Ledger and accounting

Required

• Recognise revenue as it is earned

  PRC-19

  Book a payment for service not yet delivered as deferred revenue, and move it to revenue as each day of the service period passes. Report revenue from the ledger, never from the sum of payments received.

• Report unused customer balances under US unclaimed property laws

  PRC-21 US law

  For each balance, credit or refund owed to a US customer, record the state of their last known address and the date of last activity. Report and pay it to that state when its dormancy period ends, unless the state exempts it.

Recommended

• Book every money movement as balanced double-entry postings

  PRC-18

  Record each money event as one journal entry of two or more postings to named accounts, whose debits and credits sum to zero per currency. Reject any entry that does not balance, and never update or delete a posting.

• Recognise unused credits as breakage by a written method

  PRC-20

  Write down how unused prepaid credits leave the credits liability. Either recognise expected breakage in step with credits used, or recognise the rest when use becomes remote, and post it from the ledger.

• Export balanced journals to the accounting system each period

  PRC-22

  At each period end, export the period's journal entries, summed per account and currency, to the general ledger. Each export is balanced, numbered and reconciled against the ledger totals before the period closes.