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SAS2000

Advance Billing and Receipting

User Guide

Advance Billing and Receipting Copyright: Human Edge: November, 2006

Screen Images from version 5.0.1120

Human Edge Software Corporation Pty Ltd 417 City Road

South Melbourne Vic 3205

Support Centre: 1300 301 931

© Human Edge Software Corporation Pty Ltd, Melbourne 2005

Updated November 2006




Table of Contents

Intended Audience........................................................................................... 4 School Group Abbreviations............................................................................... 5 Check Accounting Type..................................................................................... 6

RECEIPT IN ADVANCE 7 Overview ....................................................................................................... 7 Receipt GL Account Selection............................................................................. 8 Set Default GL Account for Unmatched Receipts.................................................. 11 Receipt for Next Year without Advance Billing ..................................................... 13 Receipt Enrolment Deposits for Next Year.......................................................... 15 Applying Credits to Bills in the New Year............................................................ 16

ADVANCE BILLING AND RECEIPTING ADVANCE BILLS 18 Overview ..................................................................................................... 18

Billing in Advance 19 Overview ..................................................................................................... 19 Before Billing in Advance ................................................................................ 20 Bill GL Account Selection................................................................................. 21 Billing Next Year’s Fees Dated This Year ............................................................ 22 Forward Date Bills to Next Year........................................................................ 24

Receipting for Next Year 26 Overview ..................................................................................................... 26 Receipt Fees Billed in Advance – Dated This Year ................................................ 27 Receipt Fees Billed in Advance on Forward Dated Bills .......................................... 28



Intended Audience

Applies To This document is aimed at:

Cash accounting schools that have a requirement to receipt or bill in advance for next year. Accrual accounting schools – Receipting Only Only the advance receipting information up to and including page 16 applies to accrual schools. Advance billing in accrual accounting has very specific requirements. This document does not cover those requirements. If you need to advance bill you will need to discuss with your business manager or accountant the implications of doing so and the various procedures that will need to be put in place. If you are not sure if your school is cash accounting or accrual accounting then refer to the topic ‘Check Accounting Type ’ for instruction on checking this setting in your database.

Audience The Intended Audience for the Advance Billing and Receipting user

guide is people who use SAS2000 to manage and maintain the school’s fee payer accounts.

Prerequisites The document assumes that you have a strong knowledge of and

experience working with financial data and records within SAS2000.

Assumed Knowledge

It is assumed that the user is proficient in the following tasks in SAS2000: • Setting Up Student and Family Fees. • Fee Generation. • Posting Transactions. • Entering Receipts.



School Group Abbreviations

Introduction How advance receipts and bills are processed varies slightly depending on

your school’s reporting requirements and your accounting type. We have identified that there are three possible groupings that schools will come under for this document. Your school will belong to only one of these groups. In this document we will use abbreviations to identify information that is specific to a particular group. The abbreviations we have used to identify the three types are: • Reconciliation • Cash Non Rec • Accrual The definitions for each grouping are listed below.

Reconciliation The abbreviation Reconciliation refers to schools that are:

• Primary schools in the Victorian Catholic diocese of Ballarat, Melbourne, Sale or Sandhurst

• Cash accounting schools that run the School Fee and Tuition Reconciliation reports in SAS2000.

Cash Non Rec The abbreviation Cash Non Rec refers to cash account schools that do

not use the School Fee and Tuition Reconciliation reports. Note: The School Fee and Tuition Reconciliation reports are primarily a Victorian Catholic Primary School reporting requirement.

Accrual The abbreviation Accrual refers to schools that use accrual accounting.

Accounting type

If you are not sure if your school is cash accounting or accrual accounting then refer to the topic ‘Check Accounting Type ’ for instruction on checking this setting in your database.



Check Accounting Type

Introduction If you are unsure if your database has been set to use cash or accrual

accounting you can check the accounting type that has been set.

To Check Follow the steps in the table below to check your accounting type.

Step Action 1 Select MAINTENANCE } SETUP } APPLICATION tab.

Result: The application details for SAS2000 will open.

2 Check the accounting type topic to determine what type is specified.

3 Either Cash or Accrual will have a dot beside it.

Example: This database is accrual accounting.

4 Note: If your ACCOUNTING TYPE displays as Debtors Cash

and Creditors Accrual.

This means that your database is running in Cash Accounting mode, except for the Creditors module which is running as accrual. You are cash accounting for the purposes of the ‘Advance Billing and Receipting’ document.



Receipt in Advance

Overview

Introduction You can receipt advance payments without billing.

Note: Information on receipting against advance bills is contained later in this document in the section ‘Receipting for Next Year’.

Contents This chapter contains the following topics:

Topic See Page Receipt GL Account Selection 8 Set Default GL Account for Unmatched Receipts 11 Receipt for Next Year Without Advance Billing 13 Receipt Enrolment Deposits for Next Year 15 Applying Credits to Bills in the New Year. 16



Receipt GL Account Selection

Important You need to ensure you select the correct GL account on the receipt. The

GL account selected will vary depending on your school’s policies and your accounting requirements. The GL account selection on receipts, for the different school groups, is looked at below. Refer to the topic ‘School Group Abbreviations ’ to determine which group you are a part of for this document.

Cash Non Rec Select the appropriate GL account according to your school policy and

accounting requirements. Suggestion You may want to set up a liability account for Fees in Advance to record these payments. The reason a liability account is suggested is because liability accounts are not reset to zero at the end of the financial year, this allows the value of this account to be carried over to the new year where it can be cleared out as the amounts are applied to the new year bills. Default the Unmatched receipt account. If you have set up a Fees in Advance liability GL account use this account as the default GL account for unmatched receipts. Otherwise select an appropriate GL account according to your school policy and accounting requirements. Refer to the topic ‘Set Default GL Account for Unmatched Receipts’ for details of how to set a default account.

Continued on next page



Receipt GL Account Selection, Continued

Reconciliation These schools have a requirement that any payments receipted in the

current year that apply to the next year must be recorded in PREPAID GL accounts. Note: Reconciliation schools run an Arrears Consolidation process at the start of the new year to reclassify the prepaid amounts carried forward to be current in the new year. Whether the Prepaid GL account or the Current GL account is selected depends on the date entered on to the receipt and which year the payment relates to. Examples: The following examples assume that the school financial year is 1s t February to 31s t January. Receipt Date Money for GL Account November 2006 2007 Prepaid January 2007 2007 Prepaid February 2007 2007 Current

Default the Unmatched receipt account In Term 4 you may want to set the default account to a Prepaid GL account. This will reduce the number of transfers you will need to enter, to move credits to be prepayments, at the end of the year. The assumption with this is that in term 4 the majority of amounts receipted as unmatched will be prepayments for the next year. Remember you can adjust the GL account at the time of receipting. On the 1st February (assuming your school financial year is the 1s t February to 31st January) you would change the default account to a Current GL account. This is because at the start of the year you will have a period where you will be entering all fee payer receipts as unmatched receipts until the Arrears Consolidation process has been run. By allocating the amounts to the current account you will be able to use the Fee Credit Matching function, after the Arrears consolidation process has been completed, to automatically match the credits to the bills. Note: If you are entering a receipt that is to be treated as a prepayment then you would adjust the GL account on that receipt accordingly. Example: This example assumes your school financial year is the 1st February to 31st January. In February you are entering a receipt for a direct deposit on the January Bank Statement, that has been missed, and the payment is for the new year’s fees. In this case even though you are entering the receipt in February the receipt date will be January and the payment is for the new year so the prepaid GL account will need to be selected. Warning: All receipts, for the financial year being closed, need to be entered before the Arrears Consolidation process is run. Refer to the topic ‘Set Default GL Account for Unmatched Receipts’ for details of how to set a default account.




Receipt GL Account Selection, Continued

Accrual When receipting money to the unmatched tab of the receipt in accrual

systems ideally you should select your Accounts Receivable GL account. This will ensure that the money is recorded in a way that makes it easier for you to reconcile your Debtors Aged Trial Balance to your Account Receivable account. This method will enable the ‘Include Accounts Receivable Comparison’ option on the Aged Trial Balance report to work. Definition: The Accounts Receivable account is the GL account that records the outstanding amounts on your debtors. You may refer to this account by a different name. Variation and Consequence If you have chosen to use a different GL account to record the fees paid in advance then this GL account must to be on your balance sheet, so that at the end of the year whatever money is recorded in this account is retained and will carry forward to next year to be matched off against bills. For ease of reporting this account is best set up as an asset account next in sequence to the Accounts Receivable GL account on your Chart of Accounts. This will enable these accounts to be totalled on your Balance Sheet report, which will make reconciling these accounts to your debtors aged trial balance easier. Note: With this set up the GL account recording the fees paid in advance will display as a negative asset account. A liability account can be used for recording fees paid in advance but on the Balance Sheet report the Accounts Receivable account and the fees paid in advance account will show in different sections of the report. In this case the Balance Sheet report will not be able to display a combined total for these accounts. The ‘Include Accounts Receivable Comparison’ option on the Aged Trial Balance report will not work with the fees paid in advance not being allocated to the account receivable account. The GL section, displayed when ‘Include Accounts Receivable Comparison’ is selected, will not include the fees paid in advance GL account. If you use this method you will need to total the Accounts Receivable and the Fees Paid in Advance GL accounts together to get the total debtors amount and compare this to the total of the Aged Trial Balance when performing your debtors’ reconciliation. Default the Unmatched receipt account. Select your Accounts Receivable account as your default account for unmatched receipts. If you are using the variation method and have a separate balance sheet account for recording fees paid in advance then select this account as your default unmatched receipt account. Refer to the topic ‘Set Default GL Account for Unmatched Receipts’ for details of how to set a default account.



Set Default GL Account for Unmatched Receipts

Introduction You can set up a default GL account for unmatched receipts.

Even if you set a default account you can still change the GL account used on the unmatched tab when you are entering the receipt. Note: If you leave the default account blank you will be prompted to enter a GL account for any unmatched amounts, this will ensure that you select the GL account on a receipt by receipt bases. However if you use EFT Receipts you need to specify a default account for unmatched receipts for the EFT receipt function to operate.

Step by Step Follow the steps in the table below to set a default GL account for

unmatched receipts.

Step Action 1. Select MAINTENANCE } SETUP

Result: The GENERAL tab will be displayed.




Set Default GL Account for Unmatched Receipts, Continued

Step by Step (continued)

Step Action 2. Select DEFAULT ACCOUNTS button.

Result: The Default Accounts window will open of the FEES & RECEIPTS tab.

3. Set an appropriate GL account to be the default account for

UNMATCHED RECEIPTS. Examples: Some GL account code selection examples are: School Group GL Account Reconciliation Term 4 a Prepaid Income Account, eg

Prepaid Compulsory Tuition. Start of the school financial year a Current Income Account, eg School Fees

Cash Non Rec Fees in Advance account. Accrual Accounts Receivable account

Refer to ‘Receipt GL Account Selection ’ for detailed information on selecting an appropriate GL account.

4. SAVE and EXIT the form.



Receipt for Next Year without Advance Billing

Introduction Here we look at the process of receipting advance payments where next

years fees have not been billed in advance but parents have started to pay for next year. The money is receipted to the unmatched tab to create a credit on the fee payer’s account that can be applied in the new year.

Step by Step Follow the steps in the table below to receipt money received for Next

Year where the fees for next year are not billed in advance.

Step Action 1 Select RECEIPTS u RECEIPTS.

Result: The Receipts form will open.

2 Select the required fee payer. 3 Click on the UNMATCHED TAB. 4 Enter the amount against the appropriate GL account.

Note: Do NOT match off the amo unt against the existing bills; for the current year. This transaction will put a Credit onto the contacts account.




Receipt for Next Year without Advance Billing, Continued


Step Action Examples: Some GL account code selection examples are:

School Group GL Account Reconciliation A Prepaid Income Account, eg Prepaid

Compulsory Tuition. Cash Non Rec Fees in Advance account. Accrual Accounts Receivable account

Refer to ‘Receipt GL Account Selection ’ for detailed information on selecting an appropriate GL account.

WARNING: When you receipt against this contact in the future you will be asked do you want to apply existing credits. Be careful not to apply this credit, for next year’s fees, to the current year bills for the contact. This credit should only be applied to the bills in the new financial year.

5 Click on the RECEIPT tab and enter details for the payment. 6 SAVE and POST the receipt.



Receipt Enrolment Deposits for Next Year

Deposit that will be applied to next year’s fees

To receipt an enrolment deposit that will be applied to next years bills follow the receipting instructions ‘Receipt for Next Year without Advance Billing’. Note: The amount entered for the enrolment deposit will affect the balance on the contacts account. When printing the statements, enter a comment onto the statements to explain that if the family have paid an enrolment deposit for next year it will be shown on the statement and will be included in the statement total but it will not be applied to the fees until next year. The enrolment deposit will put a credit onto the contacts account. When you receipt against this contact in the future you will be asked do you want to apply existing credits. Be careful not to apply this credit, for next year’s fees, to the current year bills for the contact. This credit should only be applied to the bills in the new financial year.

Booking fee If the enrolment deposit is a booking fee and will NOT be applied to the

fees for next year then this amount is entered as a sundry receipt to the appropriate GL Account.



Applying Credits to Bills in the New Year

Introduction As the advance payments are being entered onto the fee payer’s accounts

as unmatched receipts they are creating an overpayment credit on the fee payer’s account. While you do not want to match this credit off against bills in the current year, when you get to the new year you will want to apply the outstanding credits to the outstanding bills on the fee payer’s account.

Applying Credits to Bills

There are three methods that you can use to match the outstanding credits to the outstanding bills on the fee payers.

1. Run the Fee Credit Matching function. Refer to the ‘Fee Credit Matching ’ user guide for more information.

2. Create a zero value receipt for the fee payer to match the credit to the bill. Refer to the topic ‘Applying an Existing Credit to a Bill’ in the ‘Credits and Refunds’ user guide for more information.

3. Apply the credit while entering a receipt for a payment. Refer to the topic ‘Applying an Existing Credit to a Bill’ in the ‘Credits and Refunds’ user guide for more information.

These documents are available on the Documentation & Downloads section of our web site. http://www.humanedge.biz Note: The bills for the new year need to be created and posted to be outstanding for the credit to be applied to them. Bills are generally raised in February of the new year (assuming your school financial year is the 1s t February to 31st January). Except in the case of some fees which may be advance billed, or fee that are scheduled to be raised later in the year.




Applying Credits to Bills in the New Year, Continued

Reconciliation Schools in the Reconciliation group need to be aware of the following.

You will need to have completed the Arrears Consolidation process before you can do this. There is a restriction in the software to ensure that the Arrears Consolidation process has been run before you will be allowed to match receipts in the new year. This is to prevent processing errors that would put the School Fee and Tuition Reconciliation reports out of balance. (Refer to the topic ‘School Group Abbreviations ’ to determine which group you are a part of for this document.)



Advance Billing and Receipting Advance Bills

Overview

Introduction The rest of this document is specific to creating bills in advance and the

receipting of advance bills. You only need to read the remainder of this document if you advance bill. Examples: The following examples assume that your school financial year runs from the 1st February to the 31st January. Bill is Raised in

Bill Date used is

Advance Bill?

November November Yes. Refer to ‘Billing Next Year’s Fees Dated This Year’

January January Yes. Refer to ‘Billing Next Year’s Fees Dated This Year’

January February Yes. Refer to ‘Forward Date Bills to Next Year’

February February No. You do not advance bill. Refer to the ‘Financial 1’ training manual for information on billing. This document is available for download from http://www.humanedge.biz/sas2000/tmlogin.asp

Accrual Schools in the Accrual group need to be aware of the following.

Advance billing in accrual accounting has very specific accounting requirements. This document does not cover those requirements. If you need to advance bill you will need to discuss with your business manager or accountant the implications of doing so and the various procedures that will need to be put in place. (Refer to the topic ‘School Group Abbreviations ’ to determine which group you are a part of for this document.)

Contents This chapter contains the following topics:

Topic See Page Billing in Advance 19 Receipting for Next Year 26



Billing in Advance

Overview

Introduction You may have a requirement to bill some of next year’s fees in the

current year. To bill in advance you only have two options. • Bill dated this year using the appropriate GL accounts. You can

receipt against these bills in the current year. • Forward date the bills to next year and use the appropriate GL

accounts. You should not apply receipts to these bills until next year.

In this Chapter

This section contains the following topics.

Topic See Page Before Billing in Advance 20 Bill GL Account Selection 21 Billing Next Year’s Fees Dated This Year 22 Forward Date Bills to Next Year 24



Before Billing in Advance

Introduction There are a number of things to be aware of before billing in advance.

They affect how you bill and indicate areas where manual adjustments may be required to some bills.

Considerations The following points need to be taken into consideration when billing in

advance:

1. You MUST use the correct G/L ACCOUNT linked to the correct FEE CATEGORY on the fee for the bill date you will use on the generation.

2. You can’t generate fees for STUDENTS AND ENROLMENTS at the

same time.

3. If billing ENROLMENTS, you will need to ensure you ONLY bill for next year’s enrolments and not any you might have for future years.

4. STUDENTS that are flagged as having left but their record is still

in the student area will be included in the billing. These bills will need to be manually adjusted.

5. STUDENTS that are flagged as inactive will not have bills raised.

To bill a student that is flagged as inactive you need to make their record active while you perform the fee generation.

6. FAMILY FEES that vary according to the number of children in a

family (e.g. a tiered billing structure, or discounts for extra children) are best billed after the Student End of Year has been completed. Otherwise the fee will be based on the number of students in the family for this year, not next year.

7. STUDENT FEES that have a multiple student discount applied are best billed after the Student End of Year has been completed. Otherwise the discount will be based on the children attending the school this year, not those attending the school in the new school year.

Points 6 and 7 will affect families with; a student in their final year at school, a student transferring to another school, or an enrolment starting in the new year. If you bill these fees prior to the Student End of Year process being run then the family fee that is billed, or the discount that is given for multiple students may require manual adjustment to correct the bill.



Bill GL Account Selection

Introduction You need to ensure you select the correct GL account on the bill. The GL

account selected will vary depending on your school’s policies and your accounting requirements. The GL account selection on bills, for the different school groups, is looked at below. Refer to the topic ‘School Group Abbreviations ’ to determine which group you are a part of for this document.

Reconciliation These schools and the Schools Fee Reconciliation and Tuition Fee

Reconciliation reports have a requirement that any money received in the current year that applies to the next year must be recorded in prepaid GL accounts. This affects the GL account selection used when advance billing. Examples: The following examples assume that the school financial year is 1s t February to 31st January. Bill Date Billing for GL Account November 2006 2007 Prepaid January 2007 2007 Prepaid February 2007 2007 Current

Note: Reconciliation schools run an Arrears Consolidation process at the start of the new year to reclassify the prepaid amounts carried forward to be current for the new year.

Cash Non Rec Select the appropriate Income GL account according to your school policy

and accounting requirements.



Billing Next Year’s Fees Dated This Year

Introduction To bill in advance for next year you can create bills dated this year

using the appropriate GL accounts.

Step by Step Follow the steps in the table below to bill in advance for next year

with the bill date as the current year.

Step Action 1 Select FEES u STUDENT FEES

Result: The Student Fees form will open.

2 Set up the fees in the usual way but select the G/L ACCOUNT that is applicable. Example: School Group GL Account Reconciliation Prepaid GL Income Accounts Cash Non Rec GL Income accounts

Refer to the topic ‘Bill GL Account Selection ’ for more information.

Note: Ensure you set the selection criteria correctly. I.e. To exclude students currently in their last year at your school, where the advance billing is done prior to the Student End of Year.

3 Setup any other relevant fees to be pre-billed for next year. 4 Select FEE GENERATION.

Result: The Fee Generation window opens.




Billing Next Year’s Fees Dated This Year, Continued


Step Action 5 Set the:

• Bill Date • Due Date • Bill Description • Generate Fees For • Fees to apply • Fiscal Year – DO NOT change leave as the default. Note: The Bill Date is in the current financial year

6 SAVE the generation details. 7 Process the generation and post the bills as per usual.

Reconciliation Schools in the Reconciliation group need to be aware of the following.

Setting the Fees to the Prepaid G/L Accounts is only done when the fees for next financial year will have a bill date in the current financial year. Important: At the start of the new year remember to change the GL account on these fees to be a current GL account. This will ensure that if you use this fee when billing in the new year you will not accidentally bill them as being prepaid for the next year. Example: A student starts in March 2007 and you raise a bill using this fee in March 2007. If the GL account is still set to prepaid the fee will be treated as being for 2008. (Refer to the topic ‘School Group Abbreviations ’ to determine which group you are a part of for this document.)



Forward Date Bills to Next Year

Introduction To bill in advance you can forward date the bills to next year.

When forward dating the bills to next year the appropriate GL account needs to be used on the fee items.

Step by Step Follow the steps in the table below to bill in advance by forward

dating the bills.

Step Action 1 Select FEES u STUDENT FEES

Result: The Student Fees form will open.

2 Set up the fees in the usual way and select the appropriate G/L ACCOUNT that is applicable. Example: School Group GL Account Reconciliation Current GL Income Accounts Cash Non Rec GL Income accounts

Refer to topic ‘Bill GL Account Selection’ for more information.

Note: Ensure you set the selection criteria correctly. I.e. To exclude students currently in their last year at your school, where the advance billing is done prior to the Student End of Year.

3 Setup any other relevant fees to be billed for next year. 4 Select FEE GENERATION.

Result: The Fee Generation window opens.




Forward Date Bills to Next Year, Continued


Step Action 5 Set the:

• Bill Date • Due Date • Bill Description • Generate Fees For • Fees to apply • Fiscal Year – DO NOT change leave as the default. Note: The Bill Date is forward dated to the start of next year

6 SAVE the generation details. 7 Process the generation and post the bills as per usual.



Receipting for Next Year

Overview

Introduction How money collected for next year is receipted will depend on the

advanced billing method used.

• If the bill was dated in the current year then just receipt against the bill as per normal.

• If the bill was forward dated to the next year, 1/2/2007, you

should not receipt against this bill until the new financial year. Enter the receipt amount onto the unmatched tab of the receipt.

• You do not bill in advance but some parents have paid in advance

for next year’s fees. Refer to ‘Receipt for Next Year without Advance Billing’ at the start of this document.

We will look at each of these methods in turn.

Contents This section contains the following topics:

Topic See Page Receipt Fees Billed in Advance – Dated This Year 27 Receipt Fees Billed in Advance on Forward Dated Bills 28



Receipt Fees Billed in Advance – Dated This Year

Introduction Where the fees for next year have been billed dated this year to the

appropriate GL accounts you receipt the money against the bill as per normal. If the money received is for next year then apply it to the bill for next year.

Step by Step Follow the steps in the table below to receipt fees billed in advance

but dated this year.



2 Select the required fee payer. 3 Click on the MATCHED TAB and match the payment against

the Next Year Fee.

Note: Be careful to allocate the Pre-Paid amount to the 2007 Fee, NOT to any outstanding current fees.

4 SAVE and POST the receipt.



Receipt Fees Billed in Advance on Forward Dated Bills

Introduction Here we look at the process of receipting advance payments where the

fees for next year have been billed in advance but the bill has been forward dated to next year. The money is receipted to the unmatched tab to create a credit on the fee payer’s account that can be applied in the new year.

Step by Step Follow the steps in the table below to receipt fees for Next Year on a

forward dated bill.



2 Select the required fee payer. 3 Click on the UNMATCHED TAB. 4 Enter the amount against the appropriate GL account.

Note: Do NOT match off the amount against the existing bills; for the current year or the bills dated next year. This transaction will put a Credit onto the contacts account.




Receipt Fees Billed in Advance on Forward Dated Bills, Continued


Step Action Examples: Some GL account code selection examples are:

School Group GL Account Reconciliation A Prepaid Income Account, eg Prepaid

Compulsory Tuition. Cash Non Rec Fees in Advance account.

Refer to the topic ‘Receipt GL Account Selection ’ at the start of this document for detailed information on selecting an appropriate GL account.

WARNING: When you receipt against this contact in the future you will be asked do you want to apply existing credits. Be careful not to apply this credit, for next year’s fees, to the current year bills or the forward dated bills. This Credit should only be applied to the bills in the new financial year.

5 Click on the RECEIPT tab and enter the details for the payment.

6 SAVE and POST the receipt.




Receipt Fees Billed in Advance on Forward Dated Bills, Continued

Applying Advance Payments

In the new year these advance payments can be applied to the outstanding bills. Refer to the topic ‘Applying Credits to Bills in the New Year’ at the start of this document for details.

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