Why do BL bills created in Receipts Entry result in adjustment journals

Owned by Knowledge Assistant
Last updated: Oct 16, 2023
2 min read
Description of Issue

Clarification needed on how Business License and Business Tax bills are created, posted and labeled on the general ledger.

Context

  • EERP

  • Business License

  • Business Tax

  • Receipts Entry

  • Create GL Journals

Cause

Informational

Resolution

When Business License bill amounts are based solely on the amount of gross receipts, the Add button in Receipts Entry (Receipts button in the Business Accounts program) triggers the creation of a zero dollar bill.  Then, when the amount of gross receipts is entered, an adjustment is made to the zero dollar bill to create the charge. This adjustment is labeled with a source of BLM on the GL.  If there is a flat charge for the license, in addition to the amount calculated by gross receipt amounts, the Add button creates the initial bill for the amount of the flat charge. This bill is labeled as a BLB source on the GL.


Examples:

Bill 1

$1234.56 gross receipt charge

This bill results in the creation of one $0 bill journal and one bill adjustment journal (BLM) in the amount of $1234.56 in the Create GL Journals program. 


Bill 2

$50 flat charge

$1234.56 gross receipt charge

Creating this bill results in one bill journal (BLB) for $50 and one Adjustment journal (BLM) for $1234.56.  


Bill 3

$50 flat charge

Flat charge only bills are often created using the Generate Accounts Receivables program, but if users choose to use Receipts Entry, then a single BLB journal will be created in the Create GL journals program in the amount of $50. No adjustment batch is created when the bill amount is only based on a flat charge. 

Additional Information

Receipts Entry bills and adjustments are added to batches in version 2017+.  Use the Batch Browse button in the Create GL Journals program to see all unposted journal batches. Scroll to the Associated Batches column on the right to determine which bill batches go with which adjustment batches.

When posting journals in the Create GL Journals program, zero dollar bills will not appear on the posting report, as they do not impact the GL. 

BLR journals were retired in versions 2017+.