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Criteria
Use Salesforce Invoice Line view to create Amortization schedules to record revenue. Do not deduct inventory again.
For Order with Record Type = Tech Install/Self Install - Rental
Product Family on Salesforce Invoice Line != FRP
Accounting Posting Group = Lease Revenue
Order Record Type contains Rental. // better to use this filter to separate records from Upfront
Do not use below. Discount and Down Payment have Charge Type = One Time, which might be confused with Upfront Payment.
(Charge Type = ‘Recurring' OR Product.Sub Category = ‘DISCOUNT’ OR 'DOWN_PAYMENT')
Amortization Line is not blank
Invoice Status = Posted
Populate Amortization Line on Invoice Lines
Look at the Account Posting Group setup and Sales Tax setup, based on Country,
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Setups
Company Setup
Field Name | Help |
|---|---|
Lease Receivable G/L Account | Lookup(GL Account) |
Account Sales Tax Payable | Lookup(GL Account) |
Default Loan Interest Rate | Default Interest Rate(%) uses in the amoritization calculation, unless overwritten by Product2.GF_Interest_Rate__c |
Account Posting Setup
Field Name | Help |
|---|---|
Interest Income G/L Account | Lookup(GL Account) |
Write-Off G/L Account | Lookup(GL Account) |
Product
Field Name | Help |
|---|---|
Sub Category | DISCOUNT, DOWN_PAYMENT |
Salesforce Invoice Line
Field Name | Help | ||
|---|---|---|---|
Ready for Amortization Calculation | Formula:
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Lease Amortization Line | Lookup(Lease Amortization Line) |
Create Amortization from Salesforce Invoice Lines
Salesforce Invoice Line List Views
First SF Invoices Lines w/o AMT Lines
Filters:
First Invoice = True
Lease Amortization Line = ‘'
Ready for Amortization Calculation = True
...
Monthly SF Inv. Lines w/o AMT Lines
Filters:
First Invoice = False
Lease Amortization Line = ‘'
Ready for Amortization Calculation = True
Create Amortization from Salesforce Invoice Lines
Navigate to Salesforce Invoice Line - First SF Invoice Lines w/o AMT Lines view
Select the lines you want to create Amortization Entries for.
Click the Create Amortization Entries button
...
When processing the invoice lines, the system will sort them by the Start Date. Then, it’ll process the invoice lines sequentially.
The system will create at least two Lease Amortization Lines entries from First Invoice Line:
Initial Entry
Lease Receivable = LR Booked Amount
Monthly Entry
It will calculate the Remaining Principal Amount = LR Booked Amount - Total LR Amount Paid
Interest Amount = Remaining Principal Amount * Interest Rate / 100 / 12
Lease Receivable = MRR Amount - Interest Amount
Tax = Salesforce Invoice Line Tax Amount
Invoice Amount = Salesforce Invoice Line Total Amount
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Field Name | Help |
|---|---|
Type | INITIAL_ENTRY, MONTHLY_ENTRY,DOWN_PAYMENT,DISCOUNT,CANCELLATION |
Invoice Date | SF Invoice Posting Date |
Invoice Amount | SF Invoice Line: TotalAmount. (Include Tax) |
Lease Receivable | |
MRR Amount | Monthly Payment Amount |
Posted | True if the line is posted |
SF Invoice Line Calculated Qty. | SF Invoice Line: Calcualted Quantity |
Tax Amount | SF Invoice Line: TaxAmount |
Interest Amount | |
Discount Amount | |
Down Payment Amount | |
SF Sales Invoice | |
SF Sales Invoice Line | |
Currency |
Create Monthly Amortization Entries From Invoice Lines (Salesforce Invoice Line)
Navigate to the Monthly SF Inv. Lines w/o AMT Lines Invoice Line list view.
Select the Invoice Lines for which you want to create monthly amortization entries.
Click the Create Amortization Entries button to initiate the process.
The system will search for exiting Lease Amortization using Salesforce Invoice Line’s Order Product, if the Order Product has a Lease Amortization record, then the routine will use the Salesforce Invoice Line data to create a Monthly Amortization Entry under the linked Lease Amortization.
...
When processing the invoice lines, the system will sort them by the Start Date. Then, it’ll process the invoice lines sequentially.
It will calculate the Remaining Principal Amount = LR Booked Amount - Total LR Amount Paid
Monthly Entry
Interest Amount = Remaining Principal Amount * Interest Rate / 100 / 12
Lease Receivable = MRR Amount - Interest Amount
Cancel an Amortization
Navigate to the Lease Amortization record that you want to cancel.
Click the Cancel Lease button to initiate the process.
A cancellation entry will be inserted into the amortization schedule.
Lease Receivable = LR Booked Amount - Total LR Amount Paid
Invoice Date = Today()
The system will flag the amortization as canceled.
Post & Un-Post Amortization
Lease Amortization Line List Views
| Info |
|---|
Open Filter: Posted = False |
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| Info |
|---|
Post Filter: Posted = True |
How to Post Amortization Entries
Navigate to the Lease Amortization Line - Open list view.
Select entries and then click the Post button to initiate the posting process.
...
Lease Amortization Line Type = Initial Entry
Debit Lease Receivable Account
Credit Product Revenue Account
Lease Amortization Line Type = Monthly Entry
Debit Accounts Receivable (Invoice Amount $18.35)
Credit Lease Receivable Account (Lease Receivable $11.40)
Credit Interest Income Account (Interest Amount $5.55)
Credit Sales Tax Payable Account (Sales Tax $1.40)
Lease Amortization Line Type = Cancellation
Debit Write-off Account
Credit Lease Receivable Account
Lease Amortization Line Type = Discount
Debit Discount
Debit Sales Tax Payable
Credit Accounts Receivable
Lease Amortization Line Type = Down Payment
Debit Accounts Receivable
Credit Lease Receivable
How to Un-Post Amortization Entries
Navigate to the Lease Amortization Line - Posted list view.
Select entries and then click the Un-Post button to un-post.
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The system will create reverse G/L entries if un-post is successfully run.
Sample reverse entries:
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Open Questions/To Dos
Work with Umair to create and test different test cases:
Salesforce Invoice with one product
Salesforce Invoice with multiple products.
Salesforce Invoice with discount
Salesforce Invoice with sales tax (Texas charges Sales Tax on the first invoice?)
SW: Please send some examples.
Salesforce invoice with downpayment
SW: Need the Home Water team to create test invoices with a down payment line
Excel Sheet with Examples
GL Accounts for Posting?
GL Ledger - Should go to Salesforce Invoice__r.Salesforce Order__r.Warehouse__r.GL_Ledger__c
Should add GL Ledger to the Amortization Schedule
SW: Currently, the System is assigning GL Ledger to GL Entry by CurrencyCode.
Go Live, how should we handle open invoices?
if we mass-create GF invoices and Amortization entries for existing Salesforce Invoices will it cause GL issues? such as double count?
The current First Invoice flag does not work on Renewed subscriptions, it does not flag the First Invoice of the renewed subscription!!!
Reference
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