Account Codes and Ledger Report

 

Overview

If you are using the Fully Uplifted tier of Uplifter, you can take advantage of the Uplifter Ledger Account features. All the information you may want to transfer to another accounting program can be found in the invoices that you process in Uplifter. To simplify this process, whenever an action is completed on an invoice, the details of that transaction can record to Uplifter's ledger report. You can setup Ledger Account codes in Uplifter to match the ledger accounts you have setup in your according accounting system to simplify your process. This will allow you to export a chronological report of all transactions that occurred during a specific time period and enter these same transactions (either individually or on aggregate) into your Accounting system.

Before you use this feature, PLEASE BE SURE YOU READ THIS ARTICLE CAREFULLY so you are aware of how Uplifter will record transactions to your ledger report. Each Ledger Account code type has differing rules on how tags and ledger account assignment will take place. Once a line has been recorded to your ledger, it cannot be edited. This type of immutable record keeping will provide bookkeepers, treasurers and accountants the clarity of any transactions that occur within Uplifter that maybe required to audit transactions that occur in Uplifter.

 

Background

Recorded Account Types

        • Assets - This is any invoice payment that you receive and mark as Paid
        • Receivables – This is a type of asset, but an asset that you are planning on receiving at a later date – so any invoice payments that are marked as “Pending” or “Undeposited”
        • Revenues – These are the amounts on your invoices describing what you have sold, or “Invoice Items” (basically anything ABOVE your subtotal line)
        • Liabilities – This is any amount that Uplifter generates that you owe to another party. Currently the only two types of liabilities recorded are taxes and gift certificates 

The Uplifter ledger report does not report balances on ledger accounts as these balances may change for other reasons outside of your Uplifter transactions (ie, you may have withdrawn money from the bank account you deposited your cheques and cash into or made a tax remittance to a governing body).

 

Accounting Crash Course

As per general accounting principles, all financial transactions are typically recorded as debits (the “left”) or credits (the “right”). Based on general accounting, any financial transaction should result in all amounts on the left equaling all amounts on the right.

        • Asset and Receivable amounts are increased by recording an amount in the debit column. If you are decreasing one of these accounts, a positive value is recorded in the credit column.
        • Revenue and Liability amounts are increased by recording an amount in the credit column. If you are decreasing one of these accounts, a positive value is recorded in the debit column.

Uplifter's Ledger Report will allow you to see updates to any of your asset, receivable, revenue and liability accounts based on a series of debits and according credits. 

 

How Debits And Credits Are Recorded

Uplifter will record to your ledger whenever an update that relates to the financial details on a completed invoice are performed or when gift certificates are generated. So, in the case where someone completes a registration on your Uplifter site, Uplifter will record the following transactions:

        • a credit to any according Revenue accounts based on what you have sold in the form of program registrations, programs or subscriptions
        • a debit to any according Revenue accounts based on any discounts that may have been applied to your invoice items
        • a credit to any according Liability accounts attached to any taxes you may collect against your invoice
        • a debit to any Asset accounts where the according payments against the items you have collected revenue for above are marked as paid 
        • a debit to any Receivable accounts where the according payments against the items you have collected revenue for above are marked as pending (to be paid at a later date)
        • a debit to any Liability accounts attached to any gift certificates that may have been used on the invoice

When installment payments are processed and changed from pending to paid, Uplifter records the following transaction:

        • a credit to any according Receivable accounts to reduce the amount that was owed to you
        • a debit to the Asset account that the payment was made against

 

Uplifter's Ledger Account features provides a club with as much control as is preferred to record to the according accounts. If you are an organization that would like to record to a single Asset, Receivable, Revenue and Liability account, you can certainly keep elements simply. As soon as you've added these accounts to your Ledger Accounts page and you activate your Ledger, all transactions will immediately begin recording to these according accounts and begin back-populating your ledger to the best of Uplifter's ability at the time of activation.

 

Before You Begin

Before you enable the Ledger Accounts feature within Uplifter, you'll want to review with your accountant, bookkeeper or treasurer how you would like Uplifter to populate your ledger account. This will require them to look at your according accounting system and find all the codes where they expect transactions to populate. Each organization will have completely different requirements and needs, so plan carefully based on your own needs. You may want to record cheque payments separate from your credit card payments. You may want to record revenues based on generic program registrations, products and subscriptions, or  you may want to specify accounts at a category, category level or even specific program or product level. You may also want to record discounts or adjustments to separate revenue accounts for greater visibility in your accounting system.

You can update your Ledger Accounts at any time. Doing so will affect any future transactions after you've updated your accounts, but will not affect ledger lines retroactively.

Uplifter will not allow you to begin populating your ledger lines until you specify at least one default account that can be used for each of your:

        • Asset Accounts
        • Receivable Accounts
        • Revenue Accounts
        • Liability Accounts

This will ensure that any transactions that occur on your Uplifter site will balance with the according debits and credits.

Take the time to setup your accounts and review them carefully. You do not need to activate your ledger until you are sure that the accounts have been saved in the way you expect.

 

Setting up your Ledger Accounts

Setup Default Ledger Accounts

Define a default account for each type of account provided in Uplifter. Once activated, Uplifter will need to record a ledger line to a revenue account for all your invoice lines, an asset account to any paid transactions, a receivables account to any pending transactions and a liability account for any taxes recorded or gift certificate updates. So, if for some reason you may have omitted any tags based on your requirements, Uplifter will then record the according default account to ensure your transactions balance.

Uplifter will prevent you from saving the page unless you provide an Account Code and Account Name for each account you create. You will also not be allowed to activate your ledger until you have saved at least one default account for each account category. Specify your default account for each category by selecting the radio button on the left of the account.

Note that if you tag any options to your default account for any categories, the account will still behave as a default account and record any transactions that don't fall under any additional tagging.

Setup Any Specific Asset Accounts

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You can create asset accounts for any payment methods you support on your Uplifter site. If you would like all your payments to record under a single account, you can leave this as your default account that you've setup above. You can specify as many accounts as you like and tag as many payment methods as you like to any of your non default accounts. 

Setup Any Specific Receivable Accounts

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Most organizations may be fine with having a single receivables account. Some may want to record their credit card receivables separately from their other receivables for cash flowing purposes or to help manage a sense of your credit card fees that maybe levied in future dates upon the payment of those fees. 

When marking a payment from pending to paid, the according Receivable account will be be credited and the according Asset account would be debited reflecting the movement from a receivable to an amount paid. Note that this transaction would occur based on how the accounts are setup at the time that transaction is recorded. So, for example, if you were to create only a single default Receivables account, and process a number of invoices (or back-populate your previous invoices), all your pending payments would be recorded into this generic receivables account. If you decide, after the ledger has been populated for some time, that you would like to specify a separate credit card receivable accounts, activating the account does not automatically transfer your credit card receivables over to the according receivable account. However, upon subsequent transactions where pending credit card transactions are set to paid, the ledger would record a credit against the credit card account event though it may have recorded the original debit against the default receivable account.

Setup Any Specific Revenue Accounts

Default Revenue Type Tags

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Revenue accounts provide a fair amount more flexibility in terms of default accounts. Not only can you specify a default catch all account for any Revenues not tagged elsewhere, but you can setup a number of tiered defaults. This will provide a cascading default behaviour if you tag specific revenues to, for example categories or category levels, and then in future add some categories or category levels to your Uplifter site but forget to add those tags to your Ledger Accounts. For Revenue Accounts, over and above your default account, you can also specify a default account for:

        • any Program Revenues
        • any Product Revenues
        • any Subscription Revenues
        • any positive Revenues based on Custom Lines created in an invoice
        • any negative Revenues based on Custom Lines created in an invoice
        • any charged Item Adjustments applied to an invoice line
        • any discounted Item Adjustments applied to any invoice line (this includes applied discounts)

Unless you plan of recording your Revenues in a very basic manner such as a single revenue account for all amounts charged, the Uplifter team highly recommends that you setup accounts that tag each of these default revenue types. You can choose to group them for simplicity (ie, have both positive and negative Custom Line revenues attached to the same account code), but tagging each of these default revenue types will ensure that regardless of the programs, products, categories and category levels you may create in future, the revenues will at last record to some known accounts.

Specific Revenue Account Tags

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Outside of the default Revenue types above, you can optionally tag Revenue accounts to specific instances of:

        • discounts
        • programs, products or subscriptions
        • category levels
        • categories

Revenue Tag Escalation

Uplifter will attempt to application the revenue amounts of the invoice item by looking for the more specific associations first, then falling back to the more general options to determine which ledger account to record the revenues within. For example, with a specific line item on an invoice, Uplifter would first check if the specific product, program or subscription is tagged to an account code. If not, then it will see if the invoice item's category level and then category is tagged as an account code. If no tags exist at that level, then Uplifter will check for a default revenue account based on the type of invoice line type (program, product or subscriptions). If no default revenue account exists, then Uplifter would finally assign the ledger line to the default catch-all revenue account code.

Product/Program> Category Level > Category > Default Revenue Type > Default Revenue Account

A similar escalation will occur when recording invoice item adjustments. For any invoice item adjustment, Uplifter will first look to see if the invoice item adjustment applies to a specific discount that might be tagged in a revenue account. If not found, then Uplifter would check for the default item adjustment type and the if not found, Uplifter would assign the transaction to the default revenue account.

Discount > Default Revenue Type > Default Revenue Account

 

Setup Any Specific Liability Accounts

liabilities-example.png

Uplifter stores two types of Liabilities, taxes and gift certificates. If you would like to track transactions to differing tax codes separate, in addition to your default liability account, you should specify a separate account code for each tax code that Uplifter charges to allow for easy posting to your accounting software.

You can create a liability account for "Default for Gift Certificates" and "Default for Gift Certificate Payments / Refunds". Both of these will be important for your reconciliation. Please be sure to use both options and assign them to different accounts!

Uplifter can generate two separate types of Ledger Lines in association with Gift Certificates or credits. Both should be utilized and assigned to different accounts. You may want to track these under separate account codes or a single account code. Gift Certificates that are generated from the Gift Certificate page independent of any revenue refund can be captured under "Default for Gift Certificates". Gift Certificates that are associated with a payment transaction on the invoice edit or checkout pages will always be debited or credited from the "Default for Gift Certificate Payments / Refunds". 

Though ultimately, you will likely record all gift certificates under a single liability account in your accounting software, being able to track gift certificate generation can be done by separating the default liability accounts for gift certificates in this manner. Note that even though upon generation of a gift certificate on the gift certificate page, Uplifter will credit the account tagged by "Default for Gift Certificates", regardless of which account the gift certificate was credited against, the usage of the gift certificate on an invoice will be debited against the account tagged by "Default for Gift Certificate Payments / Refunds". These two accounts are meant to be tracked in an aggregate fashion; however, the Uplifter software provides additional granularity in cases where you might want to track the gift certificate amounts were generated separately. 

 

Activate Your Ledger

Once you've added all of your ledger accounts you can activate your ledger. Before doing so, ensure you have reviewed all of your ledger accounts and how they've been defined. If you are unsure based on the documentation above, please feel free to contact us to ask us questions about how ledger lines maybe populated based on your created ledger accounts.

As soon as you check "Activate Ledger" and click "Save", Uplifter will begin going through all of your organizations previously completed invoices and generate the ledger lines based on the state of the invoices at the time of activation. This process may take some time, but rest assured, it will slowly populate in the background as you continue to work with Uplifter. As soon as you have activated your ledger, any transactions occurring after the fact will also be immediately recorded to the ledger as well.

Note that the ledger will be back-populated with as many details as is currently available in Uplifter and be a reflection of Uplifter at the current time. Installments that are currently paid will only be recorded in the asset lines and not a reflection of the original receivable record in concert with the credit to your receivable and debit to your asset account to indicate the then future payment. 

Before activating your report, you may want to coordinate with a member on your team that manages the transfer of data to your accounting software. They'll want to determine what amounts have already been recorded into your accounting software to know what new records from the ledger report can be used on a go-forward basis.

 

Ledger Report

As your ledger populates, you will be able to view the contents of your ledger by navigating to "Reports" > "Ledger Report". You can use this report to periodically determine what transactions need to be recorded into your accounting system.

 

 

 

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