General Ledger and Rentals - Partnership 2

GL Codes parameters have been added to WP Admin > Inventory Control > Store Set Up > Department/Class/Category module (Ctrl-J 103).

The parameters are Rental Revenue, Rental NR Revenue, Rental NR Adjustment, and Rental Transfer

If you have PrismCore GL, the appropriate GL codes must be attached to the new and used textbook DCCs. 

General Ledger Codes for Rental Textbooks

If your store has PrismCore General Ledger, GL codes for rentals must be established.  It’s recommended to set up separate GL codes for new and used.  Having separate codes makes auditing rental activity easier than using the same codes for new and used.

All GL codes are entered in PrismCore Admin, with one exception.  The GL code for the NBC Rental Rebate is set in the Rental Maintenance Module in ICS.

You will need the GL codes for the following:

In PrismCore Admin, entering and maintaining general ledger codes can be done in General Ledger Accounts <Ctrl+ J 221> or in GL Code Maintenance <Ctrl+1091>.  While they have different names and jump sequences, they are the same module.  Consult with appropriate personnel and follow normal procedures to create the codes, if they do not already exist in your chart of accounts.

General Ledger Codes for Textbook DCCs

If your store has PrismCore General Ledger, the appropriate GL codes for Rental Revenue, Rental Not Returned Revenue, Rental Transfer and Rental Adjustment must be entered on the GL Codes tab for DCCs of new and used textbooks in Department/Class/Category <Ctrl+J 103> in PrismCore Admin.  Note that the image below is for New Textbooks only.

Open

Step-by-step instructions assuming existence of required GL codes

1. In WP Admin, access Department/Class/Category <Ctrl+J103>.

2. In the DCC pane (on the left), click on the appropriate textbook department, class or category to which you need to assign GL codes.  Remember to assign GL codes to both new and used.

3. In the Parameter and GL Code grid (on the right), scroll down until you can see the parameters for rentals.

4. For each parameter, click the ellipsis and select the appropriate GL code.

Rental Revenue

Rental Revenue GL code parameter in the WP Admin is used to record monies collected when store managed textbooks are rented.  You may have one code for both new and used or two, one for used and one for new.  It is used when journal entries are created to reflect rental revenue.

The entries are          Debit:  Tender

                                    Credit: Rental Revenue by DCC

Rental NR Revenue

When either the Process Not Returned Billings or the Process Replacement option is run from Rental Number Maintenance and the customer is charged for books not returned to the store, journal entries are created for the General Ledger. 

The revenue is recorded in the GL as Rental Not Returned Revenue.  The entries are:

                                    Debit:  Tender

                                    Credit: Rental Not Returned Revenue

The amount of the revenue is equal to sum of the Replacement cost and Penalty fee.

Rental Not Returned Adjustment

When one of the processes to charge the customer for the non-returned rental is run or when the rental is closed as unrecoverable in Rental Number Maintenance, for either an NBC Partnership 2 or store managed rental, the system assumes that the textbook will not be coming back into inventory.  Consequently, the system creates a stock adjustment to reduce inventory which creates a journal entry: 

                                    Debit:  Rental NR Adjustment GL Code for the DCC

                                    Credit: Inventory GL code for the DCC

The rental item’s accounting cost is used for the journal entry.