Lease Revenue/Recurring Recognition

1 Criteria
2 Salesforce Invoice Line Views
3 Setups
- 3.1 Company Setup
- 3.2 Account Posting Setup
- 3.3 Product
- 3.4 Salesforce Invoice Line
4 Create Amortizations Manually
- 4.1 Create Amortization from Salesforce Invoice Lines
- 4.2 Create Monthly Amortization Entries From Invoice Lines (Salesforce Invoice Line)
5 Create Amortizations Automatically
6 Cancel an Amortization
7 Manual Post & Un-Post Amortization GL Enries
8 Automatic Post Amortization GL Entries
9 Open Questions/To Dos
10 Reference

Criteria

For Accounts with Account Posting Group = Lease Revenue
For Salesforce Invoice Lines with Charge Type = Recurring

Salesforce Invoice Line Views

Field Name	Help

Field Name

Help

Ready for Amortization Calculation

Formula:

Account Posting Group = Lease Revenue
Order Record Type contains Rental
Invoice Status = ‘Posted’
Order Product != ''
Lease Amortization Line = ''
Product Family != ‘FRP’
(Charge Type = ‘Recurring' OR Product.Sub Category = ‘DISCOUNT’ OR 'DOWN_PAYMENT')

ISPICKVAL( blng__InvoiceLineStatus__c ,'Posted') 
&& NOT(ISBLANK( blng__OrderProduct__c ))
&& ISBLANK( Lease_Amortization_Line__c ) 
&& (
ISPICKVAL(blng__ChargeType__c,'Recurring') 
|| ISPICKVAL( blng__Product__r.Sub_Category__c, 'DISCOUNT') 
|| ISPICKVAL(blng__Product__r.Sub_Category__c, 'DOWN_PAYMENT')
)

Lease First SF Invoices Lines w/o AMT Lines

First Invoice = True
Lease Amortization Line = ‘'
Ready for Amortization Calculation = True

Lease First SF Invoices Lines with AMT Lines

First Invoice = True
Lease Amortization Line != ‘'

Lease Monthly SF Inv. Lines with AMT Lines

First Invoice = False
Lease Amortization Line != ‘'

Lease Monthly SF Inv. Lines w/o AMT Lines

First Invoice = False
Lease Amortization Line = ‘'
Ready for Amortization Calculation = True

Setups

Company Setup

Field Name	Help

Field Name	Help
Lease Receivable G/L Account	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

Field Name	Help
Interest Income G/L Account	Lookup(GL Account)
Write-Off G/L Account	Lookup(GL Account)
Account Sales Tax Payable	Lookup(GL Account)

Product

Field Name	Help

Field Name	Help
Sub Category	DISCOUNT, DOWN_PAYMENT

Salesforce Invoice Line

Field Name	Help

Field Name	Help
Ready for Amortization Calculation
Lease Amortization Line	Lookup(Lease Amortization Line)

Create Amortizations Manually

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
  - Use Country (Invoice__r.Currency), Account Posting Group (from Account), Charge Type, and Filter Replace Plan to look for Account Posting Setup, then populate these fields on the Amortization Schedule:
    - Account Posting Setup
    - Write-off GL Account (from Account Posting Setup)
    - Revenue GL Account (from Account Posting Setup)
    - Sales Tax GL Account (from Account Posting Setup)

Navigate to the Lease First SF Invoice Lines with AMT Lines list view.
Click on the Salesforce Invoice record to view the amortization entries generated for the invoice in the Lease Amortizations section.

Amortization Schedule

If there are multiple invoice lines with different Order Products, the system will create one lease amortization schedule per order product.
The principal amount P(LR Booked Amount) is calculated using this formula:

Variables:

P = LR Booked Amount

PMT = MRR Amount

r = Interest Rate/12

n = Term(months)

When processing the invoice lines, the system sorts them by the Start Date and then processes them 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

Lease Amortization

Field Name	Help

Field Name	Help
Customer	blng_Account__c
First Invoice	Salesforce Invoice > First Invoice = True
Fully Paid	Formula(Total LR Amount Paid = LR Booked Amount)
Interest Income GL Account
Lease Receivable GL Account
Write-Off GL Account
Revenue GL Account
Interest Rate	Company Default > Default Loan Interest Rate, Can be overwritten by Product > GF_Interest_Rate__c
Item	Invoice Line > Product > Item

LR Booked Amount	Calculated Principal Amount
MRR Amount	Invoice Line > Order Product > Billable Unit Price
Open Lines	Roll-Up Summary COUNT Lease Amortization Line (Post != True)
Order Product	Invoice Line > Order Product (One Order Product per Lease Amortization)
Original Ownership	Order Product > Original Ownership
Sales Tax GL Account
Starting Date	Invoice Line > Start Date
Term	Invoice > Invoice Line > Product > Product_Contract_Term__c
Total Discount	Roll-Up Summary (SUM Lease Amortization Line Lease: Discount Amount)
Total Interest Paid	Roll-Up Summary (SUM Lease Amortization Line Lease: Interest Amount)
Total Invoice Amount	Roll-Up Summary (SUM Lease Amortization Line Lease: Invoice Amount)
Total Lines	Roll-Up Summary COUNT Lease Amortization Line
Total LR Amount Paid	Roll-Up Summary (SUM Lease Amortization Line: Lease Receivable), Line Type = Monthly Entry
Down Payment Amount	Roll-Up Summary (SUM Lease Amortization Line Lease: Down Payment Amount)
Cancelled	True if Lease Amortization is canceled using the Cancel Lease button
Currency
GL Ledger	From order’s Warehouse

Lease Amortization Lines

Field Name	Help

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 Lease 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.

The system will search for existing Lease Amortization records using the Order Product associated with the Salesforce Invoice Line. If the Order Product is linked to a Lease Amortization record, the routine will utilize the data from the Salesforce Invoice Line to generate a Monthly Amortization Entry under the corresponding Lease Amortization.

If Lease Amortization is not found, an error message will be written on the invoice line, letting the user know to create an amortization schedule for that invoice line.

Monthly Amortization Line Entry Calculation

When processing the invoice lines, the system sorts them by the Start Date and then processes them 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

Create Amortizations Automatically

Use the Hourly routine configured on the Job Scheduler, with Job name = “Create Lease Amortizations” and Class name GF_CreateLeaseAmortizationSched
All errors will be displayed in the field Error Message.
Batch size = 1
Need to create a view to display the error.

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.

Manual Post & Un-Post Amortization GL Enries

Lease Amortization Line List Views

Open

Filter:

Posted = False

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.

G/L Entries Examples

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.

The system will create reverse G/L entries if un-post is successfully run.
- Sample reverse entries:

Automatic Post Amortization GL Entries

Use the Hourly routine configured on the Job Scheduler, with Job name = “Post Amortization GL Entries” and Class name GF_PostAmortizationEntriesSched
All errors will be displayed in the field Error Message.
Batch size = 1
Need to create a view to display the error.

Open Questions/To Dos

Work with Umair to create and test different test cases:
1. Salesforce Invoice with one product
2. Salesforce Invoice with multiple products.
3. Salesforce Invoice with discount
4. Salesforce Invoice with sales tax (Texas charges Sales Tax on the first invoice?)
  1. SW: Please send some examples.
5. Salesforce invoice with downpayment
  1. SW: Need the Home Water team to create test invoices with a down payment line
6. Excel Sheet with Examples
  1. https://microdatanet1988.sharepoint.com/:x:/s/Clients/ES-9cKPQSJtKjv2iacvcnsoBie47orn_Gk8W_rOBTOMsPw?e=shJ7lo
Go Live, how should we handle open invoices?
1. 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!!!

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