Example of Invoices Details on FlowRev:
How to ensure that revenue entries are synced to Xero:
Where the monthly values show with ablue background, this means that the journals have not been synced to Xero.
How to reverse monthly journals on Xero:
NB: It is not possible to delete a journal that has been posted to Xero. Therefore an additional journal will need to be posted following the steps below to reverse out a posted journal.
Recognition definitions:
The invoice service start and end dates, in conjunction with the item recognition parameters set on the Items page, lets Flowrev identify and process the invoice line items that are to be deferred from the invoice date, and the date or duration over which each is to be recognized.
# | Recognition* | Description |
1 | ONCE | When the invoice date is different from its service start date the full amount of the invoice line item will be deferred on the invoice date, and recognized on the service start date. The service end date is not relevant, nor is the recognition computation type (Per Diem, ...). |
2 | MONTHLY | When the duration of an invoice spans across multiple months, the full amount of the invoice line item will be deferred on the invoice date and a recognition schedule created for the end of each month within the duration defined by the invoice service start and end dates. If the end date is prior to the last day of a month, then the recognition for that last month occurs on the service end date (and not on the last day of the month). |
3 | QUARTERLY | When the duration of an invoice spans across multiple fiscal quarters, the full amount of the invoice line item is deferred on the invoice date, and recognized at the end of each quarter (with the last recognition happening on the service end date if it is prior to the last day of the quarter). |
4 | YEARLY | When the duration of an invoice spans across multiple fiscal years, the full amount of the invoice line item is deferred on the invoice date, and recognized at the end date of each fiscal year within the invoice duration. |
5 | NONE | No recognition schedule is ever created for items / invoice / bill lines set to None. |
*NB: For NR invoices, ensure that the option ‘None’ is selected for the revenue recognition. This ensures that the recognition date is the date that the invoice was issued.
Accrued Liabilities
Step | Description |
1 | Accrued Liabilities to be posted directly to Xero and then adjusted monthly based on manual adjustment provided to Joanna. |
2 |
*NB: For NR invoices, ensure that the option ‘None’ is selected for the revenue recognition. This ensures that the recognition date is the date that the invoice was issued.
Aged debt slide in Board pack
- 1) Renewal opportunities to be entered into Hubspot. Need to mark as a renewal in the system. Can set them up as a ‘recurring renewal’ so when you close the existing renewal it automatically sets up a new renewal. Assign all of them a ‘create’ sales stage. Then move to prove when closed out. When they are renewed, you would mark as ‘closed won’. Can then get a bespoke report for the purpose of the Board pack slide
- 2) Get a report from Xero which shows any aged debtors. All set up as 30 days payments terms.
Within 3 working days of each month end:
- Update Hubspot for recurring and NR opportunities
- Reconcile cash in Xero
- PL to date, Outturn and 52 week forecast to stay in Ccube master. All else to come from Xero and Hubspot
ISSUES TO RESOLVE
- Invoices that are raised subsequent to the contract commencement date (e.g. accrued income). These invoices will need to be raised manually in FlowRev as the policy is to only record transactions in Xero when they are invoiced. NEED TO MAKE SURE THESE TRANSACTIONS ARE PUSHED INTO XERO FOR REVENUE RECOGNITION PURPOSES
- Expenses that need to be accrued will need to be raised in FlowREV and then imported into Xero.
SOLUTIONS
- On a monthly basis, reconcile Xero / FLow Rev vs the master renewals spreadsheet (maintained by X) to ensure that all late invoices have been accured for correctly