Multi Period Accounting (MPA) 4 – Comparison & Extension

Comparison:

MPA in SLA is too limited. It can only recogonize the prepaid expense or defered revenue evenly. And the recogonition schedule is also very limited. So, the revenue recogonition functionality can’t use this SLA feature to fulfill their requirement. You can see “Accounting Rule” setup is more flexible than MPA setup.

MPA in SLA are generating multiple period journal entries under one event (m:1), while revenue recogonition are generating journal entries under multiple events (1:1).

MPA in SLA complete the journal entries by “Complete Multi Period Journal Entries” program, while revenue recogonition complete the journal entries by “Create Accounting”.

Personally I still prefer the way of Receivables’s revenue recogonition.

 

Extension:

1. In FAH (Financial Accounting Hub) context, as you can create your own event model, you can select the way of Receivables’s revenue recogonition to create multiple event for multiple period and assigne event source to these event. The event source can be calculated freely by program code, so the shedule is free and amount (proporate percentage) is also can be calculated by flexible configuration.

2. In SLA implementation context, you can not create your own event model, you can only use the existing event, e.g. AP invoice validation, but you want to get a flexible recogonition schedule and recogonition percentage. You have two way to try to do:

  • Use create accounting hook. There are seversal kind of create accounting hook. Here, we can use “Preaccounting” and “Postaccounting”hook. Before accounting, we can change the “MultiPeriod Start Date” and “MultiPeriod End Date”to a proper value to get the same installment number of your flexible recogonition schedule, so the create accounting will generate this number of recogonition installments. After accounting, in postaccounting hook, you can programmly change the GL date and line amount against your flexible recogonition schedule setup, then optionally change back the “MultiPeriod Start Date” and “MultiPeriod End Date”. For other process, it is as the same as standard functionality.
  • In above solution, we can make it more easier. We don’t need to change “MultiPeriod Start Date” and “MultiPeriod End Date”and change it back. As these two attributes are finally go into event sources. We can change the event sources directly by revising the event source “view”. In the view, we directly make it to get the same installment number of flexible recogonition schedule. In postaccounting hook, you can programmly change the GL date and line amount against your flexible recogonition schedule setup. By this way, user is more transparent.
  • As the multi period accounting entries are generated during “Create Accounting”, copy the create accounting program and find out the part of multi period journal entry generation, change the schedule and amount calculation logic. Don’t touch the status control part, just change the GL date and amount calculation.

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