Conventions tracking

[scorpion09]

Hi
every year, our company sign conventions with important customers,these conventions allow these customers to pay a lump ammount at the end of year against given products. the products are factured every month, but the payment is at the end of year
these conventions are not accounted, we account only invoices.
my trouble is that i want to track these conventions, i want to have at every moment the balance of these conventions.
so how can i do this.
best regards[:)]

[tgs100]

You may try the below one.

Setups
=====
1. Create a transaction type with class 'Guarantee' and receivable account and unearned revenue account as same account.

Transactions
========
1. Create a guarantee transaction using the newly defined guarantee transaction type for the convention (say for, 50000) for each customer.
The accounting entries will be

Receivable Account (Guarantee) - Dr - 50000
To Unearned Revenue - 50000

As both the above accounts are same (defined in the transaction type), the net effect will be zero.

Now if you run 'Commitment report' for the customer, the balance will be 50000.

2. Create an invoice for the same customer (say for, 5000) and attach the guarantee transaction in the commitment field.

The accounting entries will be

Receivable - Dr - 5000
To Revenue - 5000

Unearned Revenue - Dr - 5000
To Receivable Account (Guarantee) - Dr - 5000
(As both these accounts are same, the net effect will be zero)

If you run commitment report now, the balance commitment amount will be 45000.

You can do receipt, remittance and clearing as usual for the invoice.

Assumptions
========
1. The auto accounting rules for receivable and unearned revenue is set to transaction type
2. No need to track the accounting for commitment (conventions) in GL

Cheers,
Saravanan TG

[scorpion09]

Hi
thanks lot, i've understand well, how to use guarantees, but i've just a little problem, when i've created a guarantee transaction, i can't have the Unearned Revenue in line distributions, i've also uploaded a screenshot.
Best Regards

[tgs100]

The accounting class will be 'Revenue' only. The GL account will pick the account combination from the unearned revenue field defined in the transaction type (if autoaccounting is set accordingly).

So there is no issue in your case.

Cheers,
Saravanan TG

[scorpion09]

Hi
thanks lot
Best Regards

[scorpion09]

Hi
plz [:)]what is the difference between Deposit and guarantee.
Regards [:)]

[tgs100]

Deposit
=====
You will create a deposit when you receive the advance amount from the customer. You will create the deposit transaction, receipt (and optionally remittance and clearing). After you deliver the goods, you will create AR Invoice and then apply against the deposit. The invoice balance will be reduced to that extent.

Guarantee
=======
You will only get a guarantee from the customer saying that the customer will lift material worth of some amount. You will not receive the money from the customer. Using guarantee, you can track how much the customer agreed to buy the goods and how much he has actually bought. When the guarantee is attached in the invoice, the invoice balance will not come down.

The accounting entries in both the cases are different.

Cheers,
Saravanan

[scorpion09]

thanks lot
Best Regards