Statewide Financial System Program 1 AR 220 Creating and Maintaining Deposits AR 220 Creating and Maintaining Deposits Welcome

Statewide Financial System Program 2 Refrain from side conversations Obey building safety rules and regulations Silence cell phones, PDAs, refrain from checking Ask Questions Take breaks as needed Ground Rules

Statewide Financial System Program 3 Learning Objectives After completing this course you should be able to:  Explain the payment lifecycle, payment statuses, and key points about deposits and sole custody checking accounts vs. the general check account.  Enter deposits.  Apply payments.  Review payments.  Explain the scope of SFS AR training.  Locate additional training materials, job aids, and other useful Information.

Statewide Financial System Program 4 Training Methodology  Training Steps  Tell Me – Facts, Concepts, Terms, Definitions  Show Me – Relevant Demonstrations of Process Steps  Let Me – Hands-on practice in User Productivity Kit (UPK)  Help Me – Facilitator Support  Training Materials  Course Presentation  UPK Simulations  User Guide and Job Aids

Statewide Financial System Program 5 Agenda  SFS AR / BI Terms and Concepts  Introduction to Deposits  Entering Deposits  Applying Payments  Reviewing Payments  SFS AR / BI Learning Path and Resources

Statewide Financial System Program 6 In this lesson, you should learn:  Key SFS AR terms and concepts.  Key SFS AR process changes.  SFS AR ChartField overview. SFS AR Terms and Concepts

Statewide Financial System Program 7 SFS AR Terms and Concepts Term / ConceptDefinition Item A receivable, invoice, payment, credit memo, or debit memo. Deposit Method of recording the receipt of payment for goods sold or services provided. Regular deposit Standard method for entering a deposit. Miscellaneous Receipts can only use Regular Deposits. Express deposit Method of entering a deposit that applies payments to items at the same time. Requires the Item ID(s) for the payments. Direct journal payment Miscellaneous receipts (point-of-sale transactions); a payment not associated with a receivable. Payment worksheet Worksheet for manually applying payments to open receivables. Key Terms and Concepts

Statewide Financial System Program 8 SFS AR Terms and Concepts Term / ConceptDefinition Payment Predictor Payment Predictor is an SFS program that attempts to automatically match payments with open receivables. If a match is found, Payment Predictor creates the payment worksheet, applies the payment to the open item(s), and sets the payment to post. Sole custody account Bank account managed by the agency for revenue (does not include Travel & Expense, petty cash, and advance accounts). General checking account Bank account managed by OSC and Treasury. Agencies may record deposit of payments into a general checking account, however OSC verifies the information and sets those transactions to post. Key Terms and Concepts (cont.)

Statewide Financial System Program 9 SFS AR Terms and Concepts Term / ConceptDefinition Cash Basis Accounting An agency recognizes revenue when the payment is received. There is no receivable recorded. Modified Accrual Accounting The revenue accounting entries are created when a customer is billed instead of when payment is received from the customer. Key Terms and Concepts (cont.)

Statewide Financial System Program 10 Process Changes SFS AR Terms and Concepts Old ProcessNew Process In cash basis accounting, an agency recognizes revenue when the payment is received. There is no receivable recorded. In modified accrual accounting, agencies record a receivable at the time of billing. The receivable is released when the payment is received and processed. With modified accrual accounting, revenue is recognized when the receivable is created. Agencies record receipts individually in either their own system with their own COA or directly in CAS using the CAS COA. Agencies record receipts in the SFS using the new COA.

Statewide Financial System Program 11 Process Changes (cont.) SFS AR Terms and Concepts Old ProcessNew Process Agencies manage payment approval in varied ways. An approver must approve all payments within a deposit before they can be posted. Agencies manage approvals for deposits in the SFS based on segregation of duties via preparer and approver roles. Agencies send AC909 to OSC for deposit of payments to the general checking account. Agencies record deposit of payments to the general checking account in the SFS. Treasury makes the deposit at the bank. OSC verifies the deposit entered into the SFS, matches the deposit made at the bank, and approves the deposit within the SFS by setting payments to post, thereby creating the accounting entries. Agencies determine the payments (receipts) recorded to sole custody accounts. All participating sole custody account transactions are recorded in the SFS.

Statewide Financial System Program 12 Process Changes (cont.) SFS AR Terms and Concepts Old ProcessNew Process Agencies receive a daily report from OSC of all revenue transactions. Agencies view their accounts within the SFS and see when OSC sweeps (transfers) occur. The current policy for "Performing Collection" is not consistently applied across programs and revenue sources. SFS supports collection processing. Agencies have the opportunity to develop specific policies and procedures.

Statewide Financial System Program 13 SFS AR Terms and Concepts  At the transactional level, the SFS Chart of Accounts is comprised of two elements:  General Ledger Business Unit (BU) – Defined for each entity that maintains and reports on its own transactional data.  ChartFields – Codes used to categorize financial and budget transactions. Statewide ChartField segments include Department, Program, Fund, Account (CAS Object code). Agency-specific ChartFields include Operating Unit and Product.  The SFS Chart of Accounts may be explored further in the GL 105: Introduction to Chart of Accounts course.  More details about the SFS Chart of Accounts may be obtained at: 

Statewide Financial System Program 14 Introduction to Deposits In this lesson, you should learn:  How deposits work in SFS.

Statewide Financial System Program 15 Introduction to Deposits Understanding the Payment Lifecycle  The life cycle of a payment begins with its receipt by an agency.  When you receive the payment for deposit or the deposit information, you enter it in SFS by providing some identifying information. This identifying information can be customer ID, MICR ID, or item ID.

Statewide Financial System Program 16 Introduction to Deposits Understanding the Payment Lifecycle (cont.)  After balancing deposits, you apply the payments that are associated with specific items. This involves linking open items with payments. This can be done manually using the express deposit feature of SFS or using a payment worksheet. Payment application may also be performed automatically, using Payment Predictor.  If you use a worksheet for a payment, you can make adjustments for each pre-payment, on-account payment, write off and deduction.

Statewide Financial System Program 17 Introduction to Deposits Understanding the Payment Lifecycle (cont.)  If a payment is not associated with an item, the payment can be handled as a miscellaneous cash receipt, and entered into SFS as a direct journal payment. In such a situation, you can skip the step of applying the payment and move to the next step in the life cycle, which is journaling the payment.  After the payments are posted in SFS, accounting entries are created and customer accounts are updated with their respective payments.

Statewide Financial System Program 18 Introduction to Deposits Understanding Payment Status  When a payment is processed it has a payment life cycle. At each stage of the payment lifecycle, the payment has a different status.  The status indicates the information that can be changed for the payment at a particular stage of the lifecycle. This status depends on the payment entry method that was used and the way in which the payment was last processed.

Statewide Financial System Program 19 Introduction to Deposits Payment StatusDefinition Unidentified The payment was entered without customer or reference information. All payment information can be changed as appropriate at this point. Identified The payment has customer ID or payment references, and all information for the payment can be changed as required. Identified - express Identifying information for the payment is entered in the receivables system but the payment is not marked for posting. Again, all payment information can be modified at this stage. Directly journalled This status implies that the payment was entered in a regular deposit and was marked for direct journalizing. No changes can be made to the payment in this state. Payment Statuses (cont.)

Statewide Financial System Program 20 Introduction to Deposits Payment StatusDefinition Worksheet This status indicates that the payment has a saved worksheet that is not marked for posting to the receivables system. In this state, identifying information for the payment can be changed, or it can be assigned to the Payment Predictor, if accounting entries haven't been created. However, any deposit information such as payment amounts, IDs, or dates, may not be changed. Applied Applied indicates that the payment is applied and either the accounting entries have been created online or the payment has been set to posted. You cannot change any deposit or payment information after you save the entry pages in this state. Payment Statuses (cont.)

Statewide Financial System Program 21 Introduction to Deposits Payment StatusDefinition Complete After the payment is successfully posted by the receivable update program in SFS, it is assigned the status Complete. Information about the payment can be viewed but not changed. To change any information for the payment, the payment would need to be unposted. Payment Statuses (cont.)

Statewide Financial System Program 22 Introduction to Deposits Sole Custody Account Deposits  Access to sole custody bank accounts in SFS is determined by bank account security, i.e. agency users will only be able to see and record deposits to bank accounts that they have been assigned to during bank account security role mapping.  For sole custody account deposits, agencies record the deposit in SFS and deposit the money into the bank account. An agency AR approver approves the deposit in SFS. After agency approval, accounting entries will be posted to the GL.

Statewide Financial System Program 23 Introduction to Deposits General Checking Account Deposits  All agency AR preparers will have access to record deposits against the general checking account.  For general checking account deposits, agencies record the deposit in SFS and sends a paper document (i.e. AC 909 form) to Treasury to deposit the money in the bank account. Once the money is deposited, OSC BAO receives the AC 909 and deposit listing before approving the deposit in SFS that the agency user entered. After OSC approval, accounting entries will be posted to the GL.

Statewide Financial System Program 24 Entering Deposits In this lesson, you should learn:  How to enter deposits

Statewide Financial System Program 25 Entering Deposits Transactions  Entering a regular deposit  Entering an express deposit  Entering a direct journal payment

Statewide Financial System Program 26 Learning Exercise Entering a regular deposit You have received payments from two different customers. Invoice and item information was not included in the remittance.  You must create a regular deposit, which contains two payments. 20 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

Statewide Financial System Program 27 Learning Exercise Entering a direct journal payment You have received a check from a company that is not a regular customer with your agency. You need to record the miscellaneous receipt.  You must create a direct journal payment, and generate the accounting entries associated with the payment. 20 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

Statewide Financial System Program 28 Applying Payments In this lesson, you should learn:  How to apply payments.

Statewide Financial System Program 29 Applying Payments Key Points  In SFS, end-users can use worksheets to work with payments, items, and doubtful receivables.  Agencies should enter business unit, customer, or item criteria to build a worksheet of open items for payment application.  Payment worksheets let you pair open items to unapplied payments. Worksheets may be used for multiple transactions:  Applying payments  Performing adjustments  Creating new open items  SFS Payment Predictor may be utilized to automate the payment application process. The program attempts to match payments with open items; if a match is found the worksheet is auto-generated and set to post by the program.

Statewide Financial System Program 30 Applying Payments Transactions  Using worksheet selection, application and actions  Applying a partial payment  Applying an overpayment  Applying a payment on account/prepayment  Setting entries to post

Statewide Financial System Program 31 Reviewing Payments In this lesson, you should learn:  How to review payments.

Statewide Financial System Program 32 Reviewing Payments Transactions  Viewing payment groups  Viewing groups set to post  Viewing all deposits  Viewing incomplete payments  Viewing incomplete deposits  Viewing payment status  Viewing cash received by unit

Statewide Financial System Program 33 Learning Exercise Viewing incomplete deposits Periodically you review incomplete deposits that have been entered for your agency, in case you need to follow up with your Agency Receivable Preparers.  You must search for incomplete deposits. 15 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

Statewide Financial System Program 34 Learning Exercise Viewing payment status You entered a payment in a regular deposit and a direct journal payment recently. You want to review the payments to see the status of these payments.  You must use the Payment Status inquiry to locate the two payments and to review the payment status for each record. 15 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

Statewide Financial System Program 35 SFS AR / BI Learning Path and Resources In this lesson, you should learn:  The SFS AR / BI training structure.  Where to find training materials and resources.

Statewide Financial System Program 36 SFS AR / BI Learning Path and Resources SFS AR and Billing Training Structure AR / BI 101 Introduction to SFS Accounts Receivable and Billing AR 205 Creating and Maintaining SFS AR / BI Customers BI 210 Creating and Processing Billing BI 305 Billing Processes for Managers AR 215 Creating and Maintaining Receivables AR 220 Creating and Maintaining Deposits AR 310 Creating and Maintaining Receivables for Managers AR 315 Creating and Maintaining Deposits for Advanced Users

Statewide Financial System Program 37 Training Materials Location and Class Preparation SFS AR / BI Learning Path and Resources Location ILT Course Materials &id=123:trainer-materials&catid=83:training-toolkit&Itemid=667 All Training Courses &id=127:training-courses&catid=83:training-toolkit&Itemid=662 Job Aids and Reference Materials &id=124:job-aids-and-reference-materials&catid=83:training- toolkit&Itemid=668 Training Toolkit &id=116&Itemid=661

Statewide Financial System Program 38 Summary Having completed this course, you should now be able to:  Explain the payment lifecycle, direct debits, and lockbox deposits.  Enter deposits.  Apply payments.  Review payments.  Explain the scope of SFS AR training.  Locate additional training materials, job aids, and other useful Information.

Statewide Financial System Program 39 Thank you for your participation! Conclusion

Statewide Financial System Program 40 Slides for Agency Use (Arial, Font 36) Agency specific Heading (Arial font 24)  Topic 1. (Arial Font 20)  Topic 2.  Topic 3.  Topic 4.  Topic 5.

Statewide Financial System Program 41 Slides for Agency Use (Arial Headings, Font 36 for single line, 32 for double lines) In this lesson you should learn: (Arial font 24)  Topic 1. (Arial Font 20)  Topic 2.  Topic 3.  Topic 4.  Topic 5.

Statewide Financial System Program 42 Slides for Agency Use (Type Topic here) Term / ConceptDefinition Term / Concept name (Arial Font 18) Definition of Term / Concept (Arial Font 16) Agency Specific Key Terms and Concepts (Arial Font 24)