Below are some of the iCash special features.
All invoicing, collections and banking activity related to licenses and titles is always resolved and stored at the detail license and title level. For example, any payment applied to an invoice (or to multiple invoices) would always have its payment applications resolved to the individual invoice title allocation level (invoice detail level), and any fees or other expenses associated with the transaction would also be automatically apportioned as well. This apportionment is done automatically when the operator does not designate a specific application. Apportionment is always rounded and balanced in all currencies involved so that any low level reports always foot to totals.
The goal of the iRights and iCash system is to always maintain a complete and accurate picture of all income and expense broken down by transaction, license, and title (and to right and territory if so specified in the invoice).
iCash supports invoices, receipts, and banking transactions in their source, deposit and home currencies. Invoices (particularly overages) are often in local currencies such as Danish Krona or even Vietnamese Dong. Payments to these are often received into foreign currency accounts (e.g. Euros or Hong Kong Dollars). The expenses associated with these transactions could be based in any one of these three currencies and the entire transaction and its components would have to balance in all three currencies. Special logic has been added to the receipts and banking modules to deal with the calculation problems in such situations - including the ability to accurately calculate the value of payments and expenses in source currency when they are not reported by the deposit bank.
Identifying payments in deposit bank accounts can be a challenge. Sometimes only part of the information is known, or in some cases the information is wrong or misleading. This could tie-up entries and result in management not getting accurate or timely reports of receipts. In order to speed up the process, the Bank Log System operates as a staging ground for payments and other banking transactions, allowing the activity to be reported while problem transactions can be highlighted and resolved. Once the Bank Log transaction is fully resolved it can automatically feed a cash receipt or banking transaction.
Licenses have a financial posting process where the license is evaluated for accuracy and financial completeness before invoices can be generated for its license fee schedule. During this validation process, if prior invoices have been created from this license they are compared in detail to the updated terms of the agreement and discrepancies are flagged. If the license had been previously posted and subsequently revised, all significant discrepancies with prior invoices must be resolved before the license can again be posted and invoices generated from the remaining un-invoiced fees in the license fee schedule.
The fee schedule allows each scheduled payment to specify an invoice type (user defined types such as MG, Flat Fee, etc.) as well as an allocation type ("License Fee Guarantee,” "Escalator," "Adjustment," etc.) which helps to refine the revenue allocation in the generated Invoices.
License fees can have a recurring payment schedule which begins either on a specified date or is based on a complex event calculation. The fee schedule can have a flexible definition which includes variations on the first, recurring, and last payment amounts.
Payment installment numbers can be aggregated, so the payment upon signature could be identified as installment 1 (or not) and the recurring invoices could begin on installment 2. Additional payment schedules can begin based on other scheduled events and can have their starting installment begin after the prior installment series ends.
The license-invoicing process supports an optional specification of future due date ranges and only those license fee invoices (or installments) actually becoming due in that future period are generated. To account for this, all reports such as the Contract Status Report, Aging Report, and Collections Report include the licenses’ un-invoiced amounts as well as actual invoice amounts.
License fees for licenses based on non-US$ currencies are generated in the license invoicing currency. The invoicing process will use the spot exchange rates for the currency and use that rate for the US$ equivalent of the invoice values. (This means rounding and balancing the allocations in US$ to match the overall invoice value in US$).
The financial transactions in the system (invoices, payments and banking transactions) each have an associated journal with distributions to G/L accounts.
There is a Financial Period Control File which identifies the financial periods and identifies which periods are open for transaction entry, in review for limited access by an administrator, or closed to entry.
There is a system-configurable G/L matrix which allows the definition of the default G/L entries for each kind of journal as well as the A/R assignment to invoices. (iCash supports multiple and separate A/R accounts and A/R reporting). During journal entry for a given transaction, selection of the default option will access the G/L matrix definition and select and calculate the appropriate G/L account and amount entries for the transaction. The user may accept the defaults or override them. The matrix allows for a flexible configuration which takes into consideration transaction information such as title, library, title owner, invoice type, allocation type, bank account, business entity, and bank transaction type.
The G/L matrix also supports the calculation of balancing accounts for multi-entity transactions.
The journaling system has an enhanced Journal Batch and Interface module which allows the posted journals to be swept up into period and transaction-type oriented interface batches which can be interfaced and locked.
The Bank Account Management module allows bank accounts to be associated with titles, licensors, and territories. Accounts selection during entry of license fee schedule can now validate the selection of bank account for that license’s titles.
Gray Matter LLC
65 Palatine, Suite 410
Irvine, California 92612