86011

Why Does a JE to a Revenue Account Cause an Unbilled Services File Reconciliation?

Cause:

A Journal Entry (JE) to a revenue account debits the balance sheet account and credits the revenue account listed in the entry (or vice versa).  

The difference between the General Ledger and the Subledger arises because the JE does not impact Unbilled Services on the Balance Sheet and DOES impact Unbilled Services on the subledger.  The subledger for Unbilled Services is the Unbilled column on the Office Earnings Report (OER).  This is a calculated column and the Unbilled amount is the difference between the Revenue and the Billed column.  In the case of the JE, the OER recognizes the revenue posted to a revenue account and as there is no change in the billed amount, the Unbilled column reflects the difference between the Revenue and Billed columns, resulting in a File Reconciliation situation because the amount shown in the Unbilled column is not reflected in the Unbilled Services on the Balance Sheet.

Resolution:

Alternative methods of adjusting revenue should be considered.

Knowledge Base Reference Number: KBA #86011