Revenue Recognition
Revenue Recognition manages the month-end process of recognising deferred revenue in line with the school's billing and deferral schedule configuration. It allows finance staff to run recognition processing across all eligible deferral schedules for a given period using the Periodic tasks batch process, or to process recognition for a single invoice directly from the Deferral schedules list. Correct configuration of cutoff dates and transaction dates ensures that revenue is posted to the appropriate general ledger accounts for the period being closed.
Month End Processing
Month-end processing in GEMS covers the tasks required to close out a financial period accurately. The two processes below; batch recognition across all eligible schedules, and single-invoice recognition should be completed before the period is locked.
Revenue Recognition Processing
From the FNO dashboard, open Modules ▸ Subscription billing ▸ Revenue and expense deferrals.
Expand Periodic tasks and click Recognition processing.
In the Cutoff date field, enter the last day of the month.
In the Description field, enter a value.
In the Override transaction date field, select Yes.
In the Transaction date field, enter the last day of the month.
Note: The Cutoff date and Transaction date should both be set to the last day of the month being closed. Setting Override transaction date to Yes ensures the journal posts with the correct period date regardless of when the process is run.
Click View preview.
Note: The preview lists all deferral schedule lines that will be recognised up to the Cutoff date. Review this list before posting to confirm the entries are correct.
Click Process to post the revenue recognition journal.
Recognise a Specific Invoice
From the FNO dashboard, open Modules ▸ Subscription billing ▸ Revenue and expense deferrals.
Expand Deferral schedules and click All deferral schedules.
Locate and select the posted invoice.
Click the deferral number to open the schedule.
Select the Line.
Click Recognize.
In the Cutoff date field, enter the last day of the month.
In the Description field, enter a value.
In the Override transaction date field, select Yes.
In the Transaction date field, enter the last day of the month.
Click View preview.
Click Process.
Note: After posting, click Audit trail to verify the journal entry was posted, then click Voucher transaction to review the posted voucher.
