AR351: Creating and Maintaining Receivables Welcome to AR351: Creating and Maintaining Receivables.

AR351: Creating and Maintaining Receivables Welcome to AR351: Creating and Maintaining Receivables

AR351: Creating and Maintaining Receivables Please set cell phones and pagers to silent Refrain from side discussions. We all want to hear what you have to say! Feel free to ask questions. If your question is off-topic or will be discussed later in the training course, we will write it on a flip chart (parking lot) to be sure we cover it later Two breaks and a one hour lunch are planned Bathrooms / Snacks  First Things First

AR351: Creating and Maintaining Receivables Name, Agency Name What kinds of customers do you have at your agency? What would you like to get from today’s session? Hello

AR351: Creating and Maintaining Receivables Training Materials Overview

AR351: Creating and Maintaining Receivables Produced in Microsoft Word Contains key concepts, processes, and task information required to complete a user’s role in SMART Process flows and screenshots of the SMART system are included This is a great reference to use after training!  Participant Guide

AR351: Creating and Maintaining Receivables Used to help the Trainer facilitate the course materials Produced in Microsoft PowerPoint Contains key content and graphics Generally used at the beginning or end of each Lesson  Concept Slides

AR351: Creating and Maintaining Receivables Used to present the flow of either business processes or information within SMART  Business Process Flows

AR351: Creating and Maintaining Receivables Produced in Microsoft Word Contains a scenario for each activity completed in the training database Provides data that you must enter for the exercise Organized by classrooms and users Take note of the user ID assigned to you  Activity Guide

AR351: Creating and Maintaining Receivables Demonstration – instructor only (hands off) Walkthrough – instructor leads and participants complete exercise with instructor (hands on) Exercise – Participants complete on their own Challenge – Participants complete on their own  Activity Types

AR351: Creating and Maintaining Receivables An online help tool that contains user procedures for completing tasks in SMART Used in training to perform a simulation of a SMART task or to be used during an activity as a help guide UPKs are also available after training on the SMART Training website UPKs are simulated to have the look and feel of SMART, but do not impact the production environment. It is a safe way to practice tasks that you perform in SMART.  User Productivity Kits (UPKs)

AR351: Creating and Maintaining Receivables A short document that contains key concepts or steps involved in a course  Can be content or system related Available for all participants to use during training Used after training for quick reference from the Training Portion of the SMART website Referenced as often as possible during training to indicate the “handiness” of the material  Job Aids

AR351: Creating and Maintaining Receivables Are conducted using the SurveyMonkey tool Please complete a course evaluations for each new course that you attend Trainers also complete a course evaluation at the end of each class  Course Evaluations

AR351: Creating and Maintaining Receivables  Questions

AR351: Creating and Maintaining Receivables  Course Objectives After completing this course, you will be able to: Understand specific receivables terms Understand the end-to-end process for receivables in the Accounts Receivables and Billing modules List and describe the roles involved in creating and maintaining receivables Enter and review receivables with specific information Maintain and update receivables with specific information Understand transfer receivables Understand account aging and communication Understand collections and exceptions management

AR351: Creating and Maintaining Receivables Lesson 1

AR351: Creating and Maintaining Receivables  Lesson Objectives After completing this lesson, you will be able to: Define key terms, including receivables, item entry, customers, aging, batch processing, posting, and Receivable Update Describe how receivables fits into the end to end process of Accounts Receivable and Billing List and describe the roles involved in creating and maintaining receivables

AR351: Creating and Maintaining Receivables  Defining Key Terms for Receivables Receivable – An expectation to receive payment for goods or services sold Item Entry – Entering invoices, debit memos, and credit memos Customers – Entity that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers Aging – This process of allowing a user to view the time that has passed since customers were billed or a pending item was established Batch Processing – The process of running a series of programs or “jobs” in the system without the need for user action

AR351: Creating and Maintaining Receivables  Defining Key Terms for Receivables Posting – An automated process of creating and recording accounting entries in SMART Posting Statuses – Not Posted, Errors, Complete Receivable Update (AR Update) – The posting process in SMART Receivables is known as AR Update. The AR Update process occurs throughout the system as you post pending items. These pending items can be entered online, created by your billing interface, created during payment processing, or during item maintenance activities. AR Update runs hourly.

AR351: Creating and Maintaining Receivables  What Does Receivables Do? Designed to support multiple item and payment processing functions Reduces the need to store extra data and thereby associated maintenance, reconsolidation, and accurate data integrity Stores large quantities of information and supports many functions, you can control the amount of data that you work with by selecting only the information that you need

AR351: Creating and Maintaining Receivables  End-to-End Accounts Receivable and Billing Process

AR351: Creating and Maintaining Receivables  Receivables Lifecycle Process

AR351: Creating and Maintaining Receivables  Accounts Receivable Roles AR Agency Administrator – This role is responsible for approving agency deposits in addition to creating and updating customers and customer information. AR Configurator – This role is responsible for setting up and maintaining values that are used for some AR fields, such as payment terms an aging categories. They also have the ability to correct history for effective dated rows. AR Maintainer – This role is responsible for reviewing and maintaining Accounts Receivable information, including customer, contact, deposit, item, and payment information. Pending Item Processor – This role is responsible for creating pending items, credit, and debit memos. This role also views customer, payment, and deposit information.

AR351: Creating and Maintaining Receivables  Lesson Summary In this lesson, you learned: How to define key terms for receivables processing How to describe how Receivables fits into the end-to-end process of Accounts Receivable and Billing module How to describe the roles involved in creating and maintaining receivables QUESTIONS?

AR351: Creating and Maintaining Receivables  Lesson Objectives After completing this lesson, you will be able to: Enter data for pending items, including online items (group) and external item (group) Create accounting entries and set them to post Enter entry type Enter reason code Locate and view all items with detail Locate and utilize the Review Items page Update pending items

AR351: Creating and Maintaining Receivables  Working with Pending Items Pending Items – Amounts that are billed to a customer but not paid. These are any receivable item that has not yet been posted to an account in SMART. Pending items can be entered in two ways, manually as online items or received as external items from a billing program, such as SMART Billing. o Online Pending Items – Pending items that are entered manually. When you enter pending items, you enter control information for the group and detailed information about each item. o External Items – Pending items from a billing program, such as SMART Billing. External items are edited by SMART so that errors are discovered during posting instead of during pending item activity

AR351: Creating and Maintaining Receivables  Working with Pending Items Create Accounting Entries and Setting Them to Post – The posting process in SMART Receivables is known as AR Update. The AR Update process occurs in SMART as you post pending items. These pending items can be online, external, created during payment processing, or during item maintenance activities. When you post items in SMART Receivables, SMART processes groups of pending items to update a customer’s balance and creates balanced, valid accounting entries. These accounting entries are then passed to the General Ledger by a process called the Journal Generator.

AR351: Creating and Maintaining Receivables We will now complete a UPK Simulation: Viewing all Items With Detail

AR351: Creating and Maintaining Receivables  Working with Pending Items – Entry Type Every receivable transaction in SMART must have a valid Entry Type associated Entry Types categorize pending items that create or update posted items in SMART Examples: Invoices, payments, debit memos, credit memos, overdue charges, and write-offs Entry Types in combination with Entry Reason Codes provide the line of distribution for each pending item that is entered in SMART

AR351: Creating and Maintaining Receivables  Working with Pending Items – Entry Type (cont’d) Automatic Entry Type – Defines how SMART assigns Entry Types (write-offs, payment on account) and Entry Reasons to pending items that are being paid or maintained. Automatic Entry Types are used on worksheets (payment, maintenance, and transfer). Examples of Automatic Entry Types: write-offs, payment on account Item Entry Type – Categorize pending items that create or update posted items within the system Examples of Entry Types: payments, debit memos, credit memos, and write-offs

AR351: Creating and Maintaining Receivables  Working with Pending Items Every receivable transaction in SMART must have a valid Entry Reason Codes associated Entry Reason Codes categorize different uses for a single Entry Type Entry Reason Codes in combination with Entry Types provide the line of distribution for each pending item that is entered in SMART Multiple entry reasons can be assigned to a single entry type Entry reason codes can be used for: Invoice or debit memos, credit memos, pre-payments, on-account payments, deductions, write-offs (debits and credits, remaining debit and credits, underpayments and overpayments), adjustments for underpayments and overpayments, credit refunds, creating new debits and credits, and offsetting items

AR351: Creating and Maintaining Receivables We will now complete Activity 1 in your Activity Guide

AR351: Creating and Maintaining Receivables  Updating Pending Items You have the ability to update pending items before it is picked up in AR Update. Find an existing value This will only pull up items that have not yet been posted You MUST set your posting status to Do Not Post before you can update data Update your item(s) Create accounting entries Set the pending item(s) to post

AR351: Creating and Maintaining Receivables  Lesson Summary In this lesson, you have learned to: How to create accounting entries and set them to post How to enter data for pending items including, entry type and reason code How to locate and view group status, all items with detail, groups not set to post, and any item group How to utilize the Review Items page How to update pending items QUESTIONS?

AR351: Creating and Maintaining Receivables  Lesson Objectives After completing this lesson, you will be able to: Change a payment term Apply debit and credit memos to each other Understand what processes are utilized within worksheets and how worksheets are used Clean up accounts with a maintenance worksheet and review maintenance worksheet item account entries using debit/credit memos and write-offs Enter a multi-item update Unpost an item group Unpost a maintenance group

AR351: Creating and Maintaining Receivables  Key Terms Payment Terms – are used to calculate net due dates Maintenance Worksheets – A maintenance worksheet is a workspace for offsetting, writing-off, or adjusting posted items. You can also use maintenance worksheets to refund an item with a credit balance or to create a new refund item for a credit remaining from maintenance tasks.

AR351: Creating and Maintaining Receivables  Change Item Pay Terms Item Due Date – Modifying the payment terms of an item requires changing the due date of the item by updating single item information This process can only be done on one customer at a time By changing the payment terms, SMART updates the Item Due Date based upon the selected term change

AR351: Creating and Maintaining Receivables  Cleaning Up Accounts Using Maintenance Worksheets A maintenance worksheet is a workspace for offsetting items, write-offs, or adjustments for cleaning up posted items Maintenance worksheets are used to refund an item with a credit balance or to create a new refund item for a credit remaining from maintenance tasks

AR351: Creating and Maintaining Receivables  Maintenance Worksheets using Debit and Credit Memos Maintenance items can be: Credit memos, debit memos, invoices, adjustments, on-account payments, or payments Maintenance worksheets in SMART allow you to offset debit and credit memos Credit and Debit Memos must be created as new pending items The new memos are not available on a maintenance worksheet until AR Update has run When entering pending item memos, utilize the following Item ID’s Credit Item ID: XXX-CR Debit Item ID: XXX-DR

AR351: Creating and Maintaining Receivables  Maintenance Worksheets and Item Account Entries You can create online accounting entries on maintenance worksheets transactions, and can review these entries on the Accounting Entries page before they are processed The only Accounting Entries you can edit online for items on a worksheet are user-defined for write-offs Accounting entries for matched items are system-defined and cannot be edited online

AR351: Creating and Maintaining Receivables  Multi-Item Update SMART Receivables provides two methods for simultaneously changing field values of multiple items – automatically using the Mass Change Application Engine process or manually. To update manually, change the field values for selected items on the Item List page. Note: The SOK uses Muliti-Item Update to change payment terms only. Multi-Item Update cannot be used for more than one customer at a time.

AR351: Creating and Maintaining Receivables We will now complete a UPK Simulation: Entering Multi-Item Updates

AR351: Creating and Maintaining Receivables  Unposting Item and Maintenance Groups Unposting items can only be done after AR Update has processed the item(s) Unposting creates a group of items that is the exact opposite of the original item, which includes new item activities and accounting entries Unposting Reasons are NSF (Non-Sufficient Funds), Wrong Cust (Wrong Customer), Wrong Inv (Wrong Invoice), and Retrnd Chk (Returned Check). After the group has been successfully posted by AR Update, the item(s) are unavailable for editing. They can only be “viewed”. If you encounter an error in your group(s), and you wish to unpost, if AR Update has not yet run, simply set the posting status of the group to “Do Not Post”. At this time you can return to your original item(s) and create the necessary updates

AR351: Creating and Maintaining Receivables  Lesson Summary How to change a payment term How to apply debit and credit memos to each other How to maintain and review worksheets using debit/credit memos and write-offs How to do a multi-item update How to unpost an item group How to unpost maintenance groups How to view Item Audit History In this lesson, you learned: QUESTIONS?

AR351: Creating and Maintaining Receivables  Lesson Objectives After completing this lesson, you will be able to: Build a transfer worksheet Update a transfer worksheet by creating and posting data Use transfer worksheet actions

AR351: Creating and Maintaining Receivables  Using Worksheet Actions Building a Transfer Worksheet A transfer worksheet is a workspace for transferring an expected bad debt or an open item from one customer to another. You can access only those open items that have been posted. Customers must be in the same business unit for transferring receivables Updating Data on a Transfer Worksheet You can add or change items on a transfer worksheet. In addition, you can enter general or specific customer and item criteria depending on the scope of information you want on the worksheet. Using Transfer Worksheet Actions You can select a posting option for the transfer worksheet depending on your requirements Note: If this process is done correctly, the FROM customer will not have the item in their customer items anymore, and it will be transferred to the new TO customer.

AR351: Creating and Maintaining Receivables  Lesson Summary In this lesson you learned: How to work with transfer worksheets How to use transfer worksheet actions QUESTIONS?

AR351: Creating and Maintaining Receivables We will now complete Activity 6 and Activity 7 in your Activity Guide

AR351: Creating and Maintaining Receivables  Lesson Objectives After completing this lesson, you will be able to: Define Aging and Dunning Run the Aging Summary by Unit Report Run the end-to-end process for customer statements Run the end-to-end process of Dunning letters including processing and printing

AR351: Creating and Maintaining Receivables  Aging and Dunning Defined Aging – The process of allowing a user to view the time that has passed since customers were billed or a pending item was established Dunning – The process of methodically communicating with customers to ensure the collection of accounts receivable

AR351: Creating and Maintaining Receivables  Aging and Dunning Processes The following flow chart is an overview of processes involved in Aging and Dunning. Process and Print functions are optional, but the AR Update and Aging Batch Processes must be finalized before moving forward

AR351: Creating and Maintaining Receivables  Aging Summary Reports The Aging process updates summary aging information that appears on various inquiry pages The Aging process automatically processes all customers in a business unit Aging helps to identify delinquent accounts and to assess possible cash flow issues The Aging process automatically processes all customers in a business unit specified on the aging request. Use the Aging Summary By Unit Report to see aged open balances for every customer in a business unit High Due history ID – is the highest amount the customer has ever owed the agency. This allows agencies to determine the risk level of customer. Due – is the current amount past due

AR351: Creating and Maintaining Receivables We will now complete a UPK Simulation: Running the Aging Summary by Unit Report

AR351: Creating and Maintaining Receivables  Processing and Printing Customer Statements SMART enables you to generate customer statements on a regular schedule for many customers or a single statement for only one customer Customer statements are based on current customer balances and open item information, which are updated by the AR Update process Printing customer statements is an optional process, and should be based on agency specific scenarios

AR351: Creating and Maintaining Receivables We will now complete a UPK Simulation: Processing and Printing Customer Statements

AR351: Creating and Maintaining Receivables  Processing and Printing Dunning Letters SMART Receivables uses Dunning letters to communicate to customers their account receivable balance, items that make up their balance, and the age of the items in their account Dunning letters are created to alert customers of overdue items and expedite the collection of outstanding accounts receivable Expediting the collection of outstanding accounts receivable enhances the cash flow of agencies To generate Dunning letters for specific customers, you need to run a single, two-step process Note: Dunning Letters can also be run based on Dunning Group ID, and Printing Dunning letters is optional, and should be based on agency specific scenarios

AR351: Creating and Maintaining Receivables We will now complete a UPK Simulation: Processing and Printing Dunning Letters

AR351: Creating and Maintaining Receivables  Lesson Summary In this lesson you learned: How to key terms including Aging and Dunning How to run the Aging Summary by Unit Report How to run the end-to-end process for customer statements How to run the end-to-end process of Dunning Letters including processing and printing QUESTIONS?

AR351: Creating and Maintaining Receivables  Lesson Objectives After completing this lesson, you will be able to: View customer history View customer account information including activity summary, item statuses, accounting entries, single item entries, item payments, and outstanding item payments View item groups Dispute an item and add a conversation

AR351: Creating and Maintaining Receivables  Analyzing Customer Accounts Analyzing individual customer accounts is the process of determining how well customers maintain their accounts Use customer analysis to make decisions about an agency’s accounts receivable and collection policies and facilitate planning and budgeting You can also use customer analysis to help minimize the agency’s exposure to bad debt When analyzing customer accounts, you can view items in groups or individually (single) Examples of information available in SMART are: Accounting Entries Disputes Collections Payment History Due Dates

AR351: Creating and Maintaining Receivables  Customer Account Overview Use the Account Overview component to: View various customer balances View the most recent item View payment activity View accounting entries View summarized aging information

AR351: Creating and Maintaining Receivables  Viewing Item Groups Group – During customer analysis, questionable accounts and/or items may be found. In order to resolve these questions, you must research detailed information. There are single documents that can have multiple items attached to them. For example, one check can pay many invoices, one purchase order can be attached to several bills of lading and invoices, or one sales order can have multiple shipments and invoices. You may need to research groups of items that relate to one another.

AR351: Creating and Maintaining Receivables  Disputing Items and Adding a Conversation SMART Receivables enables you to put items in dispute based on internal agency notification or customer notification.

AR351: Creating and Maintaining Receivables We will now complete Activity 10 and Activity 11 in your Activity Guide

AR351: Creating and Maintaining Receivables  Lesson Summary In this lesson, you learned: How to view customer history How to view customer account information including activity summary, item statuses, accounting entries, single item entries, item payments, and outstanding item payments How to view item groups How to dispute an item and add a conversation QUESTIONS?

AR351: Creating and Maintaining Receivables Closing the Day

AR351: Creating and Maintaining Receivables  Use the following resources SMART Training Website  http://da.ks.gov/smart/training.html http://da.ks.gov/smart/training.html SMART Training Team  Contact us at smarttraining@da.ks.govsmarttraining@da.ks.gov SMART materials  Review, Review, Review your SMART materials after training!!

AR351: Creating and Maintaining Receivables  Questions

AR351: Creating and Maintaining Receivables  Evaluation Please fill out the evaluation for today’s instructor led training session! http://www.surveymonkey.com/s/SMARTtrainingAR351

AR351: Creating and Maintaining Receivables Thanks for coming and participating today!

AR351: Creating and Maintaining Receivables Welcome to AR351: Creating and Maintaining Receivables.

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AR351: Creating and Maintaining Receivables Welcome to AR351: Creating and Maintaining Receivables.

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