GLS Accrual Integration Overview

 

There are three areas in Tabs3 for which accrual postings can be made: Accounts Receivable, Work-in-Process and Client Funds. The Accounts Receivable and Work-in-Process areas are further broken down by type, such as fee, expenses, advances, etc. Debit and credit journal entries that summarize the net change in each of the following items can be posted, thus providing accrual balances on the GLS Balance Sheet. Accrual integration can be configured to post journal entries for the following areas:

Accounts Receivable	Fee Accounts Receivable Expense Accounts Receivable Advance Accounts Receivable Finance Charge Accounts Receivable Unapplied Payment Accounts Receivable Progress Fee Accounts Receivable
Work-in-Process	Fee Work-in-Process Expense Work-in-Process Advance Work-in-Process Progress Fee Work-in-Process
Client Funds	Client Funds

Configuration of the General Ledger accounts, General Ledger journal number, and Journal Entry description used for these accrual journal entries is set up in the GLS Accrual Integration section in the GLS Integration Setup program. Tabs3 can be configured to post journal entries for the entire firm, for separate primary timekeepers, or a combination of firm and primary timekeepers.

Accrual journal entries are posted to GLS when the Post Tabs3/TAS Accrual Balances program is run in GLS. You can post journal entries for Accounts Receivable Balances only, Work-in-Process Balances only, Client Funds Balances only, or any combination thereof. Typically, this posting program is run once a month, but may be run as often as desired.

Note: If GLS is integrated with TAS, the Post Tabs3/TAS Accrual Balances program in GLS can also post accrual journal entries to the GLS accrual accounts configured for the TAS bank accounts.

How to Set Up GLS Accrual Accounts

In order to allow for both cash and accrual basis reports in GLS, special accrual accounts need to be added to GLS. These accounts can be designated as accrual accounts by selecting the Accrual Account check box in the Account Setup program in GLS.

• When running cash basis GLS reports, the Include Accrual Accounts check box must be cleared in order to prevent accrual accounts from displaying on the reports.
• When running accrual basis GLS reports, the Include Accrual Accounts check box must be selected in order for accrual accounts to display on the reports.
  

The accrual debit accounts will all need to be asset accounts. The accrual credit accounts will all need to be owner equity or liability accounts. This method permits Accounts Receivable to be shown on the Balance Sheet as it would be if using a true accrual basis accounting method but without overstating income, which will always be on a cash basis.

Amounts Posted

The actual amount posted is based on the net change for the item since the last time the Post Tabs3/TAS Accrual Balances program was run. Internally, GLS tracks the balances when the posting program is run. For example, if the Fee Accounts Receivable was $10,000 the last time the posting program was run, and the current Fee Accounts Receivable is $12,000, then $2,000 will be debited and credited to the specified GLS accounts when the posting program is run, thus showing a $12,000 balance for the Fee Accounts Receivable account in GLS.

Note: When more than one accrual item is mapped to use the same GLS accounts and journal, one set of journal entries will be posted to GLS for the combined amount. Since only one description will be used for the posting, it is recommended that all accrual items with the same GLS accounts and journal use the same description.

Complete details regarding how the journal entry amount is determined can be found in the GLS help for the Post Tabs3/TAS Accrual Balances program.

See also:	GLS Integration Overview
	Setting up GLS Accrual Integration
	Example of GLS Chart of Accounts for Accrual Information