How do I create Accounting Rules in Invoice?

Updated on March 18, 2018 11:31PM by Admin


You can customize Accounting rules in Settings. Use accounting rules to determine revenue recognition schedules for your invoice lines. You can assign a different accounting rule to each invoice line. It is similar to workflow feature. The only difference being that you need to create a standard template for the memo  and that should be posted on to each journal entry.

Lets go through the following steps to understand better.

To Create Accounting Rules in Invoices

  1. Log in and access Invoices App from universal navigation menu bar.
  2. Click on “More” icon and select “Settings” option.
  3. Click on "Settings -> Accounting Rules -> Invoice" from left navigational panel.
    Accounting Rule
  4. Toggle on "Enabled" button and click on "Create" blue button.
  5. You can view the create page where you can define the following:
    • Name: Name of the accounting rule.
    • Memo: Financial description which should be displayed on Ledger.
    • Event: It specifies when the accounting rules should be executed while creating the expense report or while updating the expense report by checking on radio button "Create" and "Update" respectively.
    • Priority Score:Rank of the accounting rules which is defined by this priority number.
    • Period: Select the particular period from the drop down at which time the journal should be created on ledger. For Instance : Event as "Update", Priority score as "10", Period as "Approved on".
  6. Define the criteria which is the space where the condition can be defined by selecting attributes and its equivalent values. This example illustrates the criteria and actions as shown below:
    Set 1
    Group 1

  7. Under the Journal session you can define the "Journal Type" and "Journal Entries".
  8. Select the type from "Journal type" drop down under which invoices  with satisfied criteria gets created on ledger. For Instance: Accrual
  9. Journal Entries allows to add single and multiple entries along with the consolidated and reversal options
    • By enabling "Consolidated entries before post", if the multiple entries have same debit or credit type it will be consolidated in a single line.
    • By enabling "Reverse all previous journal entries" (Note: The event check box should in "Updated" option), reverse journals will be created along with original journal record.
      Journal details
  10. Underline level of journal session enter the required details like Level, Value, Attribute and then line level sessions like Credit type, Debit type, Credit account and Debit account.
  11. Click on "Create" blue button.

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