Recognize revenue when the service is provided, not when cash changes hands. Easily send accrual-basis revenue to your accounting package.
What's in this article
- What is Accrual Accounting?
- Setting Up Accrual Accounting
- Applying and Editing Charges with Service Dates
What is Accrual Accounting?
Accrual-basis accounting recognizes business revenue and matching expenses when the service generating the revenue is provided, and when the expense is incurred — not simply when money changes hands. To learn more about accrual accounting, check out these videos that offer a simple and clear explanation of accrual-basis accounting and how it differs from cash-basis accounting.
Enabling Accrual Accounting in Kindertales
To begin using accrual-basis accounting in Kindertales, you need to first turn on the feature.
- Navigate to Settings > Features
- In the Billing section, make sure the toggle is set to ON
- Click the radio button for Accrual Accounting
Setting Up Your Debit Types
Now that Accrual Accounting is turned on in your settings, you'll need to set up which Debit Types will be accounted on an accrual basis.
- Navigate to Settings > Billing > Debit Types
- You will now see an additional checkbox labeled Accrual for each debit type
- Check the box for each debit type you would like to be accounted for on an accrual basis; these settings will auto-save.
- If a Debit Type has accrual checked, this means that any charge with that debit type will be accrued based on service dates generated by the system, or selected by the user. See below for how the system generates service dates.
- Service dates are modifiable on a charge-by-charge basis.
- Credits are treated as cash and therefore not accrued.
Service Dates & Pricing Tier Billing Periods
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Selecting A Pricing Tier Billing Period
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Selecting A First Recurring Charge Date for a Child's Program
For recurring charges, Kindertales will automatically assign service dates based on the child's specific enrollment schedule, and the Billing Period rules below. The first Service Date is always the child's first day of care in the Billing Period Date Range.
| Pricing Tier Period Selection | Billing Period Date Range | Service Date(s) | Example |
| Bi-weekly (26 payments) | 14 days, starting on the First Recurring Charge Date | All scheduled days of care in the Billing Period Date Range | I charge a family every other Monday. The child attends two days a week, every Wednesday and Thursday. The four Service Dates in the billing period are each Wednesday and Thursday. The Billing Period Date Range is Monday to the following Sunday. |
|
Monthly |
One month's worth of time, starting on the First Recurring Charge Date | All scheduled days of care in the Billing Period Date Range | I charge a family on the 20th day of the month. The child attends Monday, Wednesday, and Friday each week. The service dates are each Monday, Wednesday, and Friday in the Billing Period Date Range. Each month, the Billing Period Date Range is the 20th to the following 19th. |
| No Schedule | N/A - there is no recurring billing period for No Schedule Programs | Any scheduled days of care created with the Additional Days in Care tool | I charge a family for each day of care created with the Additional Days in Care tool. The Service Dates are simply the specific days created by the tool. |
| Semi-monthly (16th and 30th) |
There are two billing periods for this Pricing Tier Period Selection. Billing Period 1: 16th - 29th Billing Period 2: |
All scheduled days of care in the Billing Period Date Ranges | I charge a family every 16th and 30th of the month. The child attends 5 days a week (M-F). The Service Dates are every weekday in the respective billing period. |
| Semi-monthly (1st and 15th) |
There are two billing periods for this Pricing Tier Period Selection. Billing Period 1: 1st - 14th Billing Period 2: |
All scheduled days of care in the Billing Period Date Ranges | I charge a family every 1st and 15th of the month. The child attends 4 days a week (M-Th). The Service Dates all Mondays through Thursdays in the respective billing period. |
| Weekly | 7 days, starting on the First Recurring Charge Date | All scheduled days of care in the Billing Period Date Range | I charge a family every Monday. The child attends Mondays and Tuesdays. The Service Dates are every Monday and Tuesday. The Billing Period Date Range is Monday to the following Sunday. |
Applying and Editing Charges with Service Dates
Now that you've set up your settings and debit types, you're ready to being inputting charges with service dates.
Applying Charges with Service Dates
- Navigate to a student's page either by searching their name or clicking Enrollment in the main menu
- Click Programs & Billing > Charge
- When applying a charge with a debit type you've marked as Accrual, you'll see an additional input field for Service Date
- Choose the Service Date(s) for this charge and click Apply Charge to submit
Note: The service date dropdown defaults to the current date.
- In the Charges table below, you'll see a new column where Service Dates are listed
Editing Charges with Service Dates
Editing service dates requires admin or superadmin privileges. Furthermore, the system locks down service dates for the prior month for data integrity and requires an admin or superadmin to edit.
- Navigate to a student's page either by searching their name or clicking Enrollment in the main menu
- Click Programs & Billing > Charge
- In the Charges table below, click the Edit button on a charge
- You can now use the Service Dates field to edit the Service Dates after the charge has been created. Don't forget to click Update Transaction to submit your edits
- Click on the charge in the Charges table below to see the Transaction History
Reviewed and Updated on 06/24/2024 at 12:01 PM