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Transaction Rules - Overview

Problem Details:

What are transaction rules?

 

Solution:

transaction rule is a set of steps that are taken when a transaction (such as an employee timesheet) is posted for a project.  (Currently, transaction rules can be applied only to timesheet entries.)

With a transaction rule, a sequence of steps can be defined that:

  1. Looks for specific types of transactions that are posted to a project, such as timesheet entries for employee labor.
  2. Adds rules for calculating secondary transactions.
  3. Posts one or more secondary transactions, in the form of a journal entry such as:
  • Indirect labor costs
  • Unbilled AR or WIP

 

Example: Calculating Unbilled AR or Work in Progress (WIP)
You may work on a project for weeks, months, or even longer before invoicing the customer, which means that the dollar value of your labor isn't reflected in Accounts Receivable or your bank accounts. Using transaction rules, you can have Intacct automatically capture the billable value of timesheet entries and post them to a balance sheet account, such as Unbilled AR or WIP.

Here's how it works:

  1. You define a transaction rule for calculating Unbilled AR or WIP. Let's call it your "WIP calculation" rule.

    A typical rule might:

    • Retrieve the billable amount of timesheet entries, as they come in.
    • In the same step, post the amount to an Unbilled AR or WIP account. You define this posting in the form of a journal entry.
  2. As you create new projects, you assign the "WIP calculation" rule to them.
  3. As timesheet entries are posted to projects, the transaction rule kicks in and automatically posts to Unbilled AR or WIP.

Tips: 

  • Since the billable amounts for timesheet entries are derived using the same logic that will be used at invoicing time, you can later relieve the Unbiled AR or WIP as invoicing occurs. The relief of Unbilled AR or WIP is typically done using an intermediary Order Entry document, so that you first relieve Unbilled AR or WIP and then convert that relief document to an actual invoice.
  • Projects can have multiple transaction rules assigned to them, so that you can handle indirect cost posting and unbilled AR at the same time.
     
 
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