Items which are linked to a location will be marked as
Is ROI\Location. The category the item is linked to will also be marked as
Is ROI\Location.
Additional fields on the category need to be completed on a ROI \ location category to ensure, if applicable, the land value and capital improvement costs are recognised.
The GL Land Valuation Account holds the land value as an asset on the balance sheet and when a location is sold, or at the time revenue is recognised an amount attributable to the individual location is recognised as cost of goods sold for the land.
The GL Capital Improvement valuation account holds the value of improvements to the location or area as an asset on the balance sheet and when a location is sold, or at the time revenue is recognised an amount attributable to the individual location is recognised as cost of goods sold.
The GL Land and Capital Improvement COGS account is the other side of these transactions.
That is, when the land is sold, the value is reduced in the balance sheet of the land and capital improvement valuation accounts as shown above and increased by that same value in the GL Land and Capital Improvement COGS account in the profit and loss.
Take a look at this example.
The land value for this location is costed at $1250 and the cost of capital improvement attributed to this location is $225.
At the time revenue is recognised for selling this location, the asset land valuation account reduced by $1250 and the GL Capital Improvement valuation account reduced by $225 on the balance sheet.
Likewise, the COGS account increased by $1250 and $225 in the profit and loss, when the land is sold or at the time revenue is recognised.
Revaluation
Revaluations occur from to time to time to increase or decrease land and / or capital improvements values attributable to a location /s. The GL Valuations clearing account indicates which general ledger account the revaluation will be cleared to.
This category setting is not associated to the at-need and pre-need sales general ledger processing logic. Instead, it specifically relates to where an area and the associated locations within the cemetery grounds are revalued.
