Description

To create a receivable as an Invoice where the expectation is to capture some form of revenue paid in a crypto asset, SoftLedger customers create the Invoice in the AR module in the fiat equivalent, as well as a Crypto Deposit to increase the quantity of the asset in the Crypto module. While this is a two step approach, it is best practice to keep the Financial, AR, and AP modules represented in fiat. Follow the steps below in an example of receiving 100 USDT for services sent out as a receivable.

• Create an Intermediary Ledger Account
• Create the Invoice
• Create the Cash Receipt
• Apply the Cash Receipt
• Approve the AR Payment
• Create the Crypto Deposit
• Concluding Financial Impact

Create an Intermediary Ledger Account

Throughout the process there will be an intermediary account used so that the result of this two step process is to Debit the Crypto Asset Ledger Account and Credit the Revenue Account.

For our example, the first step is to create the intermediary Ledger Account under Financial>Accounts:

Create the Invoice

In the same manner as creating fiat Invoice, add an Invoice with all relevant details, where the amount is equal to the total fiat amount of crypto received (crypto asset quantity multiplied by crypto asset price).

 In our example, the second step is to create the fiat equivalent Invoice as per below:

Resulting financial impact in associated Journal Entry:

• Dr. Accounts Receivable $100
• Cr. Revenue $100

Create the Cash Receipt

Once the Invoice has been Issued, and the asset has been received in your company's custody, you can create the cash receipt (in the same manner as you would create a cash receipt when cash has hit your bank account).

The Cash Receipt created would look like this:


Note: The number here is created by the user, so you can take the transaction hash ID if available from a blockchain, or any other unique identifier from an external source to populate the Number field.

Resulting financial impact:

• No financial impact here unless the System Setting to "Post Journal on Cash Receipt Creation(Unapplied Cash)" is enabled

Apply the Cash Receipt

Once the Cash Receipt has been created, apply it against the Invoice:

Notes:
-Searched in the Cash Receipt dropdown field by the Transaction Hash ID
-Utilized table filters for the customer and the asset in the Reference field
-Utilized the Autofill option to fill in dates and amount to pay

Resulting financial impact in associated Journal Entry:

• No financial impact

Approve the AR Payment

Approve the Payment created from Applying the Cash Receipt:
Note: If you have the System Setting to Auto-Approve AR Payments enabled, this step is not needed.

Resulting financial impact in associated Journal Entry:

• Dr. Crypto Receipts $100
• Cr Accounts Receivable $100

Create the Crypto Deposit

Once the Invoice has been issued, the cash receipt created and applied, and the payment approved, the crypto deposit to record the increase and cost basis of the acquired crypto asset can be added.

The Crypto Deposit would look like this:


Notes:
-The Ledger Account is set to Crypto Receipts (likely overriding a Wallet default setting)
-The Customer and TX Hash and Reference and Notes fields have been added with their respective details for easier matching
-The date matches the Cash Receipt and total amount (in this example) equals the receivable exactly
-Be sure to run the Cost Basis and Journals process through to this transaction after creating

Resulting financial impact in associated Journal Entry:

• Dr USDT 100
• Cr Crypto Receipts 100

Concluding Financial Impact

Once all steps have been completed, the financial impact would follow this in summary:

• Resulting Journal Lines (in separate Journals):
  • Dr. Accounts Receivable $100
  • Cr. Revenue $100
  • Dr USDT Asset $100
  • Cr Crypto Receipts $100
  • Dr. Crypto Receipts $100
  • Cr Accounts Receivable $100
• Concluding financial impact:
  • Dr USDT Asset $100
  • Cr. Revenue $100