Fees in advance

TABLE OF CONTENTS

• Introduction.
• Setup
• Raising Invoices

Introduction.

Engage fees allows you to manage your revenue recognition into the correct accounting period by using the fees in advance facility. The Fees in Advance facility is only available when you are using Engage Accounts (or DF Accounts).

Setup

Charges need to be set up and marked as Fees in advance before using this functionality. In Fees > Setup > Charge and Discount Structure there is an Is Advance tick box in the bottom right panel, which you can select against any charge or discount. Engage Accounts will only manage the items where you tick the box as advance charges.

Raising Invoices

Fees in Advance can then be used as following:

• When you raise invoices in Fees > Invoices > Raise Invoices, there is a Fees in Advance Date field. When the date is set to a later date than the Invoice date, charges that you marked as Is Advance in the Charge and Discount Structure will be treated as advance fees charges. They will initially post to your Fees  nominal as at the invoice date. Engage Accounts generates an automated reversing journal taking the taking the income out as at the invoice date to the Advance Fees nominal account, and at the fees in advance date bringing the income back to the correct nominal code for the charge item.
• When you record a Quick Receipt in Fees>Collection>Quick Receipts using a charge that you marked as Is Advance in the Charge Group and Charge Item will initially go to your Fees in Advance nominal account, and Engage Accounts generates an automated reversing journal at the fees in advance date to take the income back to the correct nominal code for the charge item.

All standard charges will go directly to the correct income at the invoice date. This allows you to raising invoices with a mixture of advance and standard dated items. If you do not want Engage Accounts to manage the Is Advance type fees charges differently, enter the same date in the invoice and Fees in Advance fields.

For more information on Fees in Advance please see the Engage Fees Setup guide (Charge and Discount section) and the Engage Fees Billing guide (Raise Invoices section).