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The Auto Gross Up feature is used when recording an A/P invoice from an outside Operator and while you are paying a smaller portion (your %), you intend to run the charge through a JIB cycle at 100% numbers instead of the amount you are paying. Upon update of the invoice the charge will be automatically grossed up to the 100% amount with the difference credited to the Deleted Interest billing account/lease.

1. To setup the Auto Gross up Feature in A/P – Go to Company Options – A/P Entry tab – the “Gross Up Billing Entries” needs to be set to “Yes”.

2.  Make sure that the Billing Deleted Interest Account is setup in the Revenue/ Billing module / Company Maintenance / Company / Accounts tab.

 

Grossing up an A/P Invoice

1. Enter the A/P invoice for “your” amount to pay as the operator has billed you.  After you update, the system will create entries to gross up the JIB Billing amount to 100% numbers.  The Deleted Interest Account (1250) will be credited, and after the Billing cycle is updated, the 1250 account should clear to zero.

 

Journal entries that are created:

 

 

Note: When using the Un-Update Open Invoice to unpost an A/P entry after it has been grossed up, the system will automatically remove the Billing Deleted Interest line item and reduce the amount of the billing amount(s) coded to the lease to be back at the net amount.