Grace Due

The Grace Due report lists subscriber grace activity that occurred during a specified date range. If you recognize earned revenue for grace days delivered to subscribers while they are still in their grace period (a Business Rules consideration), running the report in update mode will also create Grace Accrual transactions.

Because Transaction Processing can create grace owed transactions, final transaction processing must be complete through the end date of the report.

If any of the following activities have taken place since the last day of the period, a Historical Unearned or Grace Due should not be run.

• Change in the Premium Day Calendar

• Run any Premium Day processing

Note: If you are using Premium Day or a wallet of any kind, it is time sensitive.

The Grace Due report creates the following transactions when run in update mode:

• A Grace Accrual transaction is created with a transaction date matching the report’s end date. Grace Accrual is a running total of the amount of grace that a subscriber has accumulated.

• A reversing Grace Accrual transaction is also created with a transaction date of the end date of the report plus one day, which causes it to be picked up in the next period.

• A set of GL transactions is created for the total amount of grace accrued, with a transaction date matching the report’s end date.

• A set of reversing GL transactions is created with a transaction date of the end date of the report plus one day, which causes them to apply to the next period.

The following table describes how Grace Accrual is calculated on the Grace Due Report. In this example, a subscriber is on a 2.60/week rate and, while in grace, will accumulate 2.60 in new grace each week. Each time the Grace Due report is run, the total grace accrual is updated, and the new, prior, and total grace accrual amounts are shown. When a payment is made, the total grace accrual will be reduced, and the new amount shown will be the reversing entry from the previous period’s total. The table also shows how earned revenue will be reported in this situation.

a.	New grace accrued in this period (Total Grace Accrual - Prior Grace Accrual); shown as “New Grace Accrual” in the totals at the bottom of the report and in the “Amount Owed” column in the in the second section of the report.
b.	Grace accrual reported in the previous period; shown as “Prior Grace Accrual” in the totals at the bottom of the report.
c.	Actual Grace Accrual amount written to the GL from the expire date to the end date of the report; included in the totals at the bottom of the report.
d.	Total revenue from the previous expire date to the end date of the report.
e.	Unearned Revenue + Total Grace Accrual - Prior Grace Accrual, because of the reversal from the previous period.

In the final period of this example, subscriber revenue in the General Ledger will be debited 7.80 (the grace accrual amount) and credited 10.40 for four weeks at a 2.60 weekly rate, resulting in a net credit of 2.60 for the current week.

The Grace Due report contains two sections. The first section lists subscribers with grace owed amounts. Subscribers who are still in their grace period will not be listed in this area of the report unless they have grace owed from a previous subscription period.

The second section of the report lists subscribers currently in their grace period.

To produce the report:

1. Select Grace Due from the Subscriber menu to display the Grace Due Report window.

   
2. Click Add and complete the following fields.

   Field	Type	What to enter
   ALL ACCOUNTS	yes/no	Indicate whether the Grace Due report should be run for all accounts. If you enter “n” here, specific accounts or account ranges can be entered in the Account Ranges Entry window that opens after all of the fields are entered.
   PRODUCT	setup	Enter the product for which to list grace activity. Enter “*” to multi-select products.
   START DATE END DATE	date	Enter a date range for the report. The report will include all new grace activity on or within these dates and show grace outstanding as of the end date. You can run the report for any date range (month, week, day, etc.). Note: In order to populate the “Previous Grace Owed” column of the report, you must run the report with a Start Date that is one day after the End Date of a previous report (and the previous report must have been run with Update set to “y”). If you have previously run the report with the same End Date, you will be prompted to indicate whether the grace owed file for that date should be overwritten.
   SORT OPTION	predefined	Indicate whether the report should be sorted by Account Number, Area, or Zip code. If you select “area”, the sorting will be by area, region, distribution zone, district, and route.
   ROUTE TOTALS	yes/no	If the report is being sorted by area, indicate whether subtotals should be printed by route.
   UPDATE	yes/no	Indicate whether this grace due information should update the grace owed file. This will also create grace accrual transactions, if you have Business Rules set to recognize earned revenue for grace days while the subscriber is still in the grace period.
   EXPORT	yes/no	Select this checkbox if you want to create an export file.
   FILE FORMAT	setup	Select the file map to use for this export. A file map must be set up previously.
   FILE NAME	open	You can accept the default file name or modify it.

3. Click OK and then Continue to produce the report.

The columns on the Grace Due report are described below.

Column	Definition
Account, Name, Account Status	The subscription ID, name, and status of the subscriber are displayed in these columns. In addition, the subscriber’s address and phone number will appear below the name if the Business Rule, Should the subscriber’s address, credit status, and grace dates show on the top of the Grace Due Report?, is set to “yes”.
Previous Grace Owed	The subscriber’s grace owed amount from prior periods appears in this column.
Grace Paid	If the subscriber paid off a grace owed amount during this period (typically by sending in a payment), the grace paid will be listed here.
Bad Debt Paid	Grace can be written off to the General Ledger but not to Customer Service. If a subscriber paid off a grace owed amount that had already been written off to the GL, the grace paid amount will appear in this column.
Grace Written Off	If the subscriber had their grace owed written off during this period, the amount of the grace writeoff will be displayed in this column. If you write off grace to the General Ledger and Customer Service separately, only amounts written off to the GL will be included.
New Grace Owed	Grace owed amounts that were created for the subscriber in the current report period will be displayed in this column.
Reinstated Grace Owed	If a payment was canceled or not posted because of non-sufficient funds in this period, and this created a grace owed amount, the grace owed will be displayed in this column (rather than in New Grace Owed).
Current Grace Owed	The total grace owed by the subscriber will be displayed in this column. This will be: Previous Grace Owed - Grace Paid - Bad Debt Paid - Grace Written Off + New Grace Owed + Reinstated Grace Owed
Credit Status	The subscriber’s credit status (e.g., Active, Expire Stopped, In Grace Period) appears on the second line, below the Bad Debt Paid column, if the Business Rule shown above is set to “yes”.
Grace Dates	The dates for which the subscriber has grace owed amounts are shown below the New Grace Owed column if the Business Rule shown above is set to “yes”.
Discounts	If the subscriber rate has a discount, the discount amount for each column will be displayed on the third line.
Columns in the Second Section of the Report	The second section of the report contains the subscription ID, name, current status, credit status, expire date, end grace date and invoice flag for subscribers currently in grace. The value of the grace days the subscriber has received within this reporting period is displayed in the Amount Owed column. This is the new Grace Accrual for the period, and it can be a negative amount. The Discount is the new discount for the period.

Example—Grace Due Report