Accounting Guide

General Ledger Codes Request

To complete your GL Code Import, use the Excel Template provided by your Project Manager. Please review the information below to understand the uses for Asset and Liability GL Codes. If you or your Finance Department do not use these code types, CivicPlus will create alternatives for the purposes of configuration that can be edited in the future.

• Asset/Payment Account Codes

  • Uses: Incoming funds will touch/pass through this GL Code before they are distributed into the Revenue GL Code(s) related to the purchase. CivicPlus Recreation Management allows for either:

    • One asset code for all incoming cash, checks, and debit/credit cards (most common), or

    • One unique code for each payment type.

• Liability Account Codes

  • User Credit: CivicPlus Recreation Management allows staff to refund customers using User/Account Credit. These credits can be applied by the customer to a future purchase. Revenue lives in this GL Code until a purchase is made. Then the revenue moves into the Revenue GL Code(s) that corresponds with their purchase. Even if you do not plan to utilize User Credit for refunds, a GL Code is recommended in the event of overpayments, bulk refunds, or session transfers.

  • Refund Check Requests: When a refund check is initiated, revenue will be deducted from the Revenue GL Code of the original purchase and moved to this GL Code so the refund can be completed.

  • Gift Cards: If your organization wishes to sell gift cards, a GL Liability Code is recommended. This GL Liability Code holds the gift card revenue until the customer makes a purchase. When the gift card’s balance is used by the customer, the gift card revenue will move into the Revenue GL Code(s) that corresponds with their purchase.

Note:

If your operation lacks one of these codes, CivicPlus will create one for the purposes of configuration. These can be edited in the future based on your Finance Department’s preferences.

Accounting Method Request

Please let us know which General Ledger Accounting Method your Finance Department would like to use in your CivicPlus Recreation Management Software:

• Cash: Revenue for classes, activities, rentals, etc. are recognized when payment is made. If a partial payment is made, only the amount paid at that time is recognized revenue. Full revenue recognition is only realized once full payment is made. In short, revenue is recognized at the time of any payment.

  Note:

  If your department performs Cash Accounting, no further action is required.

• Accrual Accounting: Revenue for classes, activities, facilities, etc. will defer (be held in the deferred revenue account) until it is recognized (moved to the revenue account specific to the activity or facility) on the date of service.

  Note:

  All unpaid balances will be recorded in the Accounts Receivable account and total revenue will be deferred (not just what was paid) upon registration, sign-up, or rental. If your department performs Accrual Accounting, please continue reading.

• Modified Cash Accounting: Revenue for classes, activities, facilities, and more, will defer (be held in the deferred revenue account) until it is recognized (moved to the revenue account specific to the activity or facility) on the date of service. No A/R account is used to track outstanding balances and therefore will not be displayed on GL reports. Balances will be created on the user account and can be tracked via user accounts, A/R Center, or balance reports.

  Note:

  If your department performs Modified Cash, please continue reading.

Accrual/Modified Cash Information

If your Finance Department utilizes Accrual/Modified Cash Accounting, please provide the following additional General Ledger  Codes to your Project Manager:

• Account Receivable Account

  • Mandatory for Accrual Accounting

  • Not Applicable for Modified Cash

• Cash Account (Optional)

• Credit Deposits Account (Optional)

• Deferred Revenue Account (Mandatory)

• Payment Reversal Account (Optional)

Accrual Accounting GL Example

Modified Cash Accounting GL Example

Additional Notes on Deferring Revenue

• Payment Plans: Revenue generated from activities will be deferred until the first day of the session. This deferral also applies when opting for a payment plan. Consequently, even if payment installments are made after the session's start date, the official recognition of revenue for each payment will still be on the first day of the session, not the payment due date.

• Monthly Auto-Renew Memberships: When a customer registers for membership the revenue account will be immediately credited for the initial payment. In addition, Recreation Management will automatically debit the A/R account for next month’s payment. This creates the customer balance for the following month’s membership payment. To offset this debit, Rec will also credit the revenue account with the amount of the balance created. This will result in the initial month of the membership showing two payments have been made and each subsequent payment will be one month ahead. Month auto-renew/auto-billed memberships will never hit the deferred revenue account. This will not impact Modified Cash Users.

  • View the Initial Payment Account Example below.

• Facility Rentals Pending Staff Approval: When a customer requests a rental online, a balance is immediately created and tracked to the A/R account before staff approves/declines the rental. This A/R balance will be included in financial reports/extracts run on the day of the request. If a staff then declines the rental on a different day, it acts as a void and clears the original entry from the A/R account, rather than crediting the A/R account like a refund would. In light of this, staff would need to rerun any financial reports/exports to ensure your financial software does not show an A/R balance due for a rental that was declined. This will not impact Modified Cash Users.

Initial Payment Account Example

Accounting Process Map

The following map outlines the accounting process in the CivicRec solution. Use the tools in the bottom right corner to zoom in or open it in a new tab.

Table of Contents

• Financial Overview

  • General Ledger (GL) Configuration

    • Set GL Accounting Method

    • Create Initial Accounts

    • Assign Payment Types to Assets/Liability Codes

    • Assign GL Codes to Activities

    • Assign GL Codes to Facilities

    • Assign GL Codes to Point of Service (POS) Items

• Cash Accounting

  • Reporting

    • General Ledger Detail

    • Transaction Summary

    • Transaction Detail

    • Search for GL Codes in a Report

  • Validation, Balancing, and Troubleshooting

    • GL Report Validation

    • Troubleshoot Unitemized Transactions

    • Transactions Needing Attention/Items With GL Issues

    • Ensure Payment Transaction Totals Match GL Summary

    • Transaction Report and Payment Account Do Not Match

• Accrual Accounting

  • Reporting

    • Deferred Revenue Balances for a Time Period

    • Deferred Revenue Transactional Detail for a Time Period

    • Determine the Revenue Accounts Affected by Deferred Revenue

• Accounts Receivable (A/R)

  • Balance Your A/R Accounts

  • Reporting

    • A/R Activity Summary Report

    • A/R Activity Detail Report

    • Accounts Receivable Balance with Aging

    • Account Credits with Aging

    • Consolidated A/R Report

• User Credit Account