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General ledger journal entry export definitions

Practice CS includes a feature that enables you to export journal entries that record accounting activity and import them into Accounting CS. This topic details the difference between the cash basis and accrual method, and defines the account descriptions used on the journal entry.

Definitions

The following table defines each of the account assignments used in the journal entry export in Practice CS
Item
Details
Usual Type
Receipts
Normally a debit. Use as your "cash" account. There is currently no accommodation for the journal entry to flow to multiple bank accounts, even if you have set up multiple banks in Practice CS. You must pick a single GL account for the journal entry and then make an adjusting entry in Accounting CS to transfer funds between accounts.
Asset
Accounts Receivable
A/R is normally a debit entry, but will change from debit to credit from month to month as the amounts flowing into this category net to reduce the accumulated A/R.
Asset
Credit Memo
Normally a debit entry as it is the offset for the reduction in A/R.
Expense
Debit Memo
Normally a credit entry as it is the offset for the addition to A/R.
Revenue
Write Offs
Normally a credit entry as it is the offset for the addition to A/R.
Expense
Service Charge
Normally a credit entry.
Revenue
Revenue
Credit entry to your revenue/sales account.
Revenue
Sales / Service / Tax
Credit entry to sales tax payable account.
Liability
Process Billings
Entry to record progress billings
Revenue
Unapplied Receipts
Credit entry that acts like Revenue (above) to record a cash receipt that has not been applied yet, so that all money actually receipted in the system can be debited to cash account ("Receipts" above). Note that once the receipt is allocated, however, the results of the journal entry will change (it will move from the "general" revenue account here to the appropriate section of the journal entry).*
Revenue
* Unapplied Receipts Example: Record an unallocated receipt of $100 and the journal entry originally records that $100 as a credit to the Unapplied Receipts section. Once the receipt is allocated to an invoice that contained a $10 service charge and $5 sales tax, the JE will now show that $85 is allocated to "revenue", $10 "service charge", and $5 "sales tax".

Accrual vs. Cash Basis

The following table defines how journal entries are created under each accounting basis, and what happens in Practice CS to cause amounts to flow to the account assignments listed. (In the following table, "CCR" is a credit card return transaction and "NSF" is a nonsufficient funds reversal transaction.)
Description
Cash
Accrual
Receipts
Total amount of all receipts (whether applied or not) -NSF -CCR
Total amount of all receipts (whether applied or not) -NSF -CCR
Accounts Receiveable
N/A
Posted billings + sales tax +service charges +DM -CM/WO -receipts +NSF +CCR
CM / DM
The amount of receipts APPLIED to DM's, less any NSF and CCR amounts (only portion applied to DM's and assigned as "DM" originally is reversed by NSF/CCR).
The amount of DM/CM's (whether applied or not)
Service Charge
The amount of receipts APPLIED to SC's, less NSF/CCR portion.
The amount of your service charges
Write Offs
N/A
The amount of your write offs (whether applied or not)
Revenue
The amount of receipts APPLIED to invoices, less any NSF and CCR amounts (only portion applied to invoices and assigned as "revenue" originally is reversed by NSF/CCR).
The amount of your posted invoices (detailed based on method chosen). Example: if method is activity, the system looks up the Activity billed on any posted invoices for the period and records the amounts billed, broken down by that Activity's GL account number specified in Setup.
Sales / Service / Tax
The proportional** amount of receipts APPLIED to invoices with sales taxes, less NSF/CCR portion.
The total amount of sales tax billed for the period specified.
Progress Bills
The amount of receipts APPLIED to invoices with progress billings whether those progress bills have been "relieved" or not, less NSF/CCR portion. The GL account detail is based on the method chosen.
The amount of your UNRELIEVED progress billings for the period specified (detailed based on the method chosen).
Unapplied Receipts
The total amount of your UNAPPLIED receipts.
N/A (note that this line will not appear with the Accrual method)
**Proportional example: Sales taxes work differently using the cash method. The system won't record sales tax until you receipt the invoice that contained the sales tax. The liability isn't recorded immediately upon posting the invoice. So, if someone records a partial payment for an invoice that contained sales tax, Practice CS must record that same proportion of sales tax. Example: Invoice: $500. Sales Tax: $5. Receipt keyed for $101.00. Under cash method, the system will record $100 of Revenue and $1.00 of Sales Tax (because $101 is 20% of $505, the system applies the receipt to 20% of the sales tax).

This article applies to:

  • Product: Practice CS
  • Subject: Print