bar 101-2006 -customer accounts -accounts receivable -cashiering presenter:tim henry, cpa green...
TRANSCRIPT
BAR 101-2006-Customer Accounts
-Accounts Receivable -Cashiering
Presenter: Tim Henry, CPAGreen River Community College
Financial Analyst Accounting Instructor
Overview
For today’s training we have tried to add some of both…
Frame work-broad
Purpose of Customer Accounts How charges get onto a customer’s account Some of the tables associated with Customer
Accounts How accounting entries are created from
Customer Accounts Customer Accounts reports Updating Customer Accounts and Ledgers
Overview
….some of both
Important detail information that is………
Fee Calculation-Linda and Becky
Sub Ledgers-Mary and Teresa
Overview
Goals for this part of the training Basic understanding of Customer Accounts
Stimulate ideas and questions that you can take back and work on.
Provide a couple of examples Debt type table Charge status table Transaction code table
Overview of Customer Accounts.
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
What is the purpose?
To record charges, payments, and refunds
To provide an account balance and history
To generate invoices and reports
Customer OrdersCustomer OrdersCustomer OrdersCustomer Orders
Customer Accounts
Walk up orders
Mailed in orders
Phoned in orders
On-line orders
Customer Orders = ChargesCustomer Orders = ChargesCustomer Orders = ChargesCustomer Orders = Charges
Student Management System (SMS)
SM7001
FMS Customer Accounts
Cashiering Screen
BM1600
Customer Activity Maintenance Screen
BM1620
Fee Calc
Tables
purpose… to record charges…how do charges get on the CA
Tables
Customer PaymentsCustomer PaymentsCustomer PaymentsCustomer Payments
WEB Credit Card or Echeck (Cashiering
Batch)
FMS Customer Accounts
Cashiering Screen BM1600
Customer Activity Maintenance Screen
BM1620
purpose… to record payments…how do payments get on the CA
Customer AccountCustomer AccountCustomer AccountCustomer Account
Extended the customer credit?
FMS Customer Accounts
Refused to ship the order?
Order shipped but partial balance still owing
What if the charges (orders) are not paid?
3rd Party
Voucher /Letter
Accounts Receivable
Unofficial Enrollment
Dropped from Classes
Unofficial Enrollment
Partial Payment (?)
Accounts Receivable
Customer RefundsCustomer RefundsCustomer RefundsCustomer Refunds
FMS Customer Accounts
The customer returns the order...drops the class…decides not to take the test…overpaid and is due money back
SMS refund process 100%-80%-40%
Cashiering Screen-credit charge created
Cashiering Screen-prepayment
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Account Balance and History
The CA database provides for gathering all if this information (charges, payments, refunds) into one customer’s record or account.
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Account Balance and History
Balance or history since last purge date (archive/purge process…)
Balance or history by year/quarter
Balance or history by fee code
Primarily BM 1625-Customer Account Activity
BM 1620-Customer Activity Maintenance
BM1600-Cashiering Screen-balance
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Definition…tables
Fee Code-two character abbreviation for account code (more detail in fee calculation training)
Debt Type-two character designation that determines transaction code
Transaction Code-two character code that determines general ledger debit (s) and credit (s)
Charge Status-Two character designator of where the charge is in sequence (cycle)
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Definition…tables
Unofficial charge-unpaid charge that has not been recorded in the accounting records. The charge only exists in Customer Accounts Database.
It is like the order has been placed, but no payment or arrangement for payment has been made. Are we going to deliver the service or not?
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Accounting Entries
A student registers for class and the charges generated from the fee calculation are posted to the customer account….initial charge status is unofficial
Scenario 1. They pay the amount due
Scenario 2. They have a third party sponsor
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Accounting Entries
Charge Status Table--BM1025
System Defined
User Defined
Add new charge status or change charge status
UO (Unofficial) must always be first and PD (Paid) must always be last in sequence (cycle)
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status: Scenario 1
By processing the payment you are changing the status:
FROM: UO-Unofficial: No accounting entries have been created for this charge
To: PD-Paid: Accounting entries created
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
When the status of the charge changes, the Debt Type Table-BM1020 determines the transaction code by looking at the change from charge status UO to PD (and takes into consideration the
fiscal year) and identifies 023 as the Transaction Code.
Default debt type 01
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
The Transaction Code Table-GA1093 identifies 1110 (cash) as the GL to debit, and 3210 (cash revenue) as the GL to credit.
A transaction has been prepared and batched to record the revenue (D batch-Cashier)
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Accounting Entries
Transaction Code Table—GA1093
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Simple example,
Follow this flow from charge status to debt type to transaction code, to batch.
Recognize that there are other components of these tables that I have not touched on. It would take hours to go through the detail.
Think framework, add detail from user manual
Scenario 1 Student Registers
Fee Calculation
Charges Posted to
Customer Account
Payment Posted to
Customer Account
Scenario 1
Q: What is the Debt Type? A: 01
(None in BM1620, BM1626, BM1001)
Go to default 01 Debt Type Table
Scenario 1 Debt Type Table
Q: What was the Charge Status? A: Unofficial
Q: What is the status being changed to? A: Paid
Q: Is it in this fiscal year? A: Yes
Transaction Code is 023
Go to Transaction Code Table
Scenario 1 Transaction Code table
Q: What is the fund type? A: 5
Debit GL 1100 and Credit GL 3210
Q: Are the other transaction edits okay? A: Yes
Q:Should this be posted to files other than the GL ? A: Yes
Batch transactions in D?
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Accounting Entries
A student registers for class and the charges generated from the fee calculation are posted to the customer account….initial charge status is unofficial
Scenario 2. They have a third party sponsor
A little more on Charge Status
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status: Accounts Receivable
UO-Unofficial: No accounting entries have been created for this charge
UB-Unbilled: Accounting entries have been created but no invoice has been prepared
IN-Invoiced: Accounting entries have been created and invoice prepared
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status: Accounts Receivable
The charge has a status of UO on the student account.
The charge is transferred from the student account to the 3rd party account.
The debt type of the 3rd party determines the initial status when adding a new charge –debt type 12 = UB.
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status: Accounts Receivable
UB-Unbilled: Accounting entries have been created, debt type table = 051-1318/3205 FA or D? batch, but no invoice has been prepared
The charge status remains UB until ?...billing date, end of refund period, quarterly….
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Accounting Entries
Debt type table identifies 051 as the transaction code
Transaction code table identifies GL debit/credit….
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status: Accounts Receivable
When you are ready to bill this 3rd party, there is a job running every night (or you can turn it on/off) that will:
Identify and extract the charge
Change the status to IN (creating accounting entries)-assign invoice date and number.
Prepare an Invoice and Report
FG088DCustomer Accounts Billing This job group extracts customer accounts charges and produces various billing documents
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status: Accounts Receivable
The Billing Schedule Table-BM1023 (as determined by hierarchy) determines which charges get included in the job
This one is the quarterly schedule and runs everyday to pick up any A563 charges.
When we bill the bulk of the 3rd parties near the end of the quarter we will change that over to A564
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status: Accounts Receivable
When you are ready to bill this 3rd party, there really is only one right way IN-Invoiced: Accounting entries have been created and invoice prepared
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status: Accounts Receivable
When you are ready to bill this 3rd party, there really is only one right way IN-Invoiced: Accounting entries have been created and invoice prepared
Scenario 2 Student Registers
Fee Calculation
Charges Posted to
Customer Account
Charges Transferred
from Student Account
to 3rd Party Account
(Auto App-Manual)
Scenario 2
Q: What is the Debt Type? A: 12
(None indicated in BM1620)
BM1626 Debt Type is 12,
Go to 12 Debt Type Table
Scenario 2 Debt Type table
Q: What was the Charge Status? A: Un billed
Q: What is the status being changed to? A: Invoiced
Q: Is it in this fiscal year? A: Yes
Transaction Code is 052
Go to Transaction Code Table
Scenario 2 Transaction Code table
Q: What is the fund type? A: 5
Debit GL 1312 and Credit GL 1318
Q: Are the other transaction edits okay? A: Yes
Q:Should this be posted to files other than the GL ? A: Yes
Batch transactions in 24-..
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
UO UB IN
Transfer charge –FA or D batch
or Change charge status-23 batch
Change status to IN and invoice-24 batch
Now what…..?
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
UO UB IN I2 DQ
Accounts Receivable aging and follow up
I2-Second Invoice-no accounting entries
DQ-Delinquent-no accounting entries
CA-Collection-no accounting entries
WF-Write off-accounting entries
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status:
Payment Schedule BM1021
Automatic update of charge status-generates report BM1759 and creates batch 23, if accounting entries are needed!
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
At GRCC we said, we want
A report each day that identifies the accounts that remain unpaid 30 days after the invoice date…
And 45 days,….and 90 days
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
This automatic update will identify and extract charges that fit into the payment schedule parameters, and change the status as indicated.
The debt type table determines no accounting transactions (blank)
Report is used to identify accounts for follow up.
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
How do we select charges to be include in the automatic update of charge status job?
Payment Schedule
BM1620
BM1001
BM1626
….drives to BM1021-Payment Schedule and follows the sequence from there
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Accounting Entries
Debt Type Table--BM1020
From Status To Status Current Deferred
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Accounting Entries
Debt Type Hierarchy
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
At GRCC we said, we want
A report each day that identifies the accounts that remain unpaid 30 days after the invoice date…
And 45 days,….and 90 days
Customer AccountsCustomer AccountsCustomer AccountsCustomer Accounts
That Payment Schedule will bring a charge to your attention three times if it remains unpaid.
Daily report BM1759
Together with the aging report-BM1710
= effective AR monitoring and follow up
Customer Accounts ReportsCustomer Accounts ReportsCustomer Accounts ReportsCustomer Accounts Reports
Customer Accounts Aging Report-BM1710
What do you want to see?
BM1022-Aging Format Table
Reference Dates
Age by invoice date not charge date (system assigns)
Charge Status
Customer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts DatabaseCustomer Accounts Database
Charge Status:
UO-Unofficial: No accounting entries have been created for this charge
UB-Unbilled: Accounting entries have been created but no invoice has been prepared
IN-Invoiced: Accounting entries have been created and invoice prepared
Customer Accounts ReportsCustomer Accounts ReportsCustomer Accounts ReportsCustomer Accounts Reports
Customer Accounts Aging Report-BM1710
What do you want to see?
What
How many different reports?
Charge status
Customer Accounts ReportsCustomer Accounts ReportsCustomer Accounts ReportsCustomer Accounts Reports
Customer Accounts Aging Report Job-BM1710J
What do you want to see?
Sort
Format
Select by Debt Type…. One report to include only student accounts—make all student charges debt type SA on charge in BM1620
Customer Accounts ReportsCustomer Accounts ReportsCustomer Accounts ReportsCustomer Accounts Reports
Customer Accounts Aging Report Job-BM1710J
What do you want to see?
Sort
Format
Select by Debt Type….
The story so far.pdf
CA SL GLCA SL GLCA SL GLCA SL GL
Updating records
Customer Accounts is updated immediately-real time-right now—If the change in charge status results in accounting entries, then the entries will be batched and manually or automatically released.
Cashiering = D? Batch ID
Customer Accounts Maintenance = ?? (individual’s) Batch ID
Billing Schedule = 24 Batch ID
Payment Schedule = 23 Batch ID
Third Party Sponsorship = FA Batch ID (Auto App)
CA SL GLCA SL GLCA SL GLCA SL GL
Updating records
Accounts Receivable Sub Ledger is updated once batch is released.
General Ledger is updated during the nightly posting routine.
CA CA = = SL SL == GL GLCA CA = = SL SL == GL GL
The three should balance…
..everything in the AR Sub Ledger is supported by the Customer Accounts (by Customer Account number)
..everything in the AR General Ledgers is supported by the AR Sub Ledger (by APR/PRG/ORG.)
CA CA = = SL SL == GL GLCA CA = = SL SL == GL GL
It takes a lot of work….
Summary level balance, does SL = GL?
Reconcile by GL
total 1312, 1318…
Reconcile by Apr-Prg-Org and GL
CA CA = = SL SL == GL GLCA CA = = SL SL == GL GL
Timing differences-
Consider what is in CA that would not be on AR SL or GL…Unofficial charges and those that have been written off.
Rolling the AR SL up by Apr-Prg-Org to the GL
Rolling the AR SL down by customer ID to the CA
Sub LedgerSub LedgerSub LedgerSub Ledger
Later, Mary and Teresa are going to talk about Sub Ledgers. One of the keys to reconciling is to ensure that all charges that should purge are doing so. There are many reasons why a charge won’t purge, some very simple, others not so much. Keeping the SL “clean” greatly reduces the problems and time spent reconciling.
BAR 101-2006-Customer Accounts-Accounts Receivable -Cashiering
Purpose…..Charges, payment ,refundsBalance and historyInvoicing and reports
Tables…………Charge StatusDebt TypePayment ScheduleBilling Schedule
BAR 101-2006
Reports…..BM1759-Change of Charge StatusBM1710-Customer Accounts Aging
Accounting entries.Combination of debt type and charge status
Batched Record updating