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Intersite Accounting
CSI Software’s SpectrumNG has mechanisms in place to automatically process accounting trans­fers from one site to another as the need arises. This typically takes place during the following three cases.

  Intersite Accounts Receivable (A/R) Transfers - When members from one site purchase a product at another site and charge it to their accounts

  Intersite Series Sales Transfers - When members purchase a deferred series sales package at one site and redeem a session at another site

  Intersite Gift Card Transfers - When members purchase a gift card at one site and redeem it at another site

In all of these situations, you have the cash for a transaction sitting at one site and the revenue for a transaction sitting at another site, and you need to transfer the cash to the site where the revenue is located. Spectrum NG handles this by creating a series of Intersite Receivables (money other sites owe you) and Intersite Payables (money you owe other sites).

Using these tools and accounts, Spectrum NG can help you manage all of your Intersite Accounting, whether you have two sites or 200!

Intersite A/R Transfers

Here is the situation: A member from Site 1 goes to Site 2 and purchases a product for $5 and charg­es it to his account. The revenue for the product is at Site 2, but the member’s A/R balance is at Site 1. Also, when the member’s auto pay is drafted during the billing process, that cash will be at Site 1. So, how do we move the cash over to Site 2, where the revenue is located?

You start by creating an Intersite A/R Transfer account (asset) and an Intersite Accounts Payable (A/P) Transfer account* (liability) in your General Ledger (G/L) and by selecting these accounts in the Financial System Setup screen. When you complete this transaction, the system will credit the rev­enue and debit the Intersite A/R Transfer at Site 2, indicating that Site 2 now has a receivable from Site 1. At the same time, it will debit the member’s A/R and credit the Intersite A/P Transfer at Site 1, indicating that he has a payable to Site 2. As you can see, each Intersite A/R Transfer at the sale site will have a corresponding Intersite A/P Transfer at the member’s home site.

When you post A/R to the G/L for a period, you will see all Intersite A/R Transfers and all Intersite A/P Transfers for each site in the posting report. You would then use your A/P software to write checks (or otherwise transfer funds) from one site to another for the amount that each owes. When you write this check, you would credit your Cash account and debit your Intersite A/P Transfer account in your accounting software (Spectrum NG does not do this.). When the sites receive the checks, they will debit their Cash accounts and credit their Intersite A/R Transfer accounts in their accounting software, indicating that the balance owed has been paid.

Intersite Series Sales Transfers

A similar problem arises when Site 1 sells a series sales product, but a member redeems some of those sessions at other sites. The cash for the package is at Site 1, but the revenue is at other sites, and so Site 1 owes the other sites cash for those sessions.

Once again, we start by creating an Intersite Series Sales Receivable account* (asset) and an Inter­site Series Sales Payable account* (liability) in the G/L and by selecting them in the Financial System Setup screen. Any time a deferred series sales product is sold, the system debits the Cash account and credits the Deferred Revenue account at the sale site. When members redeem sessions at another site, the system debits the Deferred Revenue account and credits the Intersite Series Sales Payables account at the sale site, indicating an amount owed to the redemption site. It will also debit the Intersite Series Sales Receivable and credit the Revenue account at the redemption site, indicat­ing an amount owed from the sale site.

When you post A/R to the G/L for a period, you will see all Intersite Series Sales Receivables and all Intersite Series Sales Payable for each site in the posting report. Just like the Intersite A/R Transfers, the sites would write checks or otherwise transfer funds to each other, recording the payments in their A/P software as a credit to cash and a debit to the Intersite Series Sales Payable account. When the other sites receive the payment, they record it in their accounting software as a debit to cash and a credit to the Intersite Series Sales Receivable account.

Intersite Gift Card Transfers

Gift Cards purchased at one site and redeemed at another site are essentially identical in the ac­counting process to the Intersite Series Sales Transfers.** When a gift card is sold, the cash for the gift card is at the sale site, as is the outstanding gift card amount (in a liability account). Just as be­fore, we start by creating an Intersite Gift Card Receivable account (asset) and an Intersite Gift Card Payable account* (liability) in the G/L and by selecting those accounts on the Financial System Setup screen. When members redeem gift cards at a site other than the sale site, the system will credit the Revenue account for the item purchased and debit the Intersite Gift Card Receivable account at the redemption site. At the same time, the system will debit the Outstanding Gift Cards account and credit the Intersite Gift Card Payable account at the sale site.

When you post A/R to the G/L for a period, you will see all Intersite Gift Card Receivables and all Intersite Gift Card Payables for each site in the posting report. Just like the Intersite A/R and Intersite Series Sales Transfers, the sites would write checks or otherwise transfer funds to each other, record­ing the payments in their A/P software as a credit to cash and a debit to the Intersite Gift Card Pay­able account. When the other sites receive the payment, they record it in their accounting software as a debit to cash and as a credit to the Intersite Gift Card Receivable account.

*Technically, you could create one Intersite Receivable Transfer account and one Intersite Payable Transfer account for all three of these situations. However CSI recommends creating separate ac­counts for easier reconciliation and auditing.

**Since you accept cash at one time and recognize the revenue for that cash at another time (when the gift card is redeemed), gift cards are by definition a form of deferred revenue, thus making the ac­counting identical to the way the Intersite Series Sales Transfers work.