Enhancement - Deferred Holdback Revenue Does Not Reclassify Into Contract Revenue When Holdback is Released
Product: Accounts Receivable
Idea: Deferred Holdback Revenue Does Not Reclassify Into Contract Revenue When Holdback is Released
More information: Issue: When the Accounts Receivable Installation screen has the "Use deferred holdback revenue account?" option checked, when a Customer Invoice with Holdback and GST is entered and updated, the Deferred Holdback Revenue account is improperly including GST. The amount should be exclusive of the GST on the holdback.
Expected Result: When the Accounts Receivable Installation screen has the "Use deferred holdback revenue account?" option checked, when a Customer Invoice with Holdback and GST is entered and updated, the amount updated to the Deferred Holdback Revenue account should be exclusive of the GST.
Steps to reproduce:
1. A Spectrum company setup for Canada should be used. Select System Administration | Installation | Company, and on the Country tab check the "Utilize value added tax (VAT) tracking?", and enter a "Default tax code" of GST. Also select a Lexicon of "en-ca".
2. Select SA | Installation | AR, and check the option for the "Use deferred holdback revenue account?", and enter a different general ledger code than the contract sales general ledger code.
3. Select GL | Maintenance | Value Added Tax, and either enter a code of GST, or verify that the GST code exists and is setup properly for the GST on Customer Current Payable and Customer Holdback Payable. Separate general ledger accounts should be used for these. To keep the example simple, a rate of 5% can be used.
4. Select JC | Jobs | Jobs, and enter a new job. It is only necessary to enter the minimum required information, making sure to enter a Customer Code and Contract Amount. The job can be set to Fixed and Non-Taxable. Assign a holdback rate of 5% to the contract.
5. Select AR | DE | Customer Invoice Entry. Enter an invoice against the contract for $10,000. It is only necessary to enter one line item on the invoice. Verify that the Holdback and GST calculate properly, including the GST on the Holdback. If a 5% GST rate is used, the amounts should be: Holdback = $500 (5%), GST total = $500, GST on holdback = $25 ($500 x .05)
6. Update the invoice. The amounts are correct except for the revenue entries. Contract revenue should be $9,500, or $10,000 less $500 holdback. Deferred Holdback Revenue should be $500. Instead, the Deferred Holdback Revenue is $525, which is the Holdback plus GST. The Contract revenue is $9,475.
7. Select AR | DE | Customer Invoice Entry. Enter a zero dollar invoice against the contract, checking the option to "Override calculated holdback", and enter a negative holdback of $500. This is to release the Holdback into Current Due. Update the invoice. The Holdback is correctly released on both the accounts receivable and GST side, but the associated Deferred Holdback Revenue is not reclassified into Contract Revenue.
See attached screen shots.
Temporary Solution:
Environment (version, company code, job#, employee, etc.): V14.19, Support Server, SMC company, Job HB001
Browser and version: Mozilla Firefox 49.0.1
Related/similar screens and processes (and whether or not they’re working as expected - list any/all potential screen or reports that could be impacted): Same thing happens if the invoice is generated via Draw Request Entry
Requested versions to fix:
Submitted by Thomas Horn from Scott Builders, Inc. .
Incident #789840
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+ Chaney
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