Welcome to AR352: Creating and Maintaining Deposits

1. Welcome to AR352:Creating and Maintaining Deposits

2. First Things First 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 A 15 minute break mid-morning is planned Bathrooms / Snacks

3. Icebreaker Get to know your fellow participants

4. Training Materials Overview

5. Participant Guide • 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!

6. Concept Slides • 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

7. Business Process Flows • Used to present the flow of either business processes or information within SMART

8. Activity Guide • 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

9. Activity Types • 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

10. User Productivity Kits (UPKs) • 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.

11. Job Aids • 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

12. Course Evaluations • 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

13. Questions

14. Course Objectives After completing this course, you will be able to: • Explain the end-to end process of deposits including key terms and user roles • Explain different payment and deposit types including viewing, processing, setting entries to post and updating • Explain payment worksheets • Explain Payment Predictor

15. Lesson 1

16. Lesson Objectives After completing this lesson, you will be able to: • Define key deposit terms • Understand the end-to-end process of deposits • Understand the roles involved in the deposit process

17. Key Terms

18. Key Terms

19. End-to-EndDeposits Process

20. Deposit Roles

21. Questions

22. Lesson 2

23. Lesson Objectives After completing this lesson, you will be able to: • Explain the payment life cycle and payment statuses • Enter a deposit and explain the different deposit types • Enter direct journal payments • Understand Payment Predictor • View groups set to post

24. Deposit Key Concepts • There is one type of deposit used by the State of Kansas: Regular Deposits • You can update deposit information at any time prior to applying the payments. Otherwise, only customer or item reference information is available for modification. • Receiving Deposits – There are several ways to receive deposits: • EFT –The only type of automated or interfaced EFT payment is electronic revenue for credit card and eCheck revenue. That interface is controlled and maintained only by the State Treasurer’s Office. • Mail – Any form of payment received in the mail • Point of Sale • In Person • The more information that you can provide on the Payment Worksheet page, the easier it will be to work with the payment worksheet

25. Payment Life Cycle and Payment Status

26. Payment Status • Unidentified– Indicates payment was entered without customer or reference information. All payment information can be changed as appropriate at this point. • Identified – Payment has customer ID or payment references. All information for the payment can be changed as required • Directly Journalled – Payment was entered in a regular deposit and was marked for direct journalizing. No changes can be made to the payment in this state. • Worksheet – Indicates payment has a saved worksheet that is not marked for posting to the receivables system. You can change the identifying information for the payment or assign it to the Payment Predictor if accounting entries have not been created. You cannot change deposit information, payment amounts, IDs, or dates. • Applied– Indicates payment is applied and either the accounting entries have been created online or the payment has been set to post. You cannot change any deposit or payment information after you save the entry pages in this state. • Complete – Assigned after AR Update in SMART successfully posts the payment. You can review the payment information but not change it. To change any information for a posted deposit, you will need to create a deposit adjustment.

27. Direct Journalled Payments • There are four steps to process a Direct Journal payment: • Select a payment for direct journaling on the Regular Deposit Entry –Payments page • Create accounting entries for the payment on the Direct Journal Entry –Accounting Entries page and mark the entries complete • Before JournalGenerator is run, the agency would need to approve, State Treasurer’s Office would need to approve, State Treasurer’s office would need to perform a daily release, and budget check would need to run • The Journal General process sends the entries to the General Ledger

28. We will now complete Activity 1 and Activity 2 in your Activity Guide

29. Entering and Posting Deposit Adjustments • Deposit Adjustments are used to move money from one funding string to another and to correct previously posted Update must be run.

30. We will now complete Activity 3 and Activity 4 in your Activity Guide

31. Payment Predictor • The Payment Predictor process automatically matches payments with open items for a customer based on a predefined payment predictor method, which will include Item ID, Customer, and Payment amount. In order to run the PaymentPredictor process, the payments must have some identifying information such as Item ID, Customer ID, and Amount, and the deposit must be in balance. • There are three elements to payment predictor – Item ID, Customer and Amount. All three of these must match 100% or Payment Predictor will not make the match. • The Payment Predictor process looks at the customer reference information to determine the customer ID. This will be set at the Business Unit level. • Payment Predictor does not generate accounting entries. In order for Payment Predictor to completely process a payment, Receivable Update must be run.

32. We will now complete Activity 5 and Activity 6 in your Activity Guide

33. Questions

34. Lesson 3

35. Lesson Objectives After completing this lesson, you will be able to: • Use worksheet actions including applications, selection, unidentified payment, and partial payment • Apply payments to a worksheet • View, create, and set entries to post • Locate and view item activities and other item groups

36. End-to-End Process of AR Update • The AR Update process is a batch process that is used to update customer balances and create accounting entries. However, the State of Kansas requires that accounting entries be created online before the AR Update process is run. It takes groups from all of the worksheets that are set to post, where accounting entries have not been created online, and creates the pending item records. • The AR Update process job is the only method that SMART Accounts Receivables uses to update posted information. • The AR Update determines whether the accounting date for the payment application activity is in an open period for the business unit and transaction type in SMART Accounts Receivables. It also determines whether the accounting date is in the same period for both SMART Accounts Receivables and SMART General Ledger. If the accounting date is not within an open period for the receivable business unit, AR Update issues a posting error.

37. Receivable Update End-to-End Process

38. Using Worksheet Selection • You use the procedure of Worksheet Selection to match payments with existing items to close open items. If you determine that you need to make changes, you can clear the selection criteria and rebuild the worksheet. You can create a worksheet for a payment only after a deposit containing that payment has been entered into Accounts Receivable. • Notice that the Worksheet Selection page is keyed by the deposit business unit. Payment Worksheets are not used for the entire deposit; they are for the individual payments that are contained in the deposit.

39. Using Worksheet Applications • The purpose of Worksheet Application is to apply payments to an item on the payment worksheet and select posting options for the payment. You can also create adjustments, and prepayments as needed to balance the worksheet. • You use the Worksheet Application page to achieve a zero balance with the items and payments that are contained on the worksheet. An out-of-balance worksheet cannot be posted. Achieving a zero balance may be as simple as selecting the item or items that equal the payment amount, or it may require selecting an item and creating a new item for the remaining amount, or writing off the remaining amount.

40. Using Worksheet Actions • Applying payments is a process of matching payments received from customers with open items. You can apply payments using payment worksheets and the payment predictor. You use the worksheet action procedure to apply payments to an item on a payment worksheet and to select posting action for this payment.

41. Building a Worksheet for an Unidentified Payment • During the Payment process, you match payments with existing items to close open items. You can create a worksheet to facilitate this process. If you need to make changes, you can clear the selection criteria and rebuild the worksheet. • An example of an unidentified payment is a payment that was entered through a regular deposit or a cash receipt. Or, a payment ID was entered but no customer or payment reference information was provided. After clearing the selection criteria and rebuilding a worksheet, you can change all payment information fields.

42. We will now complete Activity 7 in your Activity Guide

43. Building and Applying Payments on Worksheets for Underpayments • After you create a worksheet, you can sort and categorize the items listed on it and determine how to apply or write off items. You can also create adjustments and prepayments to balance the worksheet. • The Payment Worksheet provides a method that enables you to manually apply payments to items and make partial payments.

44. We will now complete Activity 8 in your Activity Guide

45. Applying Payments on a Worksheet • Before you apply payments, you must perform these tasks: • Enter items into SMART • Enter payments into SMART

46. We will now complete Activity 9 in your Activity Guide

47. Creating and Setting Entries to Post • You will review the created accounting entries before posting them into the general ledger. To apply payments to an item on the Payment Worksheet, you can select posting options for the payment. • After entering payments and applying them to open items, you need to update customer balances and create accounting entries. Accounting entries are generated according to the entry types and associated system functions that are indicated on the worksheets.

48. Viewing Payment Activities • You use inquiry pages to view customer balances and summaries of other payment activities at the business unit level. SMART enables you to view a single-line summary of each payment-related activity.

49. We will now complete a UPK simulation: Viewing Payment Activities

50. Questions