Intacct Management & Use: OE Transaction Definitions for VSOE Enabled Accounting & Reporting
The NDH Group, Ltd.
March, 2011 / Note: This documentation release is intended to support Intacct’s Adv. Rev. Rec. features
Overview & Objective – The purpose of this I M & U is to document the setup and use of OE transaction definitions required for VSOE enabled
accounting and reporting. Although an assumption of Intacct-Salesforce integration is made, these definitions can be independently executed.
Framework – This I M & U provides an overview of the settings for the creation of actual Customer Invoices or “Invoiced Dollars” (Sales Invoice
Document), and those that drive accounting for VSOE requirements or “VSOE Dollars” (Sales Invoice Closing Document). Amounts presented on
the former document are intended for billing and renewal billing, where the latter must reflect a different allocation of the same total for purpose of
revenue recognition as prescribed by AICPA SOP 97-2, 98-9, and 81-1. The two form the separation between invoicing and financial reporting.
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Intacct Transaction Definition Setup – Header Info
Sales Invoice Document
Sales Invoice Closing Document
Approved Settings
Approved Settings
Setting Option
FN C? Setting Option
Post to
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GL Post to
 Override Suggested Price
Override Suggested Price
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Discount/Surcharge
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Discount/Surcharge

Track Line Item Discount/Surcharge
Track Line Item Discount/Surcharge

Require Memo
Require Memo
 Has Subtotals
Has Subtotals
4
 Show Expanded Subtotals
Show Expanded Subtotals
5
 Allow User to Override Line Item Tax
Allow User to Override Line Item Tax
6
 Enable Revenue Recognition
Enable Revenue Recognition
7
 Manage Renewals from this Transaction
Manage Renewals from this Transaction
8
 Enable Schedule by Line Item Conversion
Enable Schedule by Line Item Conversion
9
 Create Renewals only for Converted Line Items
Create Renewals only for Converted Line Items
10
 User Overrides Location
User Overrides Location
11
 User Overrides Department
User Overrides Department
12
Sales Invoice Transaction Definition (SITD) – Footnotes
This document serves as the Invoice to the Customer and reflects actual pricing or “real dollars” charged. As such, Transaction Definition settings
must be ordered to provide sub-totals, which can also be included in an earlier sales transaction such as an RFQ or Sales Order. The Document
must also allow for a Renewal Sales Transaction which will reflect the actual –not VSOE—dollars charged to the Customer at a future renewal.
FN C? Setting Comment
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AR Required Setting. As the Sales Invoice TD defines the actual Customer Invoice the results should be posted to the A/R Module for
management of the Customer’s receivable balance.
 Required Setting. Pricing will result from the conversion of a Salesforce Opportunity, but allowance for price changes should be
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allowed, even as it is unlikely.
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Sales Invoice Transaction Definition (SITD) – Footnotes (Continued)
Setting Comment
Required Settings. These settings allow additional price changes and the documentation of those changes. If pricing comes from a
Salesforce Opportunity making price changes is allowable, but unlikely. Also, List Prices from the SF Price Book won’t be apparent.
Required Setting. The SITD must allow sub-totals in order to finalize the sales transaction (generally not input in an earlier transaction
document like RFQ or Salesforce Opportunity).
Optional Setting. Not required for the type and/or purpose of the current sales transaction (this might be necessary for a more involved
sales transaction).
Required Setting. The SITD must allow a User to manually set the taxability of a line item(s). Although having both the Customer and
Item marked as “Taxable” will trigger marking the “Taxable” check-box, the User must be allowed to change this setting manually.
Banned Setting. Do not mark this check-box as Revenue Recognition should only be applied to the Sales Invoice Closing Document
(this subsequent document should reflect the reallocated “VSOE Dollars,” not actual dollars charged).
Required Setting. This check-box should be marked as the Renewal Sales Transactions should reflect actual dollars charged to the
Customer. I.E. We do NOT want this applied to the Sales Invoice Closing Document as that would trigger a Sales Invoice Renewal
reflective of VSOE $’s (a misrepresentation to the Customer).
Required Setting. Marking this check-box will allow for the retouch of the Renewal Macro start date. This flexibility must be afforded to
the User in case the original Renewal date needs to be changed.
Optional Setting. This is an optional, but discouraged setting. Marking this check-box will prevent the Renewal Macro from triggering
unless some additional Transaction Condition is added to the dialog box “Convert by Line.” (Also, there will be no Renewal reporting.)
The Convert by Line dialog box is only activated after the Convert by Line (link) is clicked (viewed from the Order Entry Transactions).
Required Setting. A User should be able to add an association to a Location for all line items or an individual line item. This
association will not be added in the predecessor document (Salesforce Opportunity).
Required Setting. A User should be able to add an association to a Department for all line items or an individual line item. This
association will not be added in the predecessor document (Salesforce Opportunity).
Sales Invoice Closing Transaction Definition (SICTD) – Footnotes
This document serves to account for the same total dollars invoiced on the Sales Invoice Document, but in manner consistent with guidance under
SOP 97-2 Et. Al. This means that individual line-item amounts from the Sales Invoice Document may be reallocated when converted to a Sales
Invoice Closing Document; typically the reallocation favors a more conservative outcome in terms of the timing of revenue recognition.
FN C? Setting Comment
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GL Required Setting. Posting of transactions from the Sales Invoice Closing Document should only affect the GL; if these results were
allowed to post the A/R Module duplicate and disparate amounts would be recorded in the Customer Ledger.
 Required Setting. After converting a Sales Invoice Document into a Sales Invoice Closing Document changes to the originally
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recorded invoice prices must be allowed; this provides the basis for transforming “Invoiced Dollars” into “VSOE Dollars.”
 Banned Settings. These allow additional price changes and the documentation of those changes. Since the line-item reallocations
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 considered in the Sales Invoice Closing Document will be done at the actual line item level these options are unnecessary.
 Banned Settings. Sub-totals must not be allowed on the Sales Invoice Closing Document as they are not considered for compliance
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with VSOE financial reporting.
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Sales Invoice Closing Transaction Definition (SICTD) – Footnotes (Continued)
Setting Comment
Banned Setting. Expanded sub-totals must not be allowed on the Sales Invoice Closing Document as they are not considered for
compliance with VSOE financial reporting.
Banned Setting. Tax sub-totals must not be allowed on the Sales Invoice Closing Document as they are not considered for
compliance with VSOE financial reporting.
Required Setting. This check-box MUST be marked as Revenue Recognition should only be applied to the Sales Invoice Closing
Document (this document should reflect the reallocated “VSOE Dollars”).
Banned Setting. This check-box should NOT be marked as the renewal sales transactions should ONLY reflect actual dollars charged
to the Customer. I.E. We do NOT want this applied to the Sales Invoice Closing Document as that would trigger a Sales Invoice
Renewal reflective of VSOE $’s (a misrepresentation to the Customer).
Required Setting. Marking this check-box will allow for retouch of the Revenue Recognition start date. This flexibility must be afforded
to the User in case the original Recognition date needs to be moved up.
Banned Setting. This check-box should NOT be marked as the renewal sales transactions should ONLY reflect actual dollars charged
to the Customer. I.E. We do NOT want this applied to the Sales Invoice Closing Document as that would trigger a Sales Invoice
Renewal reflective of VSOE $’s (a misrepresentation to the Customer).
Required Setting. Practically this check-box should be unmarked on a SICTD, but unless marked an error message will display when
any transaction is saved (relates to GL Account requirement for Location association).
Required Setting. Practically this check-box should be unmarked on a SICTD, but unless marked an error message will display when
any transaction is saved (relates to GL Account requirement for Department association).
System Settings & Permissions
 Order Entry Module / Activities / Order Entry Setup /
 Enable VSOE Allocations
 Override VSOE Price List in Transactions
• Do NOT Activate “Default Whole Transactions into One Bundle”
 Company Module / Users / Permissions / Order Entry Module
 VSOE Price Lists – Full CRUD
 VSOE Price List Entry – Full CRUD
 VSOE Allocation – View
 VSOE Fulfillment – View & Edit
Order Entry Module / Records
 Items: Update
o
<General Info>
o Base Price – Each Item will require a Base Price as the VSOE calc. references this field (see setting below related to “VSOE Price
List: Additions”). For Products (“Product – Specified”) and Software (“Software”) only a Base Price should be added; this price
should be identical to prices currently held in the “Price List.”
o
<VSOE Information> – Each Item will require attribution according to VSOE standards. Products (“Product – Specified”) and Software
(“Software”) must be categorized as “Delivered,” while Support (“Post Contract Support (PCS)”) and Services (“Services”) defaulted to
“Undelivered.”
Representative Items List <VSOE Setting>
VSOE Dlvr Status
Delivered
Item ID
NS1200
VSOE Category
Product - Specified
VSOE Rev Def Status
Defer until item is delivered
BAM-LIC250
Software
Delivered
Defer until item is delivered
BNS-GLD (New)
Post Contract Support(PCS)
Undelivered
Defer until item is delivered
BNS-T2
Services
Undelivered
Defer until item is delivered
Note1: Documented Items are representative of product/service categories. Example: NS1200 represents a product category (VIZ.
“Product – Specified”), whose default settings include Delivered and Defer until item is delivered.
Note2: All Items will require retouch to apply VSOE attributes.
\
 VSOE Price List: Additions
Select Values from VSOE Price List “VSOE Pricing Per 97-2”
Percent Base
Percent Of
Base Price
Software
Product –Specified
BNS‐T2
Amount
NA
NA
Note: NO presence of ANY Delivered Items, including, for example BAM-LIC250 and NS1200
Item ID
BNS‐GLD (New)
Value Base
Percent
Select Values from VSOE Price List “VSOE Discount Pricing Per 97-2”
Value Base
Percent Base
Percent Of
Percent
Base Price
Software
Product –Specified
BNS‐T2
Amount
NA
NA
Note: NO presence of ANY Delivered Items, including, for example BAM-LIC250 and NS1200
Item ID
BNS‐GLD (New)
Value
18%
2495
Value
16%
2195
Note1: Documented Items are representative of Service and Post Contract Support (PCS) categories. As noted above NO Items which
have been declared as “Delivered” (see above “Items: Update”).
Note2: VSOE Price List can be uploaded.
Sales Quote – Not Used
Sales Order – Used (Although Sales Order Information Can be Generated by Adding Product(s) to Opportunity in Salesforce )
Sales Order <Header Info>
Template Name
Template Class
UI Category
Description
User Based Permissions
Edit Policy
Delete Policy
Document Numbering Scheme
Affects Inventory
Increases/Decreases Inventory
Subledger Posting
Partial Conversion Handling
Affects Cost
Price List To Update
AR Term
Initial Price List
Special Price List
Override Suggested Price
Discount/Surcharge
Has Subtotals
Show Expanded Subtotals
Allow user to override line item tax
Enable Revenue Recognition
Manage Renewals from this Transaction
Enable Sch. By Line Item Conversion
Create Renewal only for conv. line items
User Overrides Location
User Overrides Department
Printed Format
Fixed Message
Title of Contact 1
Title of Contact 2
Warn If Quantity Falls Below Zero
Enforce Credit Limit
Warehouse Selection Method
Default Warehouse
Status
Standard Template Setting
Sales Order
Order
Order
Sales Order
False
All
All
Enable Numbering Scheme: True | [ Customer Invoice ]
No
Increase
None
Leave the Document Open
False
None
None
Base Price List 11 01 09 (Note: Price List reference should be deleted when using SF Price Book)
None
True
Track Line Item Discount/Surcharge: True | Require Memo: False
True
False
True
False
False
False
False
True
True
Custom Sales Invoice
None
“Bill to” | Show on Print: True | Allow Editing: True
“Ship to” | Show on Print: True | Allow Editing: True
True
True
Sort by ID (default)
None
Active
Sales Order <Inventory GL Info.>
Item GL Group
None
.
.
.
Standard Template Setting
DB/CR | GL Account
None
.
.
.
Sales Order <AR GL Information>
Item GL Group
None
.
.
.
Standard Template Setting
DB/CR | GL Account
None
.
.
.
Sales Order <Totals>
Inventory Total
None
Standard Template Setting
Maintain
Quantity
Sales Order <SubTotals>
Description
Standard Template Setting
Subtotal Type
| Value Type | Debit/Credit
Applied to Line
| Value
| GL Account
|
| GL Offset Account
Shipping & Handling
Charge
0
–
| Amount
| None
|–
| Credit
| None
| 94500 – Freight-Out | None
| 20000 – A/R: Trade | –
| False
| False
|–
Sales Tax
Charge
0
–
| Percent
| None
|–
| Credit
| None
| 56100 – Sales TaxP | None
| 20000 – A/R: Trade | –
| False
| True
|–
| Add/Subtract
| Add
| Department | Apportioned
| Location
| Is Tax
|
|
Note: Although the Sales Order transaction does not post to either the Subledger or G/L the accounts must be included to avoid an Intacct error.
Sales Order <Recall Information>
Can be Created From
None
Standard Template Setting
Inherit Source Document Number
False
Sales Order <User Permissions>
None
Standard Template Setting
None
Sales Invoice <Header Info>
Template Name
Template Class
UI Category
Description
User Based Permissions
Edit Policy
Delete Policy
Document Numbering Scheme
Affects Inventory
Increases/Decreases Inventory
Subledger Posting
Partial Conversion Handling
Affects Cost
Price List To Update
AR Term
Initial Price List
Special Price List
Override Suggested Price
Discount/Surcharge
Has Subtotals
Show Expanded Subtotals
Allow user to override line item tax
Enable Revenue Recognition
Manage Renewals from this Transaction
Enable Sch. By Line Item Conversion
Create Renewal only for conv. line items
User Overrides Location
User Overrides Department
Printed Format
Fixed Message
Title of Contact 1
Title of Contact 2
Warn If Quantity Falls Below Zero
Enforce Credit Limit
Warehouse Selection Method
Default Warehouse
Status
Standard Template Setting
Sales Invoice
Invoice
Invoice
Sales Invoice
False
All
All
Enable Numbering Scheme: False | None
No
Increase
Post to AR
Leave the Document Open
False
None
Net 30 Day Terms
Base Price List 11 01 09 (Note: Price List reference should be deleted when using SF Price Book)
None
True
Track Line Item Discount/Surcharge: True | Require Memo: False
True
False
True
False
True
True
False
True
True
Custom Sales Invoice
None
“Bill to” | Show on Print: True | Allow Editing: True
“Ship to” | Show on Print: True | Allow Editing: True
True
True
Sort by ID (default)
None
Active
Sales Invoice <Inventory GL Info.>
Item GL Group
None
.
.
.
Standard Template Setting
DB/CR | GL Account
None
.
.
.
Sales Invoice <AR GL Information>
Item GL Group
Product Revenue
Product Revenue
Professional Services
Professional Services
Maintenance – New
Maintenance – New
Maintenance – Renewal
Maintenance – Renewal
Training
Training
Standard Template Setting
DB/CR | GL Account
Debit | 20000 – Accounts Receivable
Credit | 50900 – Deferred Income
Debit | 20000 – Accounts Receivable
Credit | 50900 – Deferred Income
Debit | 20000 – Accounts Receivable
Credit | 50900 – Deferred Income
Debit | 20000 – Accounts Receivable
Credit | 50900 – Deferred Income
Debit | 20000 – Accounts Receivable
Credit | 50900 – Deferred Income
| Is Offset?
| Is Offset: True
| Is Offset: False
| Is Offset: True
| Is Offset: False
| Is Offset: True
| Is Offset: False
| Is Offset: True
| Is Offset: False
| Is Offset: True
| Is Offset: False
Sales Invoice <Totals>
Inventory Total
None
Standard Template Setting
Maintain
Quantity
| Add/Subtract
| Add
Sales Invoice <SubTotals>
Description
Standard Template Setting
Subtotal Type
| Value Type | Debit/Credit
Applied to Line
| Value
| GL Account
|
| GL Offset Account
Shipping & Handling
Charge
0
–
| Amount
| None
|–
| Credit
| None
| 94500 – Freight-Out | None
| 20000 – A/R: Trade | –
| False
| False
|–
Sales Tax
Charge
0
–
| Percent
| None
|–
| Credit
| None
| 56100 – Sales TaxP | None
| 20000 – A/R: Trade | –
| False
| True
|–
| Department | Apportioned
| Location
| Is Tax
|
|
Sales Invoice <Recall Information>
Can be Created From
Sales Order
Standard Template Setting
Inherit Source Document Number
True
Sales Invoice <User Permissions>
None
Standard Template Setting
None
Sales Invoice Closing <Header Info>
Template Name
Template Class
UI Category
Description
User Based Permissions
Edit Policy
Delete Policy
Document Numbering Scheme
Affects Inventory
Increases/Decreases Inventory
Subledger Posting
Partial Conversion Handling
Affects Cost
Price List To Update
AR Term
Initial Price List
Special Price List
Override Suggested Price
Discount/Surcharge
Has Subtotals
Show Expanded Subtotals
Allow user to override line item tax
Enable Revenue Recognition
Manage Renewals from this Transaction
Enable Sch. By Line Item Conversion
Create Renewal only for conv. line items
User Overrides Location
User Overrides Department
Printed Format
Fixed Message
Title of Contact 1
Title of Contact 2
Warn If Quantity Falls Below Zero
Enforce Credit Limit
Warehouse Selection Method
Default Warehouse
Status
Standard Template Setting
Sales Invoice Closing
Invoice
Invoice
Sales Invoice Closing
False
All
All
Enable Numbering Scheme: False
No
Increase
Directly Post to GL
Leave the Document Open
False
None
None
Base Price List 11 01 09 (Note: Price List reference should be deleted when using SF Price Book)
None
True
Track Line Item Discount/Surcharge: False | Require Memo: False
False
False
False
True
False
True
False
True
True
Custom Sales Invoice
SALES INVOICE CLOSING DOCUMENT - NOT FOR REMITTANCE
“Bill to” | Show on Print: True | Allow Editing: True
“Ship to” | Show on Print: True | Allow Editing: True
True
True
Sort by ID (default)
None
Active
Sales Invoice Closing <Inv. GL Info.>
Item GL Group
.
.
.
Standard Template Setting
DB/CR | GL Account
.
.
.
Sales Invoice Closing <AP GL Info>
Item GL Group
Product Revenue
Product Revenue
Professional Services
Professional Services
Maintenance – New
Maintenance – New
Maintenance – Renewal
Maintenance – Renewal
Training
Training
Standard Template Setting
DB/CR | GL Account
Debit | 50900 – Deferred Income
Credit | 70100 – Product Revenue
Debit | 50900 – Deferred Income
Credit | 70200 – Professional Services
Debit | 50900 – Deferred Income
Credit | 70300 – Maintenance - New
Debit | 50900 – Deferred Income
Credit | 70400 – Maintenance - Renewal
Debit | 50900 – Deferred Income
Credit | 70250 – Training
| Is Offset?
| Is Offset: True
| Is Offset: False
| Is Offset: True
| Is Offset: False
| Is Offset: True
| Is Offset: False
| Is Offset: True
| Is Offset: False
| Is Offset: True
| Is Offset: False
Sales Invoice Closing <Totals>
Inventory Total
None
Standard Template Setting
Maintain
Quantity
| Add/Subtract
| Add
Sales Invoice Closing <SubTotals>
Description
Standard Template Setting
Subtotal Type
| Value Type | Debit/Credit
Applied to Line
| Value
| GL Account
|
| GL Offset Account
| Department | Apportioned
| Location
| Is Tax
|
|
Discount
0
–
| None
| None
|–
| Amount
| None
|–
| Credit
| None
| None
| False
| False
|–
Sales Invoice Closing <Recall Info>
Can be Created From
Sales Invoice
Sales Invoice Closing
Standard Template Setting
Inherit Source Document Number
True
Sales Invoice Closing <User Perm>
None
Standard Template Setting
None
Product Lines
Hardware
Product Line Description:
Parent Product Line
Hardware
None
Installation
Product Line Description:
Parent Product Line
Installation
None
Maintenance
Product Line Description:
Parent Product Line
Maintenance
None
Maintenance - New
Product Line Description:
Parent Product Line
Maintenance - New
Maintenance
Maintenance - Renewal
Product Line Description:
Parent Product Line
Maintenance - Renewal
Maintenance
Software
Product Line Description:
Parent Product Line
Software
None
Support
Product Line Description:
Parent Product Line
Support
None
Training
Product Line Description:
Parent Product Line
Training
None
Item GL Groups
Product Revenue
Deferred Revenue GL Account: 50920 – Unearned Revenue – Product
Default Revenue Recognition Template: Rev Rec – Monthly – End – TD
Professional Services
Deferred Revenue GL Account: 50930 – Unearned Revenue – Professional Services
Default Revenue Recognition Template: Rev Rec – Monthly – End – CC
Maintenance – New
Deferred Revenue GL Account: 50900 – Unearned Revenue – New Maintenance
Default Revenue Recognition Template: Rev Rec – Monthly – End – UD
Maintenance – Renewal
Deferred Revenue GL Account: 50910 – Unearned Revenue – Renewal Maintenance
Default Revenue Recognition Template: Rev Rec – Monthly – End – UD
Training
Deferred Revenue GL Account: 50935 – Unearned Revenue – Training
Default Revenue Recognition Template: Rev Rec – Monthly – End – CC
Revenue Recognition Templates
Revenue Recognition Template for Contract Term (TD)
Template ID:
Template Description:
Recognition Method:
Recognition Schedule Period:
Posting Day:
Recognition Term:
VSOE System Resume Options:
# of Periods:
Recognition Start Date:
Posting Method:
Rev Rec – Monthly – End –TD
Revenue Recognition - Monthly / Posting Daily / Periods Transaction Date
Even Periods
Monthly
Daily
Contract Term
Walkforward
None
Transaction Date
Automatic
Revenue Recognition Template for Deferred Suspended (CC)
Template ID:
Template Description:
Recognition Method:
Recognition Schedule Period:
Posting Day:
Recognition Term:
VSOE System Resume Options:
# of Periods:
Recognition Start Date:
Posting Method:
Entries:
Rev Rec – Monthly – End –CC
Revenue Recognition - Monthly / Posting End / Periods Contract Completion
Custom
Monthly
End of Period
Fixed Period
Walkforward
5
User Specified
Manual
Account: 70300 – Professional Services
Period Offset: 0
Account: 70300 – Professional Services
Period Offset: 1
Account: 70300 – Professional Services
Period Offset: 2
Account: 70300 – Professional Services
Period Offset: 3
Revenue Recognition Template for User Defined (UD)
Template ID:
Template Description:
Recognition Method:
Recognition Schedule Period:
Posting Day:
Recognition Term:
VSOE System Resume Options:
# of Periods:
Recognition Start Date:
Posting Method:
Rev Rec – Monthly – End –UD
Revenue Recognition - Monthly / Posting End / Periods User Defined
Exact days per period, prorate days
Monthly
End of Period
Contract Term
Walkforward
None
User Specified
Automatic
Percent Amount (%): 0
Percent Amount (%): 0
Percent Amount (%): 0
Percent Amount (%): 100
Renewal Macro – Annual Invoice Renewal
Step 1
Create Sales Transaction:
False
Alert for Sales Team:
True
Create Salesforce Opportunity:
False
Step 2
When:
45 Days Before Contract End Date
Email ID for ‘From’ part Alert Email:
Email Addresses:
Step 3
Renewal Macro ID:
Status:
Annual Invoice Renewal
Active
Item: Annual Maintenance Contract <Term>
Item has Start and End Date:
True
Term Period:
Months
Default # of Periods:
12
Compute Price for Short Term:
True
Default Renewal Macro:
Annual Invoice Renewal
Further Instruction & Use – For further information regarding Order Entry Transaction Definitions contact The NDH Group, Ltd. at 312.461.0505 or
on the web: http://www.ndhcpa.com.