BAR 101-2006 -Customer Accounts -Accounts Receivable -Cashiering

1. BAR 101-2006-Customer Accounts -Accounts Receivable -Cashiering Presenter: Tim Henry, CPA Green River Community College Financial Analyst Accounting Instructor

2. 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

3. Overview • ….some of both • Important detail information that is……… • Fee Calculation-Linda and Becky • Sub Ledgers-Mary and Teresa

4. 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.

5. Customer Accounts Database What is the purpose? To record charges, payments, and refunds To provide an account balance and history To generate invoices and reports

6. Customer Orders Walk up orders On-line orders Customer Accounts Mailed in orders Phoned in orders

7. Fee Calc Tables Tables Customer Orders = Charges purpose… to record charges…howdo charges get on the CA Student Management System (SMS) SM7001 Cashiering Screen BM1600 Customer Activity Maintenance Screen BM1620 FMS Customer Accounts

8. Customer Payments purpose… to record payments…how do payments get on the CA Customer Activity Maintenance Screen BM1620 WEB Credit Card or Echeck (Cashiering Batch) Cashiering Screen BM1600 FMS Customer Accounts

9. Customer Account What if the charges (orders) are not paid? Extended the customer credit? Order shipped but partial balance still owing Refused to ship the order? FMS Customer Accounts 3rd Party Voucher /Letter Accounts Receivable Unofficial Enrollment Dropped from Classes Unofficial Enrollment Partial Payment (?) Accounts Receivable

10. Customer Refunds The customer returns the order...drops the class…decidesnot to take the test…overpaid and is due money back FMS Customer Accounts SMS refund process 100%-80%-40% Cashiering Screen-credit charge created Cashiering Screen-prepayment

11. Customer 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.

12. Customer 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

13. Customer 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)

14. Customer 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?

15. Customer 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

16. Customer 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)

17. Customer Accounts Database

18. Customer 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

19. Customer 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

20. Customer Accounts Database

21. Customer 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)

22. Customer Accounts Database Accounting Entries Transaction Code Table—GA1093

23. Customer 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

24. Scenario 1 Student Registers Fee Calculation Charges Posted to Customer Account Payment Posted to Customer Account

25. Scenario 1 Q: What is the Debt Type? A: 01 (None in BM1620, BM1626, BM1001) Go to default 01 Debt Type Table

26. 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

27. 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?

28. Customer 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

29. Customer 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

30. Customer 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.

31. Customer 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….

32. Customer Accounts Database Accounting Entries Debt type table identifies 051 as the transaction code Transaction code table identifies GL debit/credit….

33. Customer 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

34. Customer 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

35. Customer 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

36. Customer 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

37. Scenario 2 Student Registers Fee Calculation Charges Posted to Customer Account Charges Transferred from Student Account to 3rd Party Account (Auto App-Manual)

38. 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

39. 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

40. 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-..

41. Customer 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…..?

42. Customer 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

43. Customer Accounts Database Charge Status: Payment Schedule BM1021 Automatic update of charge status-generates report BM1759 and creates batch 23, if accounting entries are needed!

44. Customer 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

45. Customer 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.

46. Customer Accounts Database Charge Status

47. Customer 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

48. Customer Accounts Database Accounting Entries Debt Type Table--BM1020 From Status To Status Current Deferred

49. Customer Accounts Database Accounting Entries Debt Type Hierarchy

50. Customer 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