accounts receivables accruals fy19 account amounts will be reset to 0.00, and the fy18 account...

Accounts Receivables

Accruals

For FY18

June 20, 2018

Information Technology

AR Setup FY18 6/20/18 Workshop

Understanding the Accrual Process

The goal of year-end accrual process is to recognize revenues and expenses in the period in

which it was incurred, regardless of when payment is received or paid, to ensure accurate

presentation of revenues and expenses. Accrual basis accounting records revenues at the time

when services or sales are made rather than when cash is actually paid or received.

Escape Year End Process Overview

What you should be working on Now:

● Clear All Prior Year Receivables

● Run Receivables Activity Report (Ledger 02)

What you should be working on in July:

● Resolve Any Outstanding Items on the Year End Closing List (Fiscal 15)

● Resolve Unposted JE’s

Accrual Processing ● You must process/clear all outstanding receipts prior to processing any AR accruals

o Accrual balances are based on the last known amount remaining on the invoice o Invoice amounts will default as accrual dollar amounts for Year End Processing

o Should prevent potential data entry errors

● If a receipt has not been posted in FY18, a necessary receivable may not be accrued

o The posting from the Year-End Closing will show an error

● Documents with errors will not post

o Errors must be resolved first in Finance-AR-Invoices

● The accrual and carryover columns on the year-end list are editable, but may not be set

to a negative value

o You must clear all negative amounts. Including individual line items within an invoice that has a total positive amount. Finance-AR-Invoices

● The entire outstanding amount will be set to the accrual column because Escape Online

assumes the invoice is to be accrued

o You may carryover invoices

▪ You must manually change the accrual amount

o Watch for negative release amounts (red) when you manually change field amounts

● The accrual process will result in FY18 journal entries which establish AR’s (debits object

9229) and records revenue (credits objects 8xxx) in 2017-18.

Deadline for Cash Deposit is 6/25/18 DO NOT Enter Receipts for 2017-18 between 6/26/18 – 7/1/18.


Reminder:

o The Asset/Liability roll, which takes place after 2017-18 is closed, will move the General Ledger amounts from object 9229 in FY18 to General Ledger object

9210 in FY19

▪ The Asset/Liability roll does not roll the specific AR’s to the next fiscal

year

o Until the Asset/Liability roll is performed, there will be no balance in the FY19

general ledger object 9210 to offset the payments being made to the FY18

(accrued) receivables

NOTE: An invoice must be created first in order to process through Year-End

-OR-

a manual journal entry can be created to book receivable

****Manual Accruals of Due To/From Government Entities****

Must use 9290/9590 objects for any accruals associated with state or federal programs

(Example: Cafeteria)

Manual Journal Entries will need to be done, as the Year End Processing activity does not allow the use of objects other than 9210/9510.

Manual Journal Entries created with 9290/9590, balances will remain in these object codes during the Asset/Liability roll and will need to be manually reversed in the new fiscal year


1. Review Potential AR’s Go to Finance - Reports - Fiscal - Fiscal15

○ Run the Fiscal Year End Checklist (Fiscal15)

This provides a list of all items needing to be addressed prior to close

● Section 2 – User Options

○ Fiscal Year: 2018 {2017/2018} (System will default to 2019 after July 1)

○ Click Go

● Scroll down the Report to see outstanding AR invoices after the Requisition detail

● You cannot process invoices that have pending Receipts batches

● If Invoice is in Receipts Status, review to see if it needs to be manually

complete, or left to process through Year End Processing


● After the last cash deposit date

o You will need to cancel those receipts if unable to make deadline

o Any remaining items on the Year End Closing AR list must be accrued using the Year

End Closing Process

▪ All invoices in Printed status will accrue

o Enter your FY18 receipts in FY19 against the new accrued AR’s

The Fiscal15 Report MUST be totally clear before you can close the year

● After you work the list rerun the report to verify that there are no remaining entries

after you have processed all Printed status invoices through Year End Processing

● The report will show all types of entries

o Remember to clear every type of entry

FISCAL15 Report

MUST be clear prior to Closing FY18


2. Process Year End Closing for AR Invoices ● Provides a list specific to ARs

● Provides the screens to set up AR accruals

Go to Finance - Processes - Year End Closing

● Enter search criteria:

○ Fiscal Year: 2018 {2017/2018} (System defaults to 2019, after July 1)

○ Document Type: AR Invoice

○ Process Default = No

o NO allows you to select which invoice will move forward

o YES will automatically change ALL to process without reviewing

● Click Go to create list

Determine if Outstanding amount is Accrual, Carryover or Release

Use the quick link next to Ref # to review invoice

OR highlight invoice and click on the Preview Button


Accrual Invoice to Next Year FY19–

● Enter the amount in the Accrual field (Defaults entire amount)

● If accrual is correct as is, then change the Process field to Yes

● Prior Year Receivables can be accrued

● If accrual amount is less than invoice, the difference will be released

● Automatically sets the Process field to Yes

Invoice ACCRUAL Process

Changes the invoice fiscal year FY18, to the next fiscal year FY19

Creates Journal Entry Record to the appropriate accounts with a transaction date 6/30/18

Creates a History Record

Carryover Invoice to Next Year FY19–

● Enter zero in Accrual field

● Enter the amount in the Carryover field

● Automatically calculates the Release amount and sets the Process field to Yes

Invoice CARRYOVER Process

Does NOT create any Journal Entry Records

Adds the Next Year’s FY19 Accounts



Release the Receivable of the Invoice (Close Out) –

Sometimes it is better to just close out the invoice.

● Enter 0.00 in Accrual and Carryover fields

● Remaining balances will be released

● Automatically sets the Process field to Yes

Post Changes from the Task menu

● Go to Task Menu to select Post to process all Account Receivables flagged Yes in

Process column

● Verify that you want to process these invoices

● Be sure you agree with the posting count before clicking Yes

Invoice will be Completed

Receivable will be reversed (It will NOT reverse any

payments)


Invoice RELEASE Process


● Review the Message Column for “Post failed error”. If you hover over the error or

enlarge the column, you can see the posted failed message.

Example: Post failed, error = Amounts cannot be negative

Example: Post failed, error = Expired Accounts

● Use the quick link next to the AR # to review the AR Invoice detail

● Go to the Receipts Tab

● If Status is submitted, then the AR Receipt is still in process

● If this is after the 6/25/18 Cash Deadline, then you will need to delete the AR Receipts

● Review the Year End Closing list again to verify that these items have cleared

If you want to continue to work the Year End Closing list, be sure to go back to Search Criteria, Click Go to refresh the list.


3. Rollback Year End Processing Task

Make Changes or Update FY18 Accounts on an Invoice that has already been processed on the Year End list.

● Can be used on invoices in any status, except Canceled or Complete Status

● The FY19 account amounts will be reset to 0.00, and the FY18 account amounts will

be increased according to the amounts in the journal entries

● Receivables that were set up for FY19 will be reversed

● FY18 receivable will be re-established

● If an amount was released for FY18 prior to year-end with a carryover amount, it will

redistribute evenly to the non-receivable accounts

Go to Finance – AR - Invoices

Search Criteria:

● Enter the invoice you need to review

● Invoice Number: AR18-XXXXX

● Fiscal Year 2019

● Click Go

● Open the Invoice

● Go to Tasks

● Select Roll Back Year End Processing

● Creates a History Record of the Rollback Year End Process

● Returns the Amounts and Accounts back to original setup.

● Make the appropriate changes

● Invoice MUST be processed again on the Year End Closing list.


4. Review and Clear Journal Entries

Go to Finance – Fiscal – Journal Entries

● Post or delete all journal entries that have not been posted or cancelled

Search for JEs in the Open, Submitted or Audit status

■ The order is important as you complete or address an open status item it

could then move to the Submitted or Audit status and be missed during other

status searches

● Determine if Journal Entry should be posted or deleted

● Re-run the journal search to verify there are no outstanding journal entries


5. Review and Clear Budget Transfers

Go to Finance – Fiscal – Budget Transfers

● Post or delete all budget transfers that have not been posted or cancelled

Search for Budget Transfers in the Open, Submitted or Audit status

■ The order is important as you complete or address an open status item it

could then move to the Submitted or Audit status and be missed during other

status searches

● Determine if Journal Entry should be posted or deleted

● Re-run the journal search to verify there are no outstanding budget Transfers


6. Review AR Invoices Go to Finance – AR – Invoice

Search Criteria:

● Enter the invoice you need to review

● Invoice Number: IN18-XXXXX or AR18-XXXXX

● Blank out the Fiscal Year field to make sure you see all invoice history

● Click Go

● Open invoice

● Select the Accounts Tab from the invoice

● All activity will display in order of entry

Remember that until the Asset/Liability Roll is done for your district later in August, you will

be viewing 9229 in FY18 and 9210 in FY19 for all AR’s in the G/L for balancing. In the AR

Account Tab you will see the original FY18 Receivable, and the FY19 9210 GL Account

listed.

o Note the invoice is in FY19

o Any changes to the invoice must now be done in FY19


7. Review the Ledger02 Report

Go to Finance – Reports – Ledger – Ledger02

Run the Ledger 02- Receivables/Liabilities Activity

Search Criteria:

● Closing Year: 2018 {2017/2018}

● A/R or AP?: A/R

● Specify Invoice # to see only transactions for that invoice or leave blank to see all

(Blank is the best setting for first review)

● Cleared Items: NO – Do NOT Show Cleared Items

● JE Source?: Yes - Include all JE Source

● Unposted JE?: Yes – select unposted Journal Entries

● Can select specific account components to narrow search

● Click Go

● This report shows journal entry activity by:

o Account receivable invoice number

o Journal entry number as it relates to account receivable and/or liability setup

and clearing


o The offset objects the report uses are defined in the Ledger tab of the

Organization record

▪ The current year is set to 9229 and the prior year is set to 9210

o Journal entries that do not reference a requisition or invoice and only have an

offset account and a cash account will be excluded from the report

o The journal entries made to 9290/9590 will not be present on the report

o The description comes from the AR Invoice comment

▪ If the comment is blank, the report will use the comment from the latest

JE that is found for this reference number

o If the offset account is expired, an asterisk will show next to the amount


SETTING UP a Year End receivable WITHOUT an FY18 Invoice

Based on District practices and procedures, you can create an invoice to process through year

end –OR- go straight to receipts to deposit after 7/1/18, being careful to select the correct

year.

Create an Invoice Make sure customer exists before starting the process

Go to Finance – AR – Customer to search

Go to Finance – AR – Invoice

● Select New

● Select on 2017-18 to create in the correct fiscal year

● Fill in all the criteria required for the Invoice, Items and Accounts tabs

● Select Save/Close

● Need to Print Invoice

Print an Invoice

Go to Finance – AR – Print Invoice

● Enter your Department from the drop down menu

● Status option: Open

● Click Go (Note the list will provide you with an AR18-xxxxx invoice)

● From the List screen select the Tasks menu

● Select Print Invoices

● You do not have to actually print the invoices but you will need to select the

printer icon so the system thinks you have

● The Print Invoice Step is what moves the invoice to a status Printed and the

entry to show on the AR Year End Closing screen

Go to Finance – Processes – Year End Closing to process new invoice

***You MUST return to the Year End Processing screen and move the new invoice to FY19 to establish an AR***


Entering AR Receipts (Invoices that have been processed through Year End Closing or if no invoice created in Prior Year)

Go to Finance – AR – Enter AR Receipts

NOTE: Be careful to select the correct fiscal year; DO NOT Combine deposits for FY18 and FY19

● Enter the current date

● Bank Account: COUNTY {County}

● Enter the invoice number for Receipt #1 (IN18-XXXXX)

● Enter the Amount Received

● Receipt Type: C{Check} is default or use drop down to select

● Enter a Comment

● Continue entering AR

Receipts

● Click Go to create

batch

● From List go to Tasks to

select Submit for

Deposit

● Verify number of

receipts before

selecting Yes

****You cannot deposit money for FY18 in FY18 after 06/25/18***


***Pre-Close*** This is before 2018 Year End Close

Example #1: ALTER a receivable already processed through the ‘Year End Closing’ screen

FY18 has not been closed a data entry mistake in a year end receivable was set up. It is

recommended to use the receivable field in the Invoice Record.

● Go to Finance-AR-Invoices ○ Enter the Invoice number IN18-XXXXX ○ Clear Fiscal Year field

○ Open the Invoice

○ Go to the Accounts Tab and adjust the line item amounts, as necessary

○ Go to the Accounts Tab and Enter or Adjust the Receivable amount in the

Receivable Field of the FY18 Revenue Account

■ If the Revenue Account field is Locked the FY18 is Closed

■ Adjusting the FY18 receivable amount will automatically adjust the Revenue

Amount for FY19

○ Save/Close the Invoice

● Escape will make the appropriate changes to the revenue account and linked account that were set up for FY19

● Increasing this value will cause the revenue account amount to be decreased by the

same amount and the linked account to be increased

● When you save the invoice, Escape will create a journal entry that adjusts the revenue

for the prior fiscal year


Example #2: AR was set up and should not have been

Go Finance – AR - Invoices Search Criteria:

● Enter the invoice number you wish to edit

● Clear Fiscal Year field

● Click Go

***DO NOT USE TASKS TO RETURN TO OPEN***

● Go to the Accounts Tab enter zero as the receivable amount in FY18

Receivable fields

● If the FY19 revenue amount line shows dollars be sure to also zero out each line

● This will automatically adjusts the 9210 receivable on the screen

● Go to the Invoice Tab and enter an Adjustment Amount to clear the Undistributed

Amount and Amount Outstanding

● Both the Amt Outstanding and the Undistributed Amount fields must be zero

● Go to Tasks Menu to select “Manually Complete”

● Save/Close and a FY18 journal will be created that will alter the FY19 setup to zero


Example #3: AR was set up with the incorrect Account code - The account codes on a FY18 AR line cannot be altered

- The AR must be manually completed

Go to Finance – AR - Invoices ● Enter the invoice number you wish to edit


● Click Go

● ***DO NOT USE TASKS TO RETURN TO OPEN***

● Go to the Accounts Tab adjust the receivable amount in the Receivable (2018) field

of the prior year revenue account to zero

● Adjust the 2018 revenue account to zero

● The 9210 receivable will automatically zero out on the screen when the first two

lines are changed to zero

● Return to the Invoice Tab and enter an Adjustment Amount to clear the

Undistributed Amount and Amount Outstanding.

● By adjusting the accounts tab first you will be able to see the undistributed amount

on the invoice screen and use that amount needed in the Adjustment Amount field

● Go to Tasks menu to select “Manually Complete”

● Save/Close - Creates a History Record


Receipt Transactions Transactions to create accruals for cash receipts can be done starting on July 2, 2018.

Go to Finance – AR – Receipt Transactions After July 1, 2018, the system will default to 2019 {2018/2019}

Change the date to 2018 {2017/2018} to create accrauls for FY18

Click New to open a batch

DO NOT Combine Fiscal Years in Receipt Transactions

Click on the Items Tab to add Receipt Types

Click New to add Receipt Types in Rcpt Type Field

For AR Receipts, this can be processed using

Enter AR Receipts

Receipt Transactions

Receipt Transactions are all types of deposits in batch format


Enter required fields

Click New to enter more items

Check the Errors/Warning field for missing Data

Save/Close

Go to Task to Post Receipt Batch Data


Status changed to Completed

Batch Id will need to be submitted in Receipts

Submit Receipts Transactions in Receipts Go to Finance – AR – Receipts

Search for Status: Open

OR Transaction Batch Id

Go to Task to Submit for Deposit

Once Receipts are approved, After July 2, 2018, send to SCOE as usual


AFTER Close of FY18

Example #4: When an AR was set up and not received against

“Manually Complete”

Go to Finance – AR – Invoices

Search Criteria:



● Click Go

● Do not make changes to Item or Accounts Tab

● From the Tasks menu, select “Manually Complete”

This will create a journal in FY19 that will credit the 9210 and debit the 8XXX revenue

This will affect FY18 for the amount that was not received

Example #5: For a receivable that was partially received against but will

not be totally cleared

Go to Finance – AR – Invoices Search Criteria:


● Fiscal Year: Blank out

● Click Go

● Do not make changes to Item or Accounts Tab

● From the Tasks menu, select “Manually Complete”

This will force a journal in FY19 that will credit the remaining 9210 balance and debit the

8XXX revenue for the difference between what was set up and what was not received.

This will affect FY18 for the amount that was not received