Transaction Spreading

Transaction spreading in Restaurant365 allows users to spread transactions across multiple periods. Transaction spreading can be utilized for AP invoices, AP credit memos, and journal entries in Restaurant365. To create a transaction spread, the transaction must first be created in Restaurant365. This training article provides a comprehensive overview of transaction spreading.

When a spread is no longer needed, ensure that you return to the transaction and update the spreading options rather than deleting the transaction. Learn more in the 'Remove Spread' section below.

Security Requirements for Transaction Spreading

Users with the following permission can perform transaction spreading on approved AP invoices and save transaction spreading settings for unapproved AP invoices:

• Accounts Payable → AP Invoices → Create AP Invoices

Users with the following permission can perform transaction spreading on approved AP credit memos and save transaction spreading settings for unapproved AP credit memos:

• Accounts Payable → AP Credit Memos → Create AP Credit Memos

Users with one of the above permissions and the associated 'Approve' permission can perform transaction spreading on unapproved transactions:

• Accounts Payable → AP Invoices → Approve AP Invoices

• Accounts Payable → AP Credit Memos → Approve AP Credit Memos

Learn more about managing permissions and custom user roles here. The Permission Access report can be used to determine which user roles or users already have these permissions assigned. Learn more about User Setup and Security here.

Create Transaction

To perform transaction spreading, first create the transaction that will be spread across multiple periods. Click the following links to learn how to create transactions:

• Create AP Invoice

• Create AP Credit Memo

• Create Journal Entry

The transaction must include the full amount to be spread.

Approve Transaction

After the transaction has been created, it must be approved before any transaction spread can occur. Spread settings can be set and saved prior to the transaction being approved, but for the spreading to occur in the future, the transaction must be approved.

Remove Spread

When deleting spreads that are no longer of use, ensure that you return to the original document to modify the spread settings. If the original transaction is deleted before the settings are modified, the system will continue to generate additional spread transactions for the previously designated amount of time as it was never technically prompted to stop.

In the event a spread transaction needs to be removed, an Accounting Manager can hover over the 'Action' menu and select 'Spread' to open the Spread Transaction window. The user then selects 'Remove Spread' to remove the transaction spreading.

Transactions that exist in a Closed Period will not be removed and deleted.

Walkthrough Step 1 - Create AP Invoice

• $42,000.00 represents the monthly rent expense of $3,500.00 for 12 periods ($3,500.00 * 12 = $42,000.00).

• The location is set, the rent vendor has been identified, and the rent account has been added to the Transaction Details.

• The user can now approve the transaction.

Spread Transaction

Once the transaction has been created with the full amount that will be spread to other periods, hover over the 'Action' menu and select 'Spread'. The Transaction is saved and approved, and then the Spread Transaction window appears.

1. Spread Recurrence - Select the desired Spread Recurrence in this selector. Options include the following:

   • None: This is the default Spread-Type value for all transactions in Restaurant365

   • Monthly - Last Day: The Spread will occur on the last day of the Month of the Date in the First Spread Date Field

   • Monthly - Same Day: The Spread will occur on the same day of the Month of the Date in the First Spread Date Field

   • Period - Last Day: The Spread will occur on the last day of the Period of the Date in the First Spread Date Field

   • Weekly: The Spread will occur every 7 days starting with the Date in the First Spread Date Field

   • Every 2 Weeks: The Spread will occur every 14 days starting with the Date in the First Spread Date Field

2. Times to Repeat - Enter the number of times the Spread will repeat

3. First Spread Date - The First Spread Date. Default value will be the Date of the Transaction being Spread. Value will update depending on selection made in Spread Recurrence

4. Last Spread Date - The Last Spread Date. Default value will be the Date of the Transaction being Spread (due to the Default Spread Recurrence being 'None'). Value will update depending on selection made in Spread Recurrence

5. Spread Account - The Spread Account represents the Balance Sheet Account that retains the amount of the transaction that has not yet been recognized with the Spread Transactions. For example, if a transaction is spreading 12 times and is for $1,200 ($100 per month) the Spread Account would initially have a balance of the full $1,200. Once the first Spread Transaction occurs, the Account would then have a balance of $1,100

6. Create X Days in Advance - Spread Recurrences can be created a set number of days before their respective post date. Enter the desired number of days here

7. Spread Amount - The Spread Amount for each recurrence of the Spread. Default amount will be the full amount of the transaction

8. Spread / Cancel Buttons - Clicking 'Spread' will perform the Spread while clicking Cancel will Cancel the Spread. Each action will return the User to the Transaction Record

Walkthrough Step 2 - Spread Transaction

• The Spread Recurrence (1) was set to Monthly - Last Day, and upon doing so, the First Spread Date (3) and Last Spread Date (4) were updated

• First Spread Date (3) was set to 6/30/2019, as the original date on the transaction was 6/19/2019 (5)

• Restaurant365 determined the last day of the Period by examining the Location (9) that was set on the transaction, and then loading the Fiscal Calendar that was set on the Legal Entity that owned the Location

• Times to Repeat (2) was set to 12, representing 12 Periods, and as a result the Last Spread Date (4) was set to 5/31/2020

• The Spread Account (6) was selected, representing the Balance Sheet Account where the remaining balance of the Spread will remain until recognized

• Create X Days in Advance (7) was set to 2. The first Spread from this transaction will be created on 6/28/2019, two days before the Spread post date of 6/30/2019 (3)

• The Spread Amount (8) is updated to represent the original transaction Amount (10) divided by the Times to Repeat (2), $42,000.00 / 12 = $3,500.00

Spread Details

Upon clicking the Spread button on the Spread Transaction window, the transaction will be Spread and a new tab, Spread Details, will appear on the transaction record. At the moment of creation, only two line items will appear on the Spread Details tab: Spread Reversal and Spread Memorized.

Spread Reversal JE

The Spread Reversal JE is auto-generated upon Spreading the transaction. This JE acts as any other Reversal JE in Restaurant365, transferring the desired balance to the desired account. Spread Reversal JEs are linked to the Spread Transaction that created them. Users can navigate to the Spread Transaction by clicking the 'Spread transaction' link in the JE Header.

Spread Memorized JE

The Spread Memorized JE behaves identically to other Memorized Transactions in Restaurant365. Spread Memorized JEs are linked to the Spread Transaction that created them. Users can navigate to the Spread Transaction by clicking the 'Spread transaction' link in the JE header. Additionally, after the first Spread Recurrence has occurred, the Transactions tab on the Spread Memorized JE will appear.

Walkthrough Step 3 - Initial JE Creation

Upon completing Step 2, the Spread Reversal and Spread Memorized JEs will be created. Click here to see the Spreading Occur in GIF form: Spreading GIF.

Spread Reversal

This JE will not change through the course of the Transaction Spreading; therefore, it will not be shown as time progresses in future steps.

Spread Memorized

The Spread Memorized JE updates the Transactions tab with each recurrence of the Spread Transaction.

Spread Account Transaction Details

Since no recurrences have occurred, the only transaction that has hit the Spread Account is from the Spread Reversal.

Walkthrough Step 4 - Spreading: Period 1

Spread Details Tab

The date of the first recurrence is two days away and the Spread Transaction has been created per the Create X Days in Advance setting.

Spread Memorized Transactions Tab

Spread Account Transaction Details

One recurrence has occurred, so in addition to the Spread Reversal amount, the first Spread Memorized transaction has posted to the Spread Account.

Walkthrough Step 5 - Spreading: Period 4

Spread Details Tab

The date of the fourth recurrence is two days away and the Spread Transaction has been created per the Create X Days in Advance setting. Four recurrences now exist on the Spread Details tab.

Spread Memorized Transactions Tab

Four Transactions exist on the Spread Memorized Transactions tab.

Spread Account Transaction Details

Four transactions have hit the Spread Account.

Walkthrough Step 6 - Spreading: Period 12

Spread Details Tab

The date of the final recurrence is two days away and the Spread Transaction has been created per the Create X Days in Advance setting. All 12 recurrences now exist on the Spread Details tab.

Spread Memorized Transactions Tab

Twelve transactions exist on the Spread Memorized Transactions tab.

Spread Account Transaction Details

Twelve transactions have hit the Spread Account, recognizing the full amount from the Spread Reversal entry.

Walkthrough Step 7 - Spreading Complete

The Spread Transaction is now complete and no further activity will occur on the original transaction.