Financial Routines for G/L Entries

September, 1999 --  Responding to a request from Olympic Resource Management (ORM), CT3 has added financial routines to calculate and interface several common General Ledger entries.  ORM now has routines to build Harvest Tax Accruals, Fee Depletion, and Sales Dollar and Volume Journal entries.  

The Harvest Tax Accrual and Fee Depletion entries are based on rate tables and monthly Sales Summary Volumes.  The Sales Journals are based on Sales Summary Volume and Dollar records.  These Sales Summary records include both actual Invoice data for the period and  Accrual (proforma) / Reversal Invoices generated during the Month-End Closing process.  This approach works very well for CT3's Resource-based Customers who anchor their Fiscal Period book entries on summarized Sales Summary totals.  

Note:  CT3 had previously developed a different methodology for the International Forest Products division of Rayonier (IFP).  Since IFP is in the log trading business, they capitalize all of their indirect production costs such as Harvest Tax, Depletion, and Amortization to Inventory.  These costs are then recognized as part of the Cost of Sales, rather than being directly expensed at the time the timber is cut.  Therefore, CT3 built a structure for IFP that allows them to establish standard accrual rates.  These rates are then applied to monthly production volumes and capitalized to inventory.  IFP periodically adjusts the standard rates based on actual expenses.  When logs are sold out of inventory (even woods direct sales are passed through Inventory Costing modules), the fully costed amount (including indirect costs), is booked to Cost of Sales.