AST CORPORATION

1. ASTCORPORATION SPECIALIZED. RECOGNIZED. PREFERRED. Implementing an Escheatment Process Ashish Nagarkar 2nd October, 2014

2. Agenda • What is Escheatment Process • Relevance to County Business • Standard Procedure • The problem Defined • The solution provided

3. Specialized. Recognized. Preferred.

4. What is Escheatment Process ? • Escheatment is the process of identifying customer's deposit (checking, savings, etc.) and time deposit (CD) accounts that are considered abandoned and remitting the funds to the appropriate state if the customer cannot be contacted to re-activate the account. • The process of turning over unclaimed or abandoned property to a state authority, such as if a person dies without a will.

5. Relevance to County Business • County Issues refund checks to various citizens • Parking • License fees • Utility refunds etc. • Checks get lost in mail • People move • Forget to deposit, too small to deposit

6. Relevance to County Business • Checks remain ‘negotiable’ in Oracle EBS • Needs to be voided • Money to be remitted to State

7. Steps involved • Void the checks after a stipulated time • Remit the funds to State. • Remittance need to be made based on dollar value to each state.

8. & why this is an issue ? • The volume of checks • Can not do a mass void in EBS • No API for mass void • Need to remit different amounts to various states based on vendors residing…Complex calculations

9. & why this is an issue ? • The invoice / Payment is against a vendor. • How to pay a different vendor (State) without building a relationship or third party payments ? • One time vendors custom solution.

10. The solution… • 2 Parts to the solution • For standard AP invoices • For One time vendor payments

11. The solution…For Standard AP invoices • 1. Find all the ‘negotiable’ invoice • A report is generated showing all such payments

12. The solution…For Standard AP invoices • 2. Run the ‘Escheatment Process’ • This process will void all the checks without cancelling invoices. • This is a custom program

13. The solution…For Standard AP invoices • 2. The ‘Escheatment Process’ custom program • The custom program will create credit memos for each invoice. • The credit memos accounted to ‘Voided checks clearing account’ • Validate and approve Credit memos.

14. The solution…For Standard AP invoices • 3. Run a Payment Batch • Run payment batch to make zero dollar payments. • All invoices will close as they will be matched with Credit memos.

15. The solution…For Standard AP invoices • 4. Run a custom Report • The report suggests the amount to be remitted to each state.

16. The solution…For Standard AP invoices • 5. Create invoices for state remittance • AP department creates invoices based on the report. • They get the flexibility to either remit funds to the state or send it to State of Virginia.

17. The solution…For Standard AP invoices • Accounting of the solution • John Doe (residing in Florida) invoices the county for services rendered in the amount of $5,000. • He is issued a check for $5,000. The check is never deposited. A year later the County is required to remit the $5,000 to the state of Florida.

18. The solution…For Standard AP invoices Accounting of the solution • Original Invoice Payment to John Doe - AP: Dr. Expense $5,000 Cr. AP Liability (21010) $5,000 • Payment to John Doe - Dr. AP Liability (21010) $5,000 Cr. Cash $5,000 (Check # 1234) • Voiding a check to John Doe: Dr. Cash$5,000 Cr. AP Liability (21010) $5,000 (Void Check # 1234)

19. The solution…For Standard AP invoices Accounting of the solution • Credit Memo to John Doe Dr. AP Liability (21010) $5,000 Cr. Void Checks Liability (21020) $5,000 • Payment to John Doe including for Invoice and Credit Memo Dr. AP Liability $0 Cr. Cash$0 • Invoice to State Vendor: Dr. Void Checks Liability (21020) $5,000 Cr. AP Liability $5,000 (Void Check # 1234)

20. The solution…For Standard AP invoices Accounting of the solution • Invoice to State Vendor: Dr. Void Checks Liability (21020) $5,000 Cr. AP Liability $5,000 • Payment to State: Dr. AP Liability (21020) $5000 (Check # 7890) Cr. Cash $5000

21. The solution…For One time vendors • One time vendors are generic vendors • The vendor name, address is stored in DFF. • Check printing modified to use this information on Check.

22. The solution…For One time vendors • 1. Find all the ‘negotiable’ invoice • A report is generated showing all such payments

23. The solution…For one time vendors • 2. Run the ‘Escheatment Process’ • This process will void all the checks without cancelling invoices. • This is a custom program

24. The solution…For One time vendors • 2. Run the ‘Escheatment Process’ custom program • The custom program will create credit memos for each invoice. • The credit memos accounted to ‘Voided checks clearing account’ • The vendor information which is stored in DFF, is copied over to Credit memos. • ‘Pay Alone’ flag is removed on the invoices as well as credit memos.

25. The solution…For Standard AP invoices • 3. Run a Payment Batch • Run payment batch to make zero dollar payments. • All invoices will close as they will be matched with Credit memos.

26. The solution…For Standard AP invoices • 4. Run a Report (Custom) • Run the custom report. • This report groups all the invoices based on state. • The report suggests the amount to be remitted to each state.

27. The solution…For Standard AP invoices • 5. Create invoices for state remittance • AP department creates invoices based on the report. • They get the flexibility to either remit funds to the state or send it to State of Virginia.

28. Question & Answer

29. CONTACTUS. WHERE WE ARE & HOW TO CONTACT US OUR WEBSITE E-MAIL ADDRESS TELEPHONE # WWW.ASTCORPORATION.COM INFO@ASTCORPORATION.COM (888) 278-0002