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End of Day What to Expect
It is important to close out the daily transactions and balance Theatre Manager on a frequent basis. If this occurs 365 days each year and the GL entry created by Theatre Manager is posted to the organization's accounting system, there should be no problems with the annual audit. This is based on making the GL entries in the accounting software exactly the same as TM creates them.
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Theatre Manager is an accrual accounting system!
The Accounts Receivable account (A/R) is a revolving account to manage sales and payments. Each sale (ticket, donation or pass) increases the sales account for that item AND increases the A/R account. When the payment is received, the asset account for that payment is increased while A/R is decreased. If everything is paid for, then the net change to A/R on a daily basis will be zero. If an item is not paid for (i.e. pledge, group ticket sale, or reservation), there will be an increase in A/R on that day. At some subsequent day, once the order is paid for, there will be a decrease in A/R. |
Typical GL Entries Seen at End of Day
| Posting Type | Debit | Credit | GL Entry Type |
| Sales of Items | |||
| Ticket Sale | A/R | Deferred Revenue for Event | Sales Posting (SP-xxxxxx) |
| Donation | A/R | Earned Income for Donation Campaign | Sales Posting (SP-xxxxxx) |
| Pass or Gift Certificate Sale | A/R | Liability for unused Passes | Sales Posting (SP-xxxxxx) |
| Membership Sale | A/R | Earned Income for Membership | Sales Posting (SP-xxxxxx) |
| Payments | |||
| Credit Card, Check or Cash Payment | Visa, MCard or Bank account | A/R | Deposit (DP-xxxxxx) |
| Redemption of Pass | Liability for unused Passes | A/R |
Deposit (DP-xxxxxx) |
| Transfer to Restricted Account | Asset Account for restricted donation campaigns | Main Bank Account | Deposit (DP-xxxxxx) |
| Automatically Generated Postings | |||
| On day after event, transfer from deferred to earned revenue | Deferred Revenue for Event | Earned Income for Event | Sales Posting (SP-xxxxxx) |
| On year end Rollover | Deferred income for donations dated in a future fiscal year | Earned Income for the campaign | Sales Posting (SP-xxxxxx) |
| Manual GL Adjustments | |||
| Adjustments to GL | Any Account, usually not A/R | Any Account, usually not A/R | GL-xxxxxx |