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AnchorRTF34393132303a20417070656eRTF34393132303a20417070656eInsertion Order Accounting
When a regular Order is placed through the Orders service and the status is set to Shipped, order GL account entries are created. In the case of Advertising, however, the user does not create the Order directly from the Orders service. The user creates an Insertion Orders record from the Insertion Order service in the Advertising module, which triggers the creation of an associated Orders record. Because the income from an advertising product may be deferred income, the insertion order also creates the appropriate GL entries to move the income to the appropriate accounts.

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If the customer cancels the insertion order prior to the Product Issue's Revenue Recog-nition Recognition Date, the insertion order is marked cancelled and generates a cancellation order with Order GL entries that reverse the original order's GL entries when it is saved. It also creates two scheduled transactions to reverse the original scheduled transactions to complete the cancellation. The first scheduled transaction is created with a creation date of the current date and a scheduled date of the current date. This scheduled transaction debits the deferred income account and credits the sales account. The transaction is necessary because it reverses the first scheduled transaction created in the original order.
The second scheduled transaction is created with a creation date of the current date and a scheduled date of the Revenue Recognition date. This transaction is an exact reversal of the second schedule transaction created from the original order. The transaction also completes the reversal cycle and creates a net zero effect of all general ledger accounts used for the original order.

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The order generates the order GL account entries to capture the sale of the product (the advertisement space) on the date of the order.

1st Scheduled Transaction: Creation Date Sept 1st – Scheduled Date Sept 1st

Since the revenue is not recognized on the date the Insertion Order was set to Approved, a scheduled transaction is created moving the revenue from the Sales account to the Deferred Income account.

2nd Scheduled Transaction: Creation Date Sept 1st – Scheduled Date Nov 1st

Another scheduled transaction is created at the time the insertion order is marked Shipped to recognize the deferred revenue. This is accomplished by transferring the revenue from the Deferred Income account to the Sales account, using the Revenue Recognition Date from the Insertion Order's Product Issue. This date is the scheduled date in the Scheduled Transactions record and is the date the reversing entries are batched and recognized.

Canceled Insertion Order Before the Revenue Recognition Date

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If the cancellation date is October 1st, one month before the revenue recognition date, the following order GL entries are created by the associated cancellation order.

An insertion order marked Cancelled before the Revenue Recognition Date creates two scheduled transactions that reverse the two scheduled transactions from the original insertion order.

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The first scheduled transaction reverses the deferred income and sales accounts from the original order scheduled transaction and is dated with the cancellation date of October 1st.

2nd Scheduled Transaction: Creation Date Oct 1st – Scheduled Date Nov 1st

The second Scheduled Transaction is also created on the date of the cancellation and reverses the deferred income and sales accounts on the original order scheduled transaction for the revenue recognition date November 1st. This action creates a net zero effect with the second scheduled transaction created with the original order.