Application and Unapplication of Payments in Financial Systems: Guidelines and Process Review

1. Session Number 3Application & UnapplicationAntonio Trepesowsky BSFC CalB SGHE

2. Agenda • Application of payment • What is it • Why run it • How often to run • Order of processing • Batch vs. on-line • Review of parameters • Unapplication of Payment • What is it • Why run it • How often to run • Batch vs. on-line • Batch Selection Criteria • Review of Parameters

3. Application of Payment: What is it? • Process in which payments are applied to charges • Balances of payment transaction are reduced • Balances of charge transactions paid are reduced • TGRAPPL – Batch job • Review all accounts • Use a population selection • Runs on-line for a single account • TSIAPPL – displays the transaction combinations

4. Application of Payment: Why Run It? • To reduce the balance on charges, in order to understand what is still outstanding • To reduce the proper receivable in the General Ledger • To determine what is PAID vs. PAST DUE for late charges

5. Application of Payment: How Often To Run It? • Daily • Ad Hoc – working on an account

6. Application of Payment: Order of Processing • Direct Payments (TPays) • Direct Invoice number • Like Detail Codes with the same term • Priority Order within* • Student order different than Finance • Sorting is performed first for payments then charges • Refund to any priority TGRAPPL parm 2 • Negative charge to any priority TGRAPPL parm 3

7. Application of Payment:New Order of Processing • Direct Payments (TPays) • Direct Invoice number • Special Lender Account • Like Detail Codes with the same term • Contract Payment Detail • Priority Order within* • Student order different than Finance • Sorting is performed first for payments then charges • Refund to any priority TGRAPPL parm 2 • Negative charge to any priority TGRAPPL parm 3

8. Application of Payment: Order of Processing • FINANCE • Priority Order within • Priority Code of Payment (desc) • Payment Effective date • Payment transaction # • Priority Code of Charge (desc) • Charge Effective date • Charge transaction #

9. Application of Payment: Order of Processing • STUDENT • Priority Order within for Payments • Title IV TGRAPPL parm 5 • Order by Term TGRAPPL parm 8 (1 or 2) • Cross Reference Info TGRAPPL parm 4 • Priority Codes • Like term indicator (within Priorities) • Like Aid Year (within Priorities) • Oldest effective date • Lowest Transaction number

10. Application of Payment: Order of Processing • STUDENT • Priority Order within for Charges • Order Charge by payment (TIV/nonTIV)* • Like term indicator • Like Aid Year • Order by Term TGRAPPL parm 8 (1 or 3) • Cross Reference Info TGRAPPL parm 4 • Priority Codes • Oldest effective date • Lowest Transaction number

11. Application of Payment: Order of Processing • Order Charge by payment • TIV – Non-Institutional only sorted if TVAAUTH records exist (PY, TIV) • Institution Charge same term • Non-Institutional Charge same term • Institutional Charge same Aid Year • Non-Institutional Charge same Aid Year • Institutional Charge other terms • Non-Instutitional Charge other terms • NonTIV – no sort

12. The Big Picture • Direct Payments (TPays) • Direct Invoice number • Special Lender Account • Like Detail Codes with the same term • Contract Payment Detail • Priority Order within • Payments • Title IV TGRAPPL parm 5 • Order by Term TGRAPPL parm 8 (1 or 2) • Cross Reference Info TGRAPPL parm 4 • Priority Codes Finance • Like term indicator (within Priorities) • Like Aid Year (within Priorities) • Oldest effective date Finance • Lowest Transaction number Finance • Charges • Order Charge by payment (TIV/nonTIV) • TIV – Non-Institutional only sorted if TVAAUTH records exist (PY, TIV) • Institution Charge same term • Non-Institutional Charge same term • Institutional Charge same Aid Year • Non-Institutional Charge same Aid Year • Institutional Charge other terms • Non-Instutitional Charge other terms • NonTIV – no sort • Like term indicator • Like Aid Year • Order by Term TGRAPPL parm 8 (1 or 3) • Cross Reference Info TGRAPPL parm 4 • Priority Codes Finance • Oldest effective date Finance • Lowest Transaction number Finance • Refund to any priority TGRAPPL parm 2 • Negative charge to any priority TGRAPPL parm 3

13. Application of Payment: Order of Processing • Priority Codes: • 999 is the highest priority (will be paid first) • 000 is the lowest priority (usually used for payments) • 0 is the wildcard for payments only • Any position that is non-zero in the payment priority must match the charge priority exactly • wildcard is column specific • 990 will pay priority 999, 998, 997, 996, 995, 994, 993, 992, 991, 990 • 900 will pay priorities from 999 – 900 • 890 will pay priority 899, 898, 897, 896, 895, 894, 893, 892, 891, 890 • 800 will pay priorities from 899 - 800

14. Application of Payment: Batch vs. On-line • Batch (TGRAPPL) • Run job for: • All accounts • Individual • Population selection • Parameters can be changed • On-line (TSAAREV, TSADETL) • Run for an individual • Can not adjust the parameters • Uses parameters from GJAPDEF

15. Application of Payment: Review Parameters

16. Application of Payment: Review Parameters • ID number • Used only if you are running for a single person • Allows you to change parameters for a single account • Apply Refund to any priority • Refund applies to any detail code, regardless of the priority codes • Apply Neg Chg to any priority • A negative charge is treated as a payment • Acts like priority code 000 • Apply Cont/Expt Credits • C or D • C = Cross-reference information • View cross-reference info on TSADETL • D = Detail Code Priority • View priority on TSADETC

17. Application of Payment: Review Parameters • Apply Title IV first • Will apply Title IV detail codes before other priorities • Apply Aid to Future Term • Transactions with a source of “F” apply to a later term • Fall will apply to Spring • Spring to apply to Summer • Will not go beyond “Like Aid Yr” or “Like Term” if checked • Apply Other to Future Term • Transactions not from Fin Aid apply to a later term • Fall apply to Spring • Spring apply to Summer • Will not go beyond “Like Aid Yr” or “Like Term” if checked • Order by Term • 1 = order both payments and charges • 2 = order payments only • 3 = order charges only • 4 = neither by term

18. Application of Payment: Review Parameters • Print Application Pending Roster • Report of accounts • A credit balance will not apply to a charge balance • Need to review to see if acceptable • What would be acceptable? • Title IV not paying unallowable charges • Contracts not paying beyond cross-ref transactions • Selection Identifier • Application Code • Creator ID • User

19. Application of Payment: How to Review • TSIAPPL

20. Unapplication of Payment: What Is It? • Breaks apart application of payments • Brings the balance back to transactions • Sets the “re-apply” flag in application of payments • TGRUNAP – Batch job • Review all accounts • Use population selection • TSAUNAP – On-line job • Individual account • TSAMUNA – works with TGRUNAP select mode

21. Unapplication of Payment: Why Run It? • To clean up accounts • Use later payments to cover charges • Change the way application of payment applied.

22. Unapplication of Payment: How Often To Run It? • As needed • Account by account • Batch run in conjunction with TGRAPPL • Daily • Weekly • Monthly

23. Unapplication of Payment: Batch Selection Criteria • Only selected accounts are unapplied • Must meet 1 of 3 criteria • Title IV • Title IV is posted and credit balance exist and non-Title IV transaction paid institutional charges • Unapplication of payment has not been run since Title IV was posted. • Offsetting transaction • A debit balance and a credit balance exist and will not apply to each other • Unapplication of payment has not happened since the credit was posted • Reversing charge • A reversing charge has been posted • Unapplication of payment has not happened since the reversing entry was posted

24. Unapplication of Payment: Review of Parameters

25. Unapplication of Payment: Review of Parameters • Run Mode (S,U,B) – options for running the job • S = Select mode – accounts that meet the criteria • Populates TSAMUNA • U = Unapply mode – used for population selection only • Unapplies TSAMUNA • B = Both – accounts that meet criteria and the pop sel • Unapply Automatically – Y or N – • Set to N to only use population selection • Set to Y to unapply the pop sel as well as any selected accounts • Selection Identifier • Application Code • Creator ID • User ID

26. Unapplication of Payment: Review of Parameters • Term Code – unapply transactions by term code (Pop Sel Only) • Applied Date – unapply all transactions after a specific application date (Pop Sel Only) • Output Popsel Option (A, R, N) – • A = Append • R = Replace • N = None • Output Selection Identifier – name of popsel for accounts unapplied • Output Application Code – application code of popsel of accounts unapplied • Output Creator ID – creator of popsel of accounts unapplied

27. Summary • Application of Payment should be run at least daily • Run Unapplication of Payment before application of payment on a regular basis • Unapplication of payment does not unapply all accounts, just selected accounts