Using Storman for Accrual Accounting
Posted by Cameron Telfer, Last modified by Ngatokorua Elikana on 05 October 2016 12:58 PM

Storman recognises Debtors on an accruals basis. When rent is billed to a customers account, both the Debtor and the Income is recognised in the month when the charge is made. The corresponding journal entry would therefore be;

DR     Debtors                                                                   XXX

Cr           Rent Income                                                                   XXX

(to recognise the rent billed to customer)

 

When a customer pays the balance of their account, this is subtracted from the Debtors balance and the payment increases the bank account by the same amount.

DR     Bank                                                                   XXX

Cr           Debtors                                                                      XXX

(for receipt of payment from customer)

 

These journal entries can be processed manually at the end of each month using certain Storman reports to determine what amounts to use for the month. This article describes how to print these reports and then create the general ledger entries.

Preparing the General Ledger Entries

The following steps need to be completed:

First Print out the Customer Balances report and check that the total of the column headed Prev Mth Bal agrees with the closing receivables amount in the general ledger for the previous month. If it does agree then continue with step 1. If it doesn't then you will need to verify why the opening balance has changed from the previous month.

Most often the changes would be a result of an operator making changes to a customers transactions for the previous month after the month had been closed off and report printed .

  1. Print out the Income Charged Report. From the Income Charged report create a general journal that will recognise the debtor (total Income Charged per the report) and revenue (this can allocated to different revenue accounts depending on the analysis codes affected). This journal should be dated for the month of the report.
  2. Print out the Summary of Cash Received Report (more on this: #RPTSMCR01). This should be the same as what was banked during the course of the month. The only differences will be for Deposits not yet Credited as detailed on the lines of the report called "Last Mth Banked This Mth" and "This Mth not yet Banked".
  3. Print the Prepaid Report.  This will give you the amount of revenue that does not relate to the current month. This will need to be offset against a prepaid current liability account as part of closing off the month. Note a reversing journal entry should be made on the first day of the following general ledger month.
  4. Note that the Schedule of Deposits Held report total should agree with the general ledger account for Deposits (that is the account you would have assigned the deposit analysis code to in step 1).

The above steps reconcile the bank, receivables and deposits account to agree with Storman.

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