Managing Recognition Schedules

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Table of Contents

Adding Recognition Schedules

Editing Recognition Schedules

Deleting Recognition Schedules

Recognition Schedules are policies a company uses for recording expenses or revenue (in other words, what periods, quarters, or years to assign amounts to). You can manage your company’s Recognition Schedules in the Recognition Schedule application, which is in the Automation module.

This document shows you, a Planning Maestro user, how to add, edit, and delete Recognition Schedules.

Info.png Please Note: Planning Maestro’s Recognition Schedules, Payment Schedules, and Receivable Schedules all work together. Recognition Schedules assign an amount to certain periods, quarters, or years. Payment and Receivable Schedules decide which GL Accounts are debited and credited for transactions according to a certain Recognition Schedule.

You can manage your Payment and Receivable Schedules through the Automation module.

Info.png Please Note: Planning Maestro enables you to use a fiscal calendar with 12 periods or 13 periods. You can create Recognition Schedules that spread amounts over whichever type of fiscal calendar you use.

If you use a 13-period fiscal calendar and want to create a Recognition Schedule that spreads amounts over quarters, see the Adding Quarterly Recognition Schedules with 13 Periods section of this document.

Locating Recognition Schedules

To manage Recognition Schedules, open the Automation module and select Recognition Schedules.

Step 4: The Recognition Schedules page opens. Use this page to add, edit, and delete Recognition Schedules.

Planning Maestro comes with the following default Recognition Schedules:

Even (Year) – Recognizes 1/12 of the full amount each period.

Example.png Example: $12,000 is recognized as $1,000/period for a 12-period fiscal calendar and $923/period for a 13-period fiscal calendar.

Immediate – Recognizes the entire amount immediately, within the period of the date of the transaction.

Info.png Please Note: The MACRS recognition schedules are an industry standard for depreciation. Planning Maestro records the exact percentage for each year for each MACRS Recognition Schedule (for example, 5.3% recognized the first year of the schedule).

MACRS – 10 (Half Year) – This schedule uses the MACRS (Modified Accelerated Cost Recovery System) Depreciation Table as a recognition schedule. The 10 (Half Year) schedule recognizes varying percentages of the amount each year over 10 years.

MACRS – 15 (Half Year) – Recognizes varying percentages of the amount each year over 15 years.

MACRS – 20 (Half Year) – Recognizes varying percentages of the amount each year over 20 years.

MACRS – 3 (Half Year) – Recognizes varying percentages of the amount each year over three years.

MACRS – 5 (Half Year) – Recognizes varying percentages of the amount each year over five years.

MACRS – 7 (Half Year) – Recognizes varying percentages of the amount each year over seven years.

One Period (30 Days) – Recognizes an amount 30 days after the transaction date.

Two Period (60 Days) – Recognizes an amount 60 days after the transaction date.

Adding Recognition Schedules

Step 1: To add a new Recognition Schedule, on the Recognition Schedules page, click + New Recognition Schedule.

A New Recognition Schedule pane opens on the right.

Step 2: Enter the following information in the fields provided:

R2a.png

Name – Enter a name that you and other users can easily understand in this field.

Description (Optional) – Enter a description for this Recognition Schedule in this field.

Spread Hierarchy – This field shows the setup of the Time Dimension you use in this Plan (often “Fiscal Calendar Month”).

Accrual – To set up this Recognition Schedule to include Accrual, or a buildup of a recognized amount over time, click on this toggle switch to turn it to the ON position.

Number of Accrual Periods – If you turned the Accrual toggle switch ON, an Accrual Periods field appears below. In this field, enter the number of periods that should go by before the amount accrues or builds up: for example, if you want an amount to build up for three periods before it accrues, enter 3.

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Example.png Example: A Recognition Schedule recognizes 5% of an amount per period for 20 periods. If you add Accrual to this schedule, Planning Maestro keeps track of the buildup or total amount recognized per period: 5%, 10%, 15%, and so on.

Spread Over – Click on this dropdown menu and select one of the following options to set the time period in which this amount is spread:

  • Year – Select this option to spread the amount over the 12 periods of the year.

Info.png Please Note: The number of periods available for this spread are set by the Time Dimension in this Plan. Some companies use 12-period years; others use 13-period years.

  • Quarter of Year – Select this option to spread the amount over the 3 periods in each quarter.

Info.png Please Note: If you select this option and your company uses a 13-period fiscal calendar, see the following section for more specific instructions.

  • Period of Year – Select this option to spread the amount over a single period (month).

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Spread Over Length – Enter the number of years, quarters, or months to spread this amount over, depending on the Spread Over type you chose above.

Example.png Example: If you chose to spread the amount over Quarter of Year, enter 4 to spread the amount over 4 quarters.

Spread By – Click on this dropdown menu and select one of the following options.

Info.png Please Note: These options are limited by the Spread Over type you chose: for example, if you chose Period as the Spread Over type above, you can only select Period as the Spread By type.

  • Year – Select this option to spread the amount evenly over a year.
  • Quarter of Year – Select this option to spread the amount evenly over a quarter.
  • Period of Year – Select this option to spread the amount evenly over a period.

Start Type – Click on this dropdown menu and select one of the following options:

  • Data Projection – Select this option to start this spread in the month the related Data Projection (the line item you’re spreading using this method) starts.
  • Hierarchy – Select this option to start this schedule in Period 1 of the fiscal year for this Plan (not the calendar year – for example, if your Plan’s Time Dimension has the fiscal year start in July, this schedule begins the spread in July).

Spread Type – Click on this dropdown menu and select one of the following options for the type of spread:

  • Even – Select this option to set this schedule to recognize an equal portion of this amount each individual section (period, quarter, or year) of the schedule.
  • Custom – Select this option to create a custom schedule that spreads the amount unevenly.

If you chose a Custom Spread Type, use the section at the bottom of the page to set up your spread or pattern of recognition.

R2g.png

Choose whether to use Weights for this Recognition Schedule. Weights are the visual display of how much of the amount is assigned to a quarter, period, or year. Planning Maestro calculates the percentage based on these Weights.

R2k.png

To use Weights, leave the toggle switch in the ON position.

R2i.png

The table displays a Weight column.

To stop using Weights, click on the toggle switch to turn it to the OFF position.

R2j.png

  • The Weight column disappears from the table.
  • You can assign percentages directly to each period.

Use the table to assign a Weight or Percent to each year, quarter, or period (depending on how you designed the Recognition Schedule using the options above).

Weight (if you left the Use Weights toggle switch ON) – The actual number you enter in this field does not matter; only the comparative values of the numbers you use in this column matter.

Example.png ExampleTo set up a Recognition Schedule that recognizes 20% of an amount in Period 1, 30% in Period 6 and, and 50% in Period 12, you could enter 4 for Period 1, 6 for Period 6, and 10 for Period 12, and 0 for the rest of the periods.

R4e.png

Percent (if you turned the Use Weights toggle switch OFF) – Enter the percentage of the amount to assign to each year, quarter, or period (again, depending on how you designed the Recognition Schedule).

Info.png Please Note: Depending on how your Time Dimension is set up in Planning Maestro, your fiscal calendar can have 12 or 13 periods per year.

Click Save & Exit.

R3a.png

The new Recognition Schedule appears in the list. You and other users can use this Recognition Schedule for any line item in the Operating Expenses, Revenue, Personnel, Drivers, or Adjustments applications in the Planning module.

Info.png Please Note: You can also select this Recognition Schedule to use when you create new Payment and Receivable Schedules.

Adding Quarterly Recognition Schedules with 13 Periods

If you are setting up a Recognition Schedule spread over a Quarter of the year, and your company’s fiscal calendar uses 13-periods, use this section to set up this new Recognition Schedule.

RS1b.png

Start Type – Click on this dropdown menu and select one of the following options:

  • Data Projection – Select this option to start this spread in the month that the related Data Projection (the line item you’re spreading using this method) starts.
  • Hierarchy – Select this option to start this spread in Period 1 of the fiscal year for this Plan (not the traditional calendar year.

Spread Type – Click on this dropdown menu and select one of the following options:

  • Even – Select this option to spread the amount evenly over the Spread Hierarchy, Spread Over Length, Spread By, and Start Type methods you chose above.
  • Custom – Select this option to set up a custom Spread and spread an amount unevenly.

Example.png Example: Select this option to assign 30% of a cost to Quarter 1, $20% to Quarter 2, 20% to Quarter 3, and 30% to Quarter 4.

When you recognize amounts by Quarter of Year, a No. of Periods option appears below. The radio buttons display different numbers, depending on how many quarters this schedule covers:

13-period fiscal calendars use three 3-period quarters and one 4-period quarter. Depending on how you set up this Plan’s Time Dimension, each quarter in your fiscal year could have 3 periods or 4 periods.

The No. of Periods lets you choose how this schedule works depending on whether each quarter is a three-period quarter or a four-period quarter.

Number of Periods in a Quarterly Recognition Schedule in a 13-Period Fiscal Year

Number of Quarters in the Spread Over Length

No. of Periods

Number of quarters you are scheduling the amount over

Number of Periods that could be in the number of quarters you are scheduling over

1

3 or 4

One quarter in a 13-period year could have 3 periods or 4 periods

2

6 or 7

Two quarters in a 13-period year could both have 6 periods total (two 3-period quarters) or 7 periods total (one 3-period quarter and one 4-period quarter)

3

9 or 10

Three quarters in a 13-period year could have 9 periods total (three 3-period quarters) or 10 periods total (two 3-period quarters and one 4-period quarter)

4

13

No options necessary since the schedule covers an entire year

If you schedule amounts over more than one quarter, the options below reflect the total number of periods:

Example.png Example: If the schedule covers two quarters, select how the schedule works when both quarters have 6 periods total (3 periods each) or 7 periods total (one 3-period quarter and one 4-period quarter):

Example.png Example: If the schedule covers three quarters, select how the schedule works when it has 9 periods total (three 3-period quarters) or 10 periods total (two 3-period quarters and one 4-period quarter):

SM1h.png SM1j.png

Choose how the schedule treats each type of quarter in your schedule (3-period and 4-period quarters):

  • To select how this Recognition Schedule works for the three-period quarters, click on the top radio button (3, 6, 9, etc.) and enter the weight or percentage for each period.

RS1d.png

  • To select how this Recognition Schedule works for the three-period quarters, click on the radio button on the bottom (4, 7, 10, etc.) and enter the weight or percentage for each period.

RS1e.png

Example.png Example: If you are recognizing an amount over one quarter with a 13-period fiscal calendar, you could assign 33.33% to each period in 3-period quarters and 25% to each period in the 4-period quarter.

When you finish setting up the Recognition Schedule, click Save & Exit.

The new Recognition Schedule appears in the list. You and other users can use this Recognition Schedule for any line item in the Operating Expenses, Revenue, Personnel, Drivers, or Adjustments applications in the Worksheets module.

Editing Recognition Schedules

You can edit custom Recognition Schedules you added.

Warning.png Please Note: You cannot edit or delete the default Recognition Schedules.

Step 1: To open the Recognition Schedules application, open the Automation module and select Recognition Schedules.

Step 2: Select the name of the Recognition Schedule you want to edit.

Step 3: The Recognition Schedule’s information opens on the right. Edit as needed and click Save & Exit.

  • Your edits are saved.
  • A confirmation message appears.

Deleting Recognition Schedules

Warning.png Please Note: You cannot delete the default Recognition Schedules.

Step 1: To open the Recognition Schedules application, open the Automation module and select Recognition Schedules..

Step 2: Click the Delete icon ( Delete.png ) under the Recognition Schedule you want to delete.

Step 3: Click Confirm.

R4b.png

  • The Recognition Schedule is deleted.
  • A confirmation message appears.

Info.png Please Note: If you try to delete a Recognition Schedule that a line item from Operating Expenses, Revenue, Personnel, Drivers, or Adjustments currently uses, you receive this error message:

R4d.png

To delete this Recognition Schedule, remove it from any line items that use it, and then repeat steps 1-3.

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