Funding Source Payables & Gain on Sales Treatment

Funding Source Payables & Gain on Sales Treatment

Bank Funding Module, Funding Source Payable 


 

GL mapping and processing options 

 

There are options for handling the amounts due to and from the Funding Source (FS) within Aspire and the clients GL


Each FS has their own unique GL mapping (interface).  This allows the client to set up payables and receivables as granularly as or generic as the accounting department chooses.   

 


Receivable Due from Funding Source (FS) for the purchase of the transaction


Option 

Mapping:  Receivable due from FS 

Prompt and Process 

 

Map to Receivable due from FS 

Upon receipt of payment from FS, process a JE in Client GL to  

      Dr Cash     Cr Receivable due from FS  

2 

Map to Receivable due from FS 

Create a Miscellaneous Billing for the FS Account for the amount due from FS (Receivable).   


Map the Transaction code to the Receivable due from FS.  Upon receipt of the payment from the FS, clear the receivable. 

3 

Map to the depository (cash) account 

Upon receipt of the payment from the FS, post the funding in ASPIRE. 


(Watch for timing issues should the funding be posted prior to receipt of funds) 



Payable Due to Funding Source (FS) - Payments due to the FS from client 

 

Payments due to the FS, can be either accrual basis or cash basis depending on the Accounting Method selected for the payment transactions code.  The FS GL mapping will determine the payable account to credit when the entry is made. 

 


Determining timing of the payable entry

Option 

Transaction (Rent) Accounting Method (Cash or Accrual) 

Prompt and Process 

 

Accrual Post When Due 

After scheduled billing is processed, then upon the due date (scheduled billing is required) 

2 

Accrual Post When Invoiced 

Upon Scheduled Billing of the Payment Amount 

3 

Cash Basis (Post when invoiced) 

Upon applying the payment via cash management to the invoiced/Billed payment amount due to the FS. 


 

Once the entry is recorded, the Current Payable to Funding Source Report will reflect the amounts due to the FS, based on the timing outlined. 

 




GAIN ON SALE Accounting Treatment Options

 

For a sale transaction, the client has the option of recording the gain on sale at the time of the sale (cash basis) or recording the gain over the remaining term of the sold contract. 

 


Cash Basis 

ASPIRE naturally records the gain at the time of the sale transactions as mapped in the FS GL mapping.   

 


Amortize over remaining term 
  

After the sale transaction is processed. 


NOTE:  This is a key point, do not set up the GOS contract item until the sale transaction has been posted, otherwise, the gain will be accelerated at the time the sale transaction is posted.


 

Set up a non-financed Contract item of type Contract_Credit to amortize over the remaining term for the amount of the GOS.   The Debit account for this Contract Item should map to the GOS account of the FS. 



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