Accounting Transactions

Transactions are created for Payments, Invoicing (sales transactions), Adjustments, etc. and all transactions are associated with “orders”, with the exception of prepayments. Memo transactions, and later for non-receivables, where no invoice number yet exists, transactions are associated with order numbers and invoice numbers.

Proforma vs. Active Sales Transactions

It is important to understand that in Personify360, a proforma order can be created which does NOT have any financial transactions associated with it. It is merely a quote for services and does not represent any product to ship or service to be provided.

When the order is changed from proforma to active, this means that the product or service is to be delivered (i.e. there is a commitment from the customer to purchase this product or service).

For products where nothing is to be physically delivered (membership, meetings, subscriptions, etc.), the invoicing is done immediately (i.e. the sales transaction is created immediately).

For products that are to be delivered through the typical shipping process (inventoried products), invoicing can only take place after actual shipping. Therefore, these may be active orders but not have an invoice or active sales transaction until the shipping process is complete. They do, however, have a proforma sales transaction (i.e., an FAR_Txn record without any FAR_Txn_Detail distribution records). These, therefore, do not have any affect on the GL. Advertising orders work in a similar way since invoicing is done only after publication of the ad.

Transaction Types

Refer to the following table for the transaction type codes and their descriptions.

Transaction Type	Code	Description
Receipt	1	Receipts are shown as negative numbers. They reduce the balance on an order.
Voucher/Refund	2	Vouchers are refunds shown as positive numbers. They increase the balance on an order.
Receipt Transfer	3	These happen in pairs, one for each line item involved in the receipt transfer. The base amount will show a positive number on the line item from where the receipt was removed, and a negative number from where the receipt was moved (decreases the order balance just as a receipt would.)
Sales	4	Sales transactions are shown as positive numbers. They increase the balance on an order.
Write-off	5	This writes off a receivable amount, either positive or negative. If writing off a debit balance, there is a credit to accounts receivable (AR) and a debit to write-off. If writing off a credit balance, there is a debit to AR and a credit to write-off.
Adjustment	6	An adjustment is a debit/credit memo. The sign on the number depends on whether it increases or decreases the balance on an order. For example, if the adjustment reduces the price, it is shown as a negative number.
Revenue Recognition	7	This does not affect the balance of an order. It just moves money between deferred revenue and recognized revenue accounts. Therefore, the amount on the transaction is zero.
Memo Transaction	8	This is a placeholder and never goes to the General Ledger (GL). It is not counted in the calculation of an order balance. As of 7.5.2, if there is a price change on an order line with no net accounting change, the system will create a Type 8 memo transactions with Far_Txn.COMMENTS set to describe the reason for the price change. In other words, if the price is being changed such that the base total is going negative and system is updating the base adjustment to avoid this, the system will create the Type 8 memo transaction. For example, let's say we have an invoiced membership order line where a 100% price reduction was made. The Type 4 is $120, and the Type 6 is -$120. Then, the membership end date is updated, which causes the order line amounts to be pro-rated, resulting in order line base unit price to be changed from $120 to $60, base adjustment to be changed from -$120 to -$60, and base total amount stays as $0, so there is no change in the transactions. This causes a situation where the order line amounts are not in sync with the Far_Txn amounts. This is fine from an accounting perspective, because AR and Revenue net to zero. However, from a data perspective the user has no clue about what happened and why the order line amounts are different than the txn amounts. Therefore, the system will create a Type 8 memo transaction for $0 to provide this information.
Deferred Receipt	9	These are special transactions because they carry no transaction detail and are not sent to the GL. They indicate that there is a scheduled payment plan. The amount will show as a negative number like a real receipt so that the balance will show how much is currently due on an order.
Non-Receivable	0	These transactions are passed to the GL, but are not associated with an order in Personify360.
Journal Entry	J	These are any transaction that goes against two accounts. It is not associated with an order. For example, the inventory number was changed and a write-off account was created.

Transaction Function Codes

Transaction Function Codes are associated with each debit and credit created in a transaction and describe how the account is being used within a transaction. This is particularly important when a single account number is used in various ways in the system, e.g. when the same account might be used for both a revenue account and a discount account for the same product.

Various tables provide the accounts and their functions:

· PRODUCT_ACCOUNT: The accounts are defined as to their function for the product, the logic that chooses the accounts will then assign the proper function code to the far_txn_Detail record.

· FAR_BATCH_DETAIL provides accounts for for receipt transactions.

· PRODUCT_REVENUE_DISTRIBUTION provides accounts and functions for sales transactions.

Code	Comments
CASH	Used for the debit of a receipt transaction or a credit for a receipt reversal.
AR	Receipt = Credit Receipt Reversal = Debit Sales = Debit Adjustment = Either a debit or credit, depending on the direction of the adjustment.
DISCOUNT
DEF_DISCOUNT
SHIPPING
REVENUE
WRITE-OFF
TAX
REFUND
XFR	Used in transferring receipts from one order line to another.
FNDASSET
TRADE	Used in special transactions for the Exhibition subsystem for trade-for-services.
SPACECREDIT	Used in special transactions for the Exhibition subsystem.
DEFSHIPPING
AG_DEF_DISCOUNT	Agency deferred discount.
AG_DISCOUNT	Agency discount.
CANCELLATION
DEFERRED REVENUE
DUE TO	Used for intercompany transactions.
DUE FROM	Used for intercompany transactions.
INVENTORY	Used by non-receivable transactions and by Cost of Goods Sold (COGS) transactions.
INVADJUST	Used by non-receivables transactions.

Also in this section:

· Overview: Accounting

· Accessing the Accounting Central Launch Screen

· System Types and Codes

· System Parameters

· Round-to-Even