1. Contract and Service Billing Implementation Guide
  2. Understanding Preliminary G/L Journal Entries

Understanding Preliminary G/L Journal Entries

When you run the Journal Generation program (R48132) to create journal entries, the system:

  • Creates a record in the Service Billing Batch Control table (F48011).

    The current activity field is set to 1, indicating that invoice generation is in progress.

  • Uses data selection and processing options to select workfile transactions to process.

  • Creates revenue fee records in the Billing Detail Workfile table (F4812) and generates preliminary general ledger journal entries for the fee records.

  • If you have selected the Journal Reclassification Control check box in the Billing Constants program (P48091), uses the original record in the Employee Transaction History table (F0618) and information from the F4812 table and the Billing Workfile History table (F4812H) to create journal reclassification entries in the Payroll Reclassification Workfile table (F48S0618).

    See Setting Up Billing Constants.

    Note: The Journal Generation program (R48132) supports multicurrency time accounting.

  • Processes these workfile transactions using the billing AAIs to retrieve accounting rules.

  • Uses the accounting rules from billing AAIs to create the detail journal entries that are stored in the Billing Detail Journal Workfile table (F48S910).

  • Summarizes the journal entries stored in the F48S910 table and stores the summarized records in the Summarized Journal Workfile table (F48S911).

  • Runs the Journal Edit Register program (R48300), which also edits the summarized preliminary journal entries.

  • Produces a report that lists any errors that occurred during processing.

For Contract Billing only, the system performs these additional actions:

  • For not-to-exceed (NTE) processing, determines whether revenue amounts exceed NTE limits.

    If an NTE limit has been exceeded, the system creates NTE offset records in the Contract Revenue Summary Work File table (F5280W) and the Billing Detail Workfile table (F4812), assigns the component code *NTE (Not-to-Exceed Offset Code) to the NTE offset record in the F4812 table, and generates the Not To Exceed Offset Report (R521331), which lists the NTE offset records.

    The system assigns a component line number to the original transaction and to the NTE transaction. The NTE transaction has a reason code of HL (Contract Header Limit Exceeded).

  • Writes records in the F5280W table.

    The current activity field in the batch header is reset to 0 to enable additional processes to be performed against this batch.

    Note: You can delete a batch of preliminary journal entries and rerun the Journal Generation program as often as needed.