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

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

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.

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). 

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

GMIS Support “Report an Issue” link on the Sign In page “Report an Issue” link under the ENCOMPASS menu Call 317-234-HELP and a ticket will be created for you 6

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

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 00050 (AOS), thereby creating an interunit transaction between the Agency and BU 00050.

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!!!

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 mhoose@sboa.in.gov ** 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)

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

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

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

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

Demonstration Are there any questions? Demonstration Exercises

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

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

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

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

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.

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

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 00048 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 00048 Unclaimed Funds Entries for Payment 2 will put the activity into the Agency’s revenue account Agency AR Approver approves the entries

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

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

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

Demonstration Are there any questions? Demonstration Exercises

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.

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.

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.,

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

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