EARNED/UNEARNED INCOME

Interlink Circulation Instructions

 

Earned Income is the amount of a subscription that is earned after an issue is mailed. Unearned Income is the remaining funds that are left over until the expiration date is reached.

 

For example: a $24 one-year subscription–after 1 month, has earned $2 and the remaining $22 is unearned.

 

Subscription Revenue that is reported on the Financial Statements is NOT the same as the sales or cash collected for the month. Therefore, the Payments Report is NOT equal to the Financial Statement Subscription Revenue.

 

Interlink calculates these figures each day for every record-sort of like the interest on a loan-and gives totals for every record for month-end reports.

 

The Interlink Reports should balance with the reports from your bookkeeper. To do this accurately each month, what you post in Interlink must also be posted into SNAP. You should work WITH your bookkeeper to balance (daily, weekly & monthly). The Payments Report should balance with the Type Sale 62 report, which also matches the cash deposited into the bank. (Payments = T S 62 = Deposit). Don’t forget to make sure that all website subscription money or PayPal funds are posted into both systems.

 

When you print the Earned Income Report and the Payments Report (that is due on the 1st working day of the month by NOON), check the grand total on the Payment Report and compare it to the Pay column on the Earned Income Report. If there is a difference between these 2 numbers, print the Pay for EI Report and find it.  This report lists the payments that are used to calculate the payment column on the Earned Income Report.

 

Most of the time, Interlink will automatically calculate the income when you close the last issue of the current month. Payments posted after income is calculated is what causes the differences noted above. The payments posted after the income is calculated will show up on the Payments Report but will not show up on the Payment for EI Report or will not show up and be calculated in the Earned Income for that month-they will show up on the next month’s income. Your payment report should match what the bookkeeper has posted into SNAP and what was deposited into the bank.

 

For example: if you are a weekly Wednesday paper and it’s Friday, June 26th when you close the issue to allow you to run labels for the next week’s issue (which is Wednesday, July 1st), the system knows that it’s month-end and that income needs to be calculated. When you are ready to print the 2 reports to fax to me on July 1st (the 1st working day of the month) – income should already be calculated. To verify: print the Earned Income Report – is the date at the top (xx-xxxx) correct? If not, manually calculate by clicking on Tasks/Calculate Income and reprint the report. Any payments you post after you close the issue on Friday will be listed on the Payments Report but will not be listed on the Earned Income Report or the Payments for EI Report.

 

On the first working day of the new month-fax me the Payment Report and Earned Income-both without details-or just the last page of the Earned Income that shows the totals). I enter the figures from these reports into a spreadsheet that goes to Accounting to be balanced with SNAP totals and GL balances. 

 

 

Extra Notes:

* Do not post or refund and make corrections to any record that changes the reports you sent to central office. Example: If you close the issue and calculate the income and fax the reports and find out that a payment was posted to the wrong account. If you roll back the list, fix the payment and close again, that changes the reports that you sent to us. We will use different numbers that what Interlink has and what you start with the next month will be different than what we have.

 

* The PowerPoint slideshow that is included in this packet is used by accounting to train bookkeepers.

 

* When you print the Earned Income Report and the pay column prints with $0, first check to make sure the report printed for the correct month. Second, call Deannie and be prepared to send your list to Interlink to be fixed overnight.

 

* Refunds can effect how the Payment Report adds up the Grand Total. Interlink is updating the way this report calculates.