounts for All Departments will be included, but this report may also be limited to a selected Department.

▪Use the Drop-Down Selection List provided to Choose a specific Department to be the only one reported.

✓Division - By default, the Earned and Deferred Revenue Amounts for All Divisions will be included, but this report may also be limited to a selected Division.

▪Use the Drop-Down Selection List provided to Choose a specific Division to be the only one reported.

✓Sale Item - By default, the Earned and Deferred Revenue Amounts for Sale Items will be included, but this report may be limited to one Recurring Revenue Sale Item

▪Use the Drop-Down Selection List provided to Choose the specific Recurring Revenue Sale Item which is to be reported.

▪To report the Earned/Deferred Revenue for an Alarm Dealer - if you are Billing an Alarm Dealer's Accounts, use the Drop-Down Selection List provided to Choose the Division or Division Group for that Alarm Dealer, .

✓Account - By default, the Earned and Deferred Revenue Amounts for General Ledger Account assigned to Recurring Revenue Sale Items will be included, but this report may also be limited to a specific General Ledger Account assigned to a set of one or more Sale Item(s).

▪The same General Ledger Account may be assigned to more than one Recurring Revenue Sale Item.

▪Use the Drop-Down Selection List provided to Choose the specific General Ledger Account assigned to Sale Item(s) which is to be reported.

•Print - Click the Print button to Preview and optionally Print (to a File or a Printer) this Deferred Revenue Report.

✓To Exit this Report dialog, Click the Cancel button toward the bottom of the Options tab.

•Preview - The Preview tab presents the report which resulted from the Options you've selected.

✓Up Arrow/Down Arrow - hi - Moves the report one line up, or one line down, respectively.

✓Page Up/Page Down - Moves the report to the previous or next page, respectively.

HelpFilesEarned&DeferredRevenueReportPreview

Deferred Revenue Report - Preview tab

✓Home - - Using either the screen Icon or your Keyboard's Home key, moves the report to the top of the first page.

✓End - - Using either the screen Icon or your Keyboard's End key, moves the report to the bottom of the last page.

✓Arrows - The arrows allow you to move back and forth, from page to page.

✓Number - Indicates the page number you are viewing.

▪You may also type in a specific page number, Press 8 Enter and that page will be displayed immediately.

▪If you enter an invalid page number, it will be ignored.

✓Fit To Page - Click the first button after the arrows to size a full page of the report to fit the screen.

✓Zoom To 100% - Click the second button after the arrows to display the page at 100% (of the printed view).

✓Fit To Page Width - Click the third button after the arrows to size the page of the report to fit the full width of the screen.

✓Zoom To Percentage - Click the fourth button after the arrows to re-size the page of the report by percentage.

▪When you Click the Zoom To Percentage button, the Percentage selector will be displayed.

▪You may then Click the Up or Down ‚ arrow to set the exact amount of Zoom you want.

HelpFilesEarned&DeferredRevenueReportPreview2

Deferred Revenue Report - Preview tab - with Summary Recap and GL data

✓Print - Click the Print button to Print (to a File or a Printer) the displayed Deferred Revenue Report.

▪See Printing to a File for additional information ion how to save this report in several different file formats.

✓Email - Click the Email button to send the Report to an Email Address of your choosing.

•Exit the Form by Clicking the Close button ( X ) on the right at the top of the Form.

•Data View - This view provides a tabular (spreadsheet style) presentation of the selected data.

HelpFilesEarned&DeferredRevenueReportDataView

Deferred Revenue Report - Data View tab

✓Arrows - Click the arrows to move through the record.

✓Export - Exporting the data from this Data View tab (note the "fly-over" help available on these buttons):

▪Export to CSV - Click the first button after the arrows to export the data to a Comma Separated Values (CSV) file format.

▪Export To Excel - Click the second button after the arrows to export the data to an Excel (.xls) file format.

▪Export To Html - Click the third button after the arrows to export the data to an HTML formatted file.

✓To Exit the Data View tab and Close this Report dialog, Click the Close button on the right at the top of the Data View tab.

❑For General Ledger System Users: We suggest you use the automated Post Earned Revenue procedure, but this process could be done manually, if desired.

•This Deferred Revenue Report may be used as their General Journal Entry manual posting guide to distribute the Earned and Deferred revenues on a Monthly Basis.

✓That portion of the revenue that was able to be deferred into the next taxable year is defined in your Balance Sheet as a "Deferred Revenue" Liability Account.

•The General Journal Entry required to post the Deferred Revenues at the end of the year is to Debit each of the General Ledger Sales Account(s) containing the Deferred Revenue Amounts, and Credit the Deferred Revenue Liability Account for the total of that Deferred Revenue.

•Then, each month in the following year you must recognize that portion of the Deferred Revenue that was subsequently Earned in each of those months.

✓This is done by Debiting the Liability account for the earned revenue and Crediting each of the Sales account(s) for that portion that was earned within that sales category.

HelpFilesEarned&DeferredRevenueReportSample

Deferred Revenue Report - Summary Recap and GL data

❑The new Earned Revenue by Month Report tells your Company how much of the previously Deferred Revenue has subsequently been Earned.

•This Earned Revenue by Month Report tells your Company how much of that previously Deferred Revenue has subsequently been Earned.

✓It will itemize the Amounts of the previously Deferred Revenues that have now been earned during the chosen Accounting Period (e.g, within either a designated Month, or a designated Year)

✓It will be provided in either a Detailed, or a Summarized format, as requested by the User.

✓For General Ledger System Users, the associated General Ledger Accounts, and the Earned Revenue Values for each, are included in this Earned Revenue Report.

•There are two ways to access the Earned Revenue Report dialog:

a)From the Backstage Menu System Select Reports and Choose Receivable Reports, or

b)From the Quick Access Menu, Select Reports and Choose Receivable Reports.

✓Then, Select the Earned Revenue by Month option.

❑Earned Revenue tabs - There two three tabs on the Earned Revenue dialog.

•Options - Initially only the Options tab is shown (until you make your Options selections and Select Print).

HelpFilesEarnedRevenueReport-OptionsTab

•Report Type - Choose either a Detailed, or a Summarized format

✓Detail - Click this button to view a report formatted as shown immediately below:

HelpFilesEarnedRevenueReport-PreviewTab

✓Summary - Click this button to view a report formatted as shown immediately below:

HelpFilesEarnedRevenueReport-PreviewTab-Summary

•Sales Code(s) - Specify whether All or one Recurring Revenue Sales Category will be listed.

✓All is the default, but you may Click the One button and use the Drop-Down Selection List provided to Choose one Recurring Revenue Category to be reported.

HelpFilesEarnedRevenueReport-SalesCodesOption

•Report Period - Choose whether a One Month or One Year is to be reported

✓By default One Month is selected and the Date Range representing the most recently completed Month is inserted automatically.

HelpFilesEarnedRevenueReport-DateRange

✓One Year - If this will be an annualized report, Click the One Year button.

▪If One Year is selected, the Date Range representing the most recently completed Year is inserted automatically.

✓Date Range - Then, whether reporting for One Month or One Year, if it will be different than the default (i.e., the most recently completed Month or Year based on whether One Month or One Year was chosen), identify the Date Range to be used by entering the Start Date and End Date of that Date Range using the Drop-Down Date/Calendar Selection Boxes provided.

•Division - By default all Earned Revenue from all Divisions and Division Groups will be reported

✓To limit this Earned Revenue Report to listing those Earned Revenues from one Division or Division Group only, use the Drop-Down Selection List provided to Choose that Division or Division Group.

•Print - Click the Print button to Preview and optionally Print this Earned Revenue Report.