Conversion methods for building the initial matrix

The conversion methods you can use to build this table include the following:

Conversion method 1

Enter the full amount originally posted to each deferred income account (and subsequent regular income account) combination for each month in the past and future for which there remains a balance to be recognized.

In this case, you must enter both the original amount posted to the deferred income account and the amount that has been transferred to regular income to date.

Note: For the best results, do not use this method unless your existing records lend themselves easily to this conversion.

Conversion method 2

(Recommended) Enter just the current balance remaining in the deferred income accounts by entering the amounts that are yet to be recognized (rather than the original amount posted).

One approach to building the table is to enter only current and future dates for each entry, that is, only the months remaining across which the current balance will be distributed. The net balance yet to be recognized is entered as the Orig Amt and leave the Amt Transf'd at zero. Use negative amounts to denote a credit amount, which is the typical entry for these fields.

Example 1

Deferred income transfer entries from January-March 2002 have been generated outside of iMIS, and will be converted effective April 1, 2002. As of the conversion month, only 9 months are left of the original 12-month term, and 3 monthly amounts of $25 have been transferred from the original deferred income balance of $300. The balance yet to be transferred is $225, which you enter as a negative amount in the Orig Amt field.

Another, and perhaps the easiest, approach is to prepare a schedule that itemizes the specific amounts to be transferred each month in the future, and convert the remaining balance by entering these individual monthly amounts in separate matrix records with single-month terms. Use a negative amount to denote a credit amount.

Example 2

Using the previous example where $25 is transferred each month, enter one entry for each month from April to December (totaling nine entries) with a one-month term and an amount of $25.