Welcome to AR351: Creating and Maintaining Receivables

1. Welcome to AR351: Creating and Maintaining Receivables

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 Two breaks and a one hour lunch are planned Bathrooms / Snacks

3. Hello • Name, Agency Name • What kinds of customers do you have at your agency? • What would you like to get from today’s session?

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: • Understand specific receivables terms • Understand the end-to-end process for receivables in the Accounts Receivables and Billing modules • List and describe the roles involved in creating and maintaining receivables • Enter and review receivables with specific information • Maintain and update receivables with specific information • Understand transfer receivables • Understand account aging and communication • Understand collections and exceptions management

15. Lesson 1

16. Lesson Objectives After completing this lesson, you will be able to: • Define key terms, including receivables, item entry, customers, aging, batch processing, posting, and Receivable Update • Describe how receivables fits into the end to end process of Accounts Receivable and Billing • List and describe the roles involved in creating and maintaining receivables

17. Defining Key Terms for Receivables • Receivable – An expectation to receive payment for goods or services sold • Item Entry – Entering invoices, debit memos, and credit memos • Customers – Entity that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers • Aging – This process of allowing a user to view the time that has passed since customers were billed or a pending item was established • Batch Processing – The process of running a series of programs or “jobs” in the system without the need for user action

18. Defining Key Terms for Receivables • Posting – An automated process of creating and recording accounting entries in SMART • Posting Statuses – Not Posted, Errors, Complete • Receivable Update (AR Update) – The posting process in SMART Receivables is known as AR Update. The AR Update process occurs throughout the system as you post pending items. These pending items can be entered online, created by your billing interface, created during payment processing, or during item maintenance activities. AR Update runs hourly.

19. What Does Receivables Do? • Designed to support multiple item and payment processing functions • Reduces the need to store extra data and thereby associated maintenance, reconsolidation, and accurate data integrity • Stores large quantities of information and supports many functions, you can control the amount of data that you work with by selecting only the information that you need

20. End-to-End Accounts Receivable and Billing Process

21. Receivables Lifecycle Process

22. Accounts Receivable Roles • AR Agency Administrator – This role is responsible for approving agency deposits in addition to creating and updating customers and customer information. • AR Configurator – This role is responsible for setting up and maintaining values that are used for some AR fields, such as payment terms an aging categories. They also have the ability to correct history for effective dated rows. • AR Maintainer – This role is responsible for reviewing and maintaining Accounts Receivable information, including customer, contact, deposit, item, and payment information. • Pending Item Processor – This role is responsible for creating pending items, credit, and debit memos. This role also views customer, payment, and deposit information.

23. Lesson Summary In this lesson, you learned: • How to define key terms for receivables processing • How to describe how Receivables fits into the end-to-end process of Accounts Receivable and Billing module • How to describe the roles involved in creating and maintaining receivables QUESTIONS?

24. Lesson 2

25. Lesson Objectives After completing this lesson, you will be able to: • Enter data for pending items, including online items (group) and external item (group) • Create accounting entries and set them to post • Enter entry type • Enter reason code • Locate and view all items with detail • Locate and utilize the Review Items page • Update pending items

26. Working with Pending Items • Pending Items –Amountsthat are billed to a customer but not paid. These are any receivable item that has not yet been posted to an account in SMART. Pending items can be entered in two ways, manually as online items or received as external items from a billing program, such as SMART Billing. • Online Pending Items – Pending items that are entered manually. When you enter pending items, you enter control information for the group and detailed information about each item. • External Items – Pending items from a billing program, such as SMART Billing. External items are edited by SMART so that errors are discovered during posting instead of during pending item activity

27. Working with Pending Items • Create Accounting Entries and Setting Them to Post – The posting process in SMART Receivables is known as AR Update. The AR Update process occurs in SMART as you post pending items. These pending items can be online, external, created during payment processing, or during item maintenance activities. • When you post items in SMART Receivables, SMART processes groups of pending items to update a customer’s balance and creates balanced, valid accounting entries. These accounting entries are then passed to the General Ledger by a process called the Journal Generator.

28. We will now complete a UPK Simulation: Viewing all Items With Detail

29. Working with Pending Items – Entry Type • Every receivable transaction in SMART must have a valid Entry Type associated • Entry Types categorize pending items that create or update posted items in SMART • Examples: Invoices, payments, debit memos, credit memos, overdue charges, and write-offs • Entry Types in combination with Entry Reason Codes provide the line of distribution for each pending item that is entered in SMART

30. Working with Pending Items – Entry Type (cont’d) • Automatic Entry Type –Defines how SMART assigns Entry Types (write-offs, payment on account) and Entry Reasons to pending items that are being paid or maintained.  Automatic Entry Types are used on worksheets (payment, maintenance, and transfer).  • Examples of Automatic Entry Types: write-offs, payment on account   • Item Entry Type –Categorize pending items that create or update posted items within the system • Examples of Entry Types: payments, debit memos, credit memos, and write-offs

31. Working with Pending Items • Every receivable transaction in SMART must have a valid Entry Reason Codes associated • Entry Reason Codes categorize different uses for a single Entry Type • Entry Reason Codes in combination with Entry Types provide the line of distribution for each pending item that is entered in SMART • Multiple entry reasons can be assigned to a single entry type • Entry reason codes can be used for: Invoice or debit memos, credit memos, pre-payments, on-account payments, deductions, write-offs (debits and credits, remaining debit and credits, underpayments and overpayments), adjustments for underpayments and overpayments, credit refunds, creating new debits and credits, and offsetting items

32. We will now complete Activity 1 in your Activity Guide

33. Updating Pending Items You have the ability to update pending items before it is picked up in AR Update. • Find an existing value • This will only pull up items that have not yet been posted • You MUST set your posting status to Do Not Post before you can update data • Update your item(s) • Create accounting entries • Set the pending item(s) to post

34. Lesson Summary In this lesson, you have learned to: • How to create accounting entries and set them to post • How to enter data for pending items including, entry type and reason code • How to locate and view group status, all items with detail, groups not set to post, and any item group • How to utilize the Review Items page • How to update pending items QUESTIONS?

35. Lesson 3

36. Lesson Objectives After completing this lesson, you will be able to: • Change a payment term • Apply debit and credit memos to each other • Understand what processes are utilized within worksheets and how worksheets are used • Clean up accounts with a maintenance worksheet and review maintenance worksheet item account entries using debit/credit memos and write-offs • Enter a multi-item update • Unpost an item group • Unpost a maintenance group

37. Key Terms • Payment Terms – are used to calculate net due dates • Maintenance Worksheets –A maintenance worksheet is a workspace for offsetting, writing-off, or adjusting posted items. You can also use maintenance worksheets to refund an item with a credit balance or to create a new refund item for a credit remaining from maintenance tasks.

38. Change Item Pay Terms • Item Due Date – Modifying the payment terms of an item requires changing the due date of the item by updating single item information • This process can only be done on one customer at a time • By changing the payment terms, SMART updates the Item Due Date based upon the selected term change

39. Cleaning Up Accounts Using Maintenance Worksheets • A maintenance worksheet is a workspace for offsetting items, write-offs, or adjustments for cleaning up posted items • Maintenance worksheets are used to refund an item with a credit balance or to create a new refund item for a credit remaining from maintenance tasks

40. Maintenance Worksheets using Debit and Credit Memos • Maintenance items can be: • Credit memos, debit memos, invoices, adjustments, on-account payments, or payments • Maintenance worksheets in SMART allow you to offset debit and credit memos • Credit and Debit Memos must be created as new pending items • The new memos are not available on a maintenance worksheet until AR Update has run • When entering pending item memos, utilize the following Item ID’s • Credit Item ID: XXX-CR • Debit Item ID: XXX-DR

41. Maintenance Worksheets and Item Account Entries • You can create online accounting entries on maintenance worksheets transactions, and can review these entries on the Accounting Entries page before they are processed • The only Accounting Entries you can edit online for items on a worksheet are user-defined for write-offs • Accounting entries for matched items are system-defined and cannot be edited online

42. We will now complete Activity 2 in your Activity Guide

43. Multi-Item Update • SMART Receivables provides two methods for simultaneously changing field values of multiple items – automatically using the Mass Change Application Engine process or manually. • To update manually, change the field values for selected items on the Item List page. • Note: The SOK uses Muliti-Item Update to change payment terms only. Multi-Item Update cannot be used for more than one customer at a time.

44. We will now complete a UPK Simulation: Entering Multi-Item Updates

45. We will now complete Activity 3 in your Activity Guide

46. We will now complete Activity 4 in your Activity Guide

47. Unposting Item and Maintenance Groups • Unposting items can only be done after AR Update has processed the item(s) • Unposting creates a group of items that is the exact opposite of the original item, which includes new item activities and accounting entries • Unposting Reasons are NSF(Non-Sufficient Funds), Wrong Cust (Wrong Customer), Wrong Inv (Wrong Invoice), and Retrnd Chk (Returned Check). • After the group has been successfully posted by AR Update, the item(s) are unavailable for editing. They can only be “viewed”. • If you encounter an error in your group(s), and you wish to unpost, if AR Update has not yet run, simply set the posting status of the group to “Do Not Post”. • At this time you can return to your original item(s) and create the necessary updates

48. We will now complete Activity 5 in your Activity Guide

49. Lesson Summary In this lesson, you learned: • How to change a payment term • How to apply debit and credit memos to each other • How to maintain and review worksheets using debit/credit memos and write-offs    • How to do a multi-item update • How to unpost an item group • How to unpost maintenance groups • How to view Item Audit History QUESTIONS?

50. Lesson 4