1. Report of Collections Class
State of Indiana
Instructor: Gowri Kulanthaivel (GMIS)

2. Agenda Welcome Expectations Overview of Changes
Report of Collections Process
Special Payment Scenarios
Review Deposit Accounting
Import Payment Deposits
Conclusion

3. Expectations Class will be focused on teaching the ENCOMPASS system:
Business process changes will be discussed but main focus will be on the system.
Learn to do a Deposit, ROC, Create accounting entries and Agency approve
Practicing with hands-on exercises.
Class will be interactive
We will be using a training database.

4. Security in ENCOMPASS
Attending this class DOES NOT automatically give you the needed access.
Access is only given through a GMIS issue request which should be submitted by the agency contact (in some cases this is the manager of the department; other agencies have 1 or more designated contacts). 

5. Training Materials Materials available on ENCOMPASS website
ENCOMPASS > ENCOMPASS Documents > Training Documents > Report of Collections (ROC)
Materials include:
Presentation, Exercises and Work Packet , Training Manual & Job Aids
State Accounting Manual
ENCOMPASS > ENCOMPASS Documents > Accounting Manual > Chapter 4 Accounting for Revenue

6. GMIS Support “Report an Issue” link on the Sign In page
“Report an Issue” link under the ENCOMPASS menu
Call HELP and a ticket will be created for you 6

7. Ground Rules for Training
Put cell phones on vibrate.
Ask questions.
Help thy neighbor – with permission.

8. Overview
Agencies will enter their own deposits into the ENCOMPASS Accounts Receivable module.
Deposits are automatically marked as Journal Directly by default.
The ROC form is a report printed from within ENCOMPASS
Agencies will enter their own accounting entries into the ENCOMPASS Accounts Receivable module.
All cash entries are system-generated and are booked to BU (AOS), thereby creating an interunit transaction between the Agency and BU

9. Overview continued
Agencies will have an AR Approver that approves the accounting entries.
No workflow setup for AR
Budget checking is no longer performed online by the user. The budget checking process will run nightly.
Procedures for Bank Adjustments, NSF Checks, Unidentified ACH/Wires, Correcting Approved Deposits, and Correcting Chartfields are in place
All accounting entries must be created and approved the same day of the ROC approval – Important!!!

10. Report of Collections Process
Receive payments
Cash, Checks, Wires, etc.
Endorse items
Required by the State
Fill out agency cash book
Cash book required by the State
Agency will be audited
TOS/AOS does not keep track of this for agency
For approval of your Agency’s cash book, please contact Mike Hoose, State Audit Supervisor, at
** Include check number or other payment ID, person sending money, what money was for
** Copies of the checks must be attached to the book
** Only actual collections of money – no Zero ROC, no adjustments (debits or credits)

11. Report of Collections Process continued
Create deposit in ENCOMPASS
Accounts Receivable > Payments > Online Payments > Regular Deposit
All payments automatically marked as Journal Directly
Required in order for journal entries to be created and sent to the General Ledger
Verify the Journal Directly box is checked for all payments
Change approval status from Open to Pending Approval and Save the page

12. Report of Collections Process continued
Print the ROC report (2 copies)
Accounts Receivable > Payments > Reports > ROC Report
Accounting information is not on the ROC report
Must be printed on white paper
Write phone number on ROC report below name
Signature is not required
Assemble the ROC Packet
2 copies of ROC report
2 calculator tapes (one for TOS and one for the bank)
Payments
Submit the ROC Packet to TOS by 3:00 PM daily
State law requires all funds to be deposited within 1 business day

13. Report of Collections Process continued
TOS approves or denies deposit
If approved, TOS stamps the top copy and initials the second copy. TOS keeps the stamped copy and gives the Agency the initialed copy. The Agency is required to keep a copy for its records.
If denied, Agency must correct the deposit, reprint the ROC reports, and re-submit the ROC packet to TOS.
Agency AR Entry User creates Direct Journal entries either before or after deposit is approved by TOS
74’ and ‘75’ are transfers in and out accounts and are only to be used by the Budget Agency
Any account that starts with an "E" are specifically for budgets, not ROCs – Do not use an account starts with “E”
All Federal Revenue must have the Activity code REVFEDL

14. Report of Collections Process continued
Online budget checking no longer required
Journal entries are no longer submitted to AOS for entry
Notify Agency AR Approver that entries are ready for review
Agency AR Approver approves Direct Journal entries
Accounts Receivable > Payments > Direct Journal Payments > Create Accounting Entries
Review the entries and verify the chartfield values are correct
Mark the Complete checkbox for each payment and save the page
Journals cannot be changed once they are approved
12. Journals are generated, budget checked, and posted to GL nightly

15. Demonstration
Are there any questions?
Demonstration
Exercises

16. Special Payment Scenarios
The following transactions are not traditional “deposits” but will be recorded using the ROC functionality.
Bank Adjustments – Debit
Bank Adjustments – Credit
Zero Dollar Deposit
Unidentified ACH or Wire Transfer
Non-Sufficient Funds (NSF)
Correction Deposit

17. Bank Adjustments – Debit
Occurs when Treasurer of State (TOS) receives a Bank Debit
TOS assigns an Adjustment Sequence Number to the Bank Debit
TOS sends the Bank Debit to the Agency
Agency enters the Bank Debit as a payment in a deposit
Debits may be combined with other payments or entered separately as its own deposit
When debits are combined with other payments, the deposit total cannot be 0.00 (ZERO)
Payment ID = Adjustment Sequence Number
Amount field - should have a negative number
Payment Method = Debit
Journal Directly Box = Checked
Agency prints ROC Report and submits to TOS for approval
TOS approves the deposit
Agency AR Entry User enters accounting entries
Books the amount as a debit to revenue – thus reducing revenue
Agency AR Approver approves the entries

18. Bank Adjustments – Credit
Occurs when Treasurer of State (TOS) receives a Bank Credit
TOS assigns an Adjustment Sequence Number to the Bank Credit
TOS sends the Bank Credit to the Agency
Agency enters the Bank Credit as a payment in a deposit
Credits may be combined with other payments or entered separately as its own deposit
Payment ID = Adjustment Sequence Number
Amount field - should have a positive number
Payment Method = Credit
Agency prints ROC Report and submits to TOS for approval
TOS approves the deposit
Agency AR Entry User enters accounting entries
Books the amount as a credit to revenue – thus increasing revenue
Agency AR Approver approves the entries

19. Zero Dollar Deposit
Enter a Zero Dollar Deposit for the purpose of correcting Accounting Entries. This replaces the Journal Voucher.
Agency enters a deposit for direct journal
Control Total Amount entered as 0.00 (Zero)
Count must be at least 2
Deposit Type = M
Payment ID = enter the original Deposit ID
Minimum of Two Payments must be entered
Payment 1 entered as a Negative amount
Payment 2 entered as a Positive amount
Payment Method = same as the original payment
Description = “To correct chartfields for deposit xxxxxxxx”
Agency prints ROC Report and submits to TOS for approval

20. Zero Dollar Deposit continued
TOS approves the deposit and enters a TOS Deposit ID of ZERO
Approval is required by TOS in order to push the deposit through the system so that accounting entries can be entered and approved by the Agency
TOS does NOT review or approve accounting entries
Agency AR Entry User enters accounting entries
Entries for the Negative Payment will take the activity out of the incorrect chartfield string
Entries for the Positive Payment will put the activity into the correct chartfield string
All correcting entries for AR must have the current BUDREF (put information to correction in Description field)
A payment may have multiple accounting entries
Accounting entries may be interunit or intraunit
Agency AR Approver approves the entries
NOTE: All ROC related accounting entries, including corrections, MUST be entered into the AR module.

21. Unidentified ACH / Wire Transfer
Occurs when TOS receives an Unidentified ACH or Wire Transfer
TOS will hold unidentified ACH or Wire Transfers for 30 days before entering a deposit for unclaimed funds
If the Agency claims the unidentified ACH or Wire within 30 days, the Agency will enter the deposit by following normal ROC procedures
TOS enters a direct journal deposit for BU 00048
TOS prints ROC Report and approves the deposit
TOS enters and approves the direct journal accounting entries
Debit to Cash account
Credit to Unclaimed Funds account for BU 00048

22. Unidentified ACH / Wire Transfer continued
How does an Agency claim the funds after the 30 day holding period?
Agency contacts TOS
Agency enters a Zero Dollar Deposit
Payment 1 entered as a Negative amount – To take the funds out of BU unclaimed funds
Payment 2 entered as a Positive amount – To put the funds into Agency’s revenue account
Agency prints ROC report and submits to TOS for approval
TOS approves the deposit and enters a TOS Deposit ID of ZERO
Agency AR Entry User enters accounting entries
Entries for Payment 1 will take the activity out of BU Unclaimed Funds
Entries for Payment 2 will put the activity into the Agency’s revenue account
Agency AR Approver approves the entries

23. Non-Sufficient Funds (NSF)
Occurs when Treasurer (TOS) receives NSF check
TOS enters the NSF as a direct journal payment in a deposit under the Agency BU
TOS prints ROC Report and approves the deposit
TOS enters and approves the direct journal accounting entries
Debit to Returned Check expense account for Agency BU
Credit to Cash account
TOS notifies the Agency of their returned checks

24. Non-Sufficient Funds (NSF) continued
Agency receives a new payment
Agency may or may not know the new payment is a replacement for an NSF
Agency enters a new payment in a deposit according to normal ROC procedures
Enter new payment using the correct payment method (i.e. Cash, Check, etc.)
When entering the accounting entries, record the new payment to the appropriate revenue account
If a new payment is identified later as a replacement for an NSF, then a Zero Dollar Deposit can be entered to clear out the Returned Check expense account
Negative payment entered as a Debit to Revenue
Positive payment entered as a Credit to Returned Check expense account

25. Correction Deposit
Occurs when TOS discovers error on an ROC that was approved in ENCOMPASS but was not yet entered into the TOS legacy system.
TOS enters the Correction as a separate direct journal deposit under the Agency BU
TOS prints ROC Report
TOS approves the deposit and notifies Agency of deposit ID
Agency AR Entry User enters accounting entries
Books to the original revenue – thus reducing or increasing the total revenue
Agency AR Approver approves the entries

26. Demonstration
Are there any questions?
Demonstration
Exercises

27. Review Deposit Accounting
Navigation: Accounts Receivable > Payments > Direct Journal Payments > Review Deposit Accounting
The Review Deposit Accounting page displays all of the accounting entries for a direct journal deposit including the system-generated Cash Control entries.
Upon TOS approval of a deposit, an entry is made behind the scenes to debit Cash and credit Cash Control. This entry ensures that approved deposits are accounted for in the GL at the end of the day.
The Cash Control entries will be reversed once the Agency enters and approves their direct journal accounting entries and the Cash Control Reversal process is completed.
The Cash Control Reversal process is run nightly by GMIS.

28. Import Payment Deposits
Navigation: Accounts Receivable > Payments > Direct Journal Payments > Import Payment Deposits
Payment information can be uploaded from a data file if it is in the correct format.
The data file can be uploaded from a file on the server or as an attachment. For the server option to work, you must have access to the directory.
Balanced entries can be created for any deposit. However, if a row in the data file contains an invalid or missing chartfield, balanced entries will not be created.
Only non-AOS deposits can be marked as Complete. AOS deposits must first be approved by TOS. Then, the AR Agency Approver must mark each payment Complete individually.

29. Queries & Reports
SOIAR001 – Pending Deposits (also available as a pagelet option – snapshot of query on your Home page)
SOIAR101 – Direct Journal Deposits not journalized to GL
SOIAR111 – Deposits in the AR module entered for the previous month after the last day of that month
Payments Detail Report – An overview of your deposits
Navigation: Accounts Receivable > Payments > Reports > Payment Detail
Review Payments – An overview of your payments
Navigation: Accounts Receivable > Payments > Review Payments > By Bank Account or By Unit or All Deposits etc.,

30. Review of ROC Process Receive payments Endorse items
Fill out agency cash book
Create deposit in ENCOMPASS
Change approval status to Pending Approval
Print ROC Report
Submit ROC Report to TOS for Approval
TOS approves deposit
Agency AR Entry User enters direct journal entries
Notify Agency AR Approver
Agency AR Approver approves direct journal entries
Journals are generated nightly

31. Evaluation Time Gowri Kulanthaivel (GMIS) gkulanthaivel@iot.in.gov
Course evaluation
- We use these evaluations to adjust the class, if necessary
Gowri Kulanthaivel (GMIS)
Thank you for taking time to learn the ROC Procedure! 31