1. BAR 101-2006 -Customer Accounts -Accounts Receivable -Cashiering Presenter:Tim Henry, CPA Green River Community College Financial Analyst Accounting Instructor

2. Overview For today’s training we have tried to add some of both… Frame work-broad Purpose of Customer Accounts How charges get onto a customer’s account Some of the tables associated with Customer Accounts How accounting entries are created from Customer Accounts Customer Accounts reports Updating Customer Accounts and Ledgers

3. Overview ….some of both  Important detail information that is………  Fee Calculation-Linda and Becky  Sub Ledgers-Mary and Teresa

4. Overview Goals for this part of the training Basic understanding of Customer Accounts Stimulate ideas and questions that you can take back and work on. Provide a couple of examples Debt type table Charge status table Transaction code table Overview of Customer Accounts.

5. Customer Accounts Database What is the purpose? To record charges, payments, and refunds To provide an account balance and history To generate invoices and reports

6. Customer Orders Customer Accounts Walk up orders Mailed in orders Phoned in orders On-line orders

7. Customer Orders = Charges Student Management System (SMS) SM7001 FMS Customer Accounts Cashiering Screen BM1600 Customer Activity Maintenance Screen BM1620 Fee Calc Tables purpose… to record charges… how do charges get on the CA Tables

8. Customer Payments WEB Credit Card or Echeck (Cashiering Batch ) FMS Customer Accounts Cashiering Screen BM1600 Customer Activity Maintenance Screen BM1620 purpose… to record payments… how do payments get on the CA

9. Customer Account Extended the customer credit? FMS Customer Accounts Refused to ship the order? Order shipped but partial balance still owing What if the charges (orders) are not paid? 3 rd Party Voucher /Letter Accounts Receivable Unofficial Enrollment Dropped from Classes Unofficial Enrollment Partial Payment (?) Accounts Receivable

10. Customer Refunds FMS Customer Accounts The customer returns the order...drops the class… decides not to take the test…overpaid and is due money back SMS refund process 100%-80%-40% Cashiering Screen- credit charge created Cashiering Screen- prepayment

11. Customer Accounts Database Account Balance and History The CA database provides for gathering all if this information (charges, payments, refunds) into one customer’s record or account.

12. Customer Accounts Database Account Balance and History  Balance or history since last purge date (archive/purge process…) Balance or history by year/quarter Balance or history by fee code  Primarily BM 1625-Customer Account Activity  BM 1620-Customer Activity Maintenance  BM1600-Cashiering Screen-balance

13. Customer Accounts Database Definition…tables Fee Code-two character abbreviation for account code (more detail in fee calculation training) Debt Type-two character designation that determines transaction code Transaction Code-two character code that determines general ledger debit (s) and credit (s) Charge Status-Two character designator of where the charge is in sequence (cycle)

14. Customer Accounts Database Definition…tables Unofficial charge-unpaid charge that has not been recorded in the accounting records. The charge only exists in Customer Accounts Database. It is like the order has been placed, but no payment or arrangement for payment has been made. Are we going to deliver the service or not?

15. Customer Accounts Database Accounting Entries A student registers for class and the charges generated from the fee calculation are posted to the customer account….initial charge status is unofficial Scenario 1. They pay the amount due Scenario 2. They have a third party sponsor

16. Customer Accounts Database Accounting Entries Charge Status Table--BM1025 System Defined User Defined Add new charge status or change charge status UO (Unofficial) must always be first and PD (Paid) must always be last in sequence (cycle)

17. Customer Accounts Database

18. Charge Status: Scenario 1 By processing the payment you are changing the status: FROM: UO-Unofficial: No accounting entries have been created for this charge To: PD-Paid: Accounting entries created

19. Customer Accounts Database When the status of the charge changes, the Debt Type Table-BM1020 determines the transaction code by looking at the change from charge status UO to PD (and takes into consideration the fiscal year) and identifies 023 as the Transaction Code. Default debt type 01

20. Customer Accounts Database

21. The Transaction Code Table-GA1093 identifies 1110 (cash) as the GL to debit, and 3210 (cash revenue) as the GL to credit. A transaction has been prepared and batched to record the revenue (D batch-Cashier)

22. Customer Accounts Database Accounting Entries Transaction Code Table—GA1093

23. Customer Accounts Database Simple example, Follow this flow from charge status to debt type to transaction code, to batch. Recognize that there are other components of these tables that I have not touched on. It would take hours to go through the detail. Think framework, add detail from user manual

24. Scenario 1 Student Registers Fee Calculation Charges Posted to Customer Account Payment Posted to Customer Account

25. Scenario 1 Q: What is the Debt Type? A: 01 (None in BM1620, BM1626, BM1001) Go to default 01 Debt Type Table

26. Scenario 1 Debt Type Table Q: What was the Charge Status? A: Unofficial Q: What is the status being changed to? A: Paid Q: Is it in this fiscal year? A: Yes Transaction Code is 023 Go to Transaction Code Table

27. Scenario 1 Transaction Code table Q: What is the fund type? A: 5 Debit GL 1100 and Credit GL 3210 Q: Are the other transaction edits okay? A: Yes Q:Should this be posted to files other than the GL ? A: Yes Batch transactions in D?

28. Customer Accounts Database Accounting Entries A student registers for class and the charges generated from the fee calculation are posted to the customer account….initial charge status is unofficial Scenario 2. They have a third party sponsor A little more on Charge Status

29. Customer Accounts Database Charge Status: Accounts Receivable UO-Unofficial: No accounting entries have been created for this charge UB-Unbilled: Accounting entries have been created but no invoice has been prepared IN-Invoiced: Accounting entries have been created and invoice prepared

30. Customer Accounts Database Charge Status: Accounts Receivable The charge has a status of UO on the student account. The charge is transferred from the student account to the 3 rd party account. The debt type of the 3 rd party determines the initial status when adding a new charge –debt type 12 = UB.

31. Customer Accounts Database Charge Status: Accounts Receivable UB-Unbilled: Accounting entries have been created, debt type table = 051-1318/3205 FA or D? batch, but no invoice has been prepared The charge status remains UB until ?...billing date, end of refund period, quarterly….

32. Customer Accounts Database Charge Status: Accounts Receivable The charge has a status of UO on the student account. Transferring the charge to the 3 rd party UO- Unofficial: No accounting entries have been created for this charge UB-Unbilled: Accounting entries have been created but no invoice has been prepared IN-Invoiced: Accounting entries have been created and invoice prepared

33. Customer Accounts Database Accounting Entries Debt type table identifies 051 as the transaction code Transaction code table identifies GL debit/credit….

34. Customer Accounts Database Charge Status: Accounts Receivable When you are ready to bill this 3 rd party, there is a job running every night ( or you can turn it on/off ) that will: Identify and extract the charge Change the status to IN (creating accounting entries)-assign invoice date and number. Prepare an Invoice and Report FG088D Customer Accounts Billing This job group extracts customer accounts charges and produces various billing documents

35. Customer Accounts Database Charge Status: Accounts Receivable The Billing Schedule Table-BM1023 (as determined by hierarchy) determines which charges get included in the job This one is the quarterly schedule and runs everyday to pick up any A563 charges. When we bill the bulk of the 3 rd parties near the end of the quarter we will change that over to A564

36. Customer Accounts Database Charge Status: Accounts Receivable When you are ready to bill this 3 rd party, there really is only one right way IN-Invoiced: Accounting entries have been created and invoice prepared

37. Customer Accounts Database Charge Status: Accounts Receivable When you are ready to bill this 3 rd party, there really is only one right way IN-Invoiced: Accounting entries have been created and invoice prepared

38. Scenario 2 Student Registers Fee Calculation Charges Posted to Customer Account Charges Transferred from Student Account to 3 rd Party Account (Auto App-Manual)

39. Scenario 2 Q: What is the Debt Type? A: 12 (None indicated in BM1620) BM1626 Debt Type is 12, Go to 12 Debt Type Table

40. Scenario 2 Debt Type table Q: What was the Charge Status? A: Un billed Q: What is the status being changed to? A: Invoiced Q: Is it in this fiscal year? A: Yes Transaction Code is 052 Go to Transaction Code Table

41. Scenario 2 Transaction Code table Q: What is the fund type? A: 5 Debit GL 1312 and Credit GL 1318 Q: Are the other transaction edits okay? A: Yes Q:Should this be posted to files other than the GL ? A: Yes Batch transactions in 24-..

42. Customer Accounts Database UO UB IN Transfer charge –FA or D batch or Change charge status-23 batch Change status to IN and invoice-24 batch Now what…..?

43. Customer Accounts Database UO UB IN I2 DQ Accounts Receivable aging and follow up I2-Second Invoice-no accounting entries DQ-Delinquent-no accounting entries CA-Collection-no accounting entries WF-Write off-accounting entries

44. Customer Accounts Database Charge Status: Payment Schedule BM1021 Automatic update of charge status-generates report BM1759 and creates batch 23, if accounting entries are needed!

45. Customer Accounts Database At GRCC we said, we want A report each day that identifies the accounts that remain unpaid 30 days after the invoice date… And 45 days,….and 90 days

46. Customer Accounts Database This automatic update will identify and extract charges that fit into the payment schedule parameters, and change the status as indicated. The debt type table determines no accounting transactions (blank) Report is used to identify accounts for follow up.

47. Customer Accounts Database Charge Status: Accounts Receivable The charge has a status of UO on the student account. Transferring the charge to the 3 rd party UO- Unofficial: No accounting entries have been created for this charge UB-Unbilled: Accounting entries have been created but no invoice has been prepared IN-Invoiced: Accounting entries have been created and invoice prepared

48. Customer Accounts Database Charge Status

49. Customer Accounts Database How do we select charges to be include in the automatic update of charge status job? Payment Schedule BM1620 BM1001 BM1626 ….drives to BM1021-Payment Schedule and follows the sequence from there

50. Customer Accounts Database Accounting Entries Debt Type Table--BM1020 From Status To StatusCurrent Deferred

51. Customer Accounts Database Accounting Entries Debt Type Hierarchy

52. Customer Accounts Database At GRCC we said, we want A report each day that identifies the accounts that remain unpaid 30 days after the invoice date… And 45 days,….and 90 days

53. Customer Accounts That Payment Schedule will bring a charge to your attention three times if it remains unpaid. Daily report BM1759 Together with the aging report-BM1710 = effective AR monitoring and follow up

54. Customer Accounts Reports Customer Accounts Aging Report-BM1710 What do you want to see? BM1022-Aging Format Table Reference Dates Age by invoice date not charge date (system assigns) Charge Status

55. Customer Accounts Database Charge Status: UO-Unofficial: No accounting entries have been created for this charge UB-Unbilled: Accounting entries have been created but no invoice has been prepared IN-Invoiced: Accounting entries have been created and invoice prepared

56. Customer Accounts Reports Customer Accounts Aging Report-BM1710 What do you want to see? What How many different reports? Charge status

57. Customer Accounts Reports Customer Accounts Aging Report Job- BM1710J What do you want to see? Sort Format Select by Debt Type…. One report to include only student accounts—make all student charges debt type SA on charge in BM1620

58. Customer Accounts Reports Customer Accounts Aging Report Job- BM1710J What do you want to see? Sort Format Select by Debt Type….

60. CA SL GL Updating records Customer Accounts is updated immediately-real time-right now—If the change in charge status results in accounting entries, then the entries will be batched and manually or automatically released. Cashiering = D? Batch ID Customer Accounts Maintenance = ?? (individual’s) Batch ID Billing Schedule = 24 Batch ID Payment Schedule = 23 Batch ID Third Party Sponsorship = FA Batch ID (Auto App)

61. CA SL GL Updating records Accounts Receivable Sub Ledger is updated once batch is released. General Ledger is updated during the nightly posting routine.

62. CA = SL = GL The three should balance…..everything in the AR Sub Ledger is supported by the Customer Accounts (by Customer Account number)..everything in the AR General Ledgers is supported by the AR Sub Ledger (by APR/PRG/ORG.)

63. CA = SL = GL It takes a lot of work…. Summary level balance, does SL = GL? Reconcile by GL total 1312, 1318… Reconcile by Apr-Prg-Org and GL

64. CA = SL = GL Timing differences- Consider what is in CA that would not be on AR SL or GL…Unofficial charges and those that have been written off. Rolling the AR SL up by Apr-Prg-Org to the GL Rolling the AR SL down by customer ID to the CA

65. Sub Ledger Later, Mary and Teresa are going to talk about Sub Ledgers. One of the keys to reconciling is to ensure that all charges that should purge are doing so. There are many reasons why a charge won’t purge, some very simple, others not so much. Keeping the SL “clean” greatly reduces the problems and time spent reconciling.

66. BAR 101-2006 -Customer Accounts -Accounts Receivable -Cashiering Purpose….. Charges, payment,refunds Balance and history Invoicing and reports Tables………… Charge Status Debt Type Payment Schedule Billing Schedule

67. BAR 101-2006 Reports….. BM1759-Change of Charge Status BM1710-Customer Accounts Aging Accounting entries. Combination of debt type and charge status Batched Record updating