Right of Interment Items (ROI)
Cost - Land Values / Cost - Capital Improvement & Cost of Goods Sold (COGS)
When selling a location with an ROI location item linked, there are a few other general ledger transactions that may occur.
See the extract for a location summary shown below.
Roman Catholic, Row C, Grave 014 has the item R-1000 linked to it.
You will also see the Cost Summary shows a Cost – Land Valuation and a Cost – Capital Improvement.
Where the land associated to a location has a value held on the balance sheet, the cemetery can apportion the land cost to each grave and upon recognition of revenue trigger the automatic reduction in the general ledger for land cost with the corresponding value going to the COGS account.
An example of where we might see the need for transactions processed against the Cost-Capital Improvement account could be where an area is established in a cemetery with pre-installed concrete beam in a burial area designed for plaques on beams.
The capital cost to install the beam can be apportioned across the available graves and allocated to each sale (again at the time of revenue recognition), reducing the balance sheet value (capital improvement), with the corresponding transaction going to COGS on the Profit & Loss Statement.
There are some differences with timing of these general ledger transactions when Advanced Revenue Recognition is switched on.
The timing is in line with revenue recognition methods explored earlier.
We will explain each method below in more detail.
On Redemption
At the time of invoice, as with revenue recognition, the land cost & capital improvement costs and corresponding COGS do not trigger a value to be posted to the general ledger.
At the time of receipt the land cost & capital improvement costs and corresponding COGS do not trigger.
At the time of redemption the land cost & capital improvement costs and corresponding COGS are triggered meaning the associated cost is captured in the same period as the revenue being recognised, the same timing as explained above in the On Redemption section.
On Invoice
At the time of invoice, as with revenue recognition, the land cost & capital improvement costs and corresponding COGS are triggered.
Meaning the associated cost is captured in the same period as the revenue being recognised, the same timing as explained above in the On Invoice section.
On Payment in Full
At the time of invoice, as with revenue recognition, the land cost & capital improvement costs and corresponding COGS do not trigger a value to be posted to the general ledger.
At time of receipt, as with revenue recognition, the land cost & capital improvement costs and corresponding COGS are triggered, the same timing as explained in the On Payment in Full section.
