slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Welcome to AR351: Creating and Maintaining Receivables PowerPoint Presentation
Download Presentation
Welcome to AR351: Creating and Maintaining Receivables

Loading in 2 Seconds...

play fullscreen
1 / 81

Welcome to AR351: Creating and Maintaining Receivables - PowerPoint PPT Presentation


  • 88 Views
  • Uploaded on

Welcome to AR351: Creating and Maintaining Receivables. 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!

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Welcome to AR351: Creating and Maintaining Receivables


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Welcome to AR351:

Creating and Maintaining Receivables

slide2

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

slide3

Hello

  • Name, Agency Name
  • What kinds of customers do you have at your agency?
  • What would you like to get from today’s session?
slide5

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!
slide6

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
slide7

Business Process Flows

  • Used to present the flow of either business processes or information within SMART
slide8

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
slide9

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
slide10

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.
slide11

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
slide12

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
slide14

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
slide16

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
slide17

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
slide18

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.
slide19

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
slide22

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.
slide23

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?

slide25

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
slide26

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
slide27

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.
slide28

We will now complete a UPK Simulation:

Viewing all Items With Detail

slide29

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
slide30

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
slide31

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
slide32

We will now complete Activity 1

in your Activity Guide

slide33

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
slide34

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?

slide36

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
slide37

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.
slide38

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
slide39

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
slide40

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
slide41

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
slide42

We will now complete Activity 2

in your Activity Guide

slide43

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.
slide44

We will now complete a UPK Simulation:

Entering Multi-Item Updates

slide45

We will now complete Activity 3

in your Activity Guide

slide46

We will now complete Activity 4

in your Activity Guide

slide47

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
slide48

We will now complete Activity 5

in your Activity Guide

slide49

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?

slide51

Lesson Objectives

After completing this lesson, you will be able to:

  • Build a transfer worksheet
  • Update a transfer worksheet by creating and posting data
  • Use transfer worksheet actions
slide52

Using Worksheet Actions

    • Building a Transfer Worksheet
      • A transfer worksheet is a workspace for transferring an expected bad debt or an open item from one customer to another. You can access only those open items that have been posted.
      • Customers must be in the same business unit for transferring receivables
    • Updating Data on a Transfer Worksheet
      • You can add or change items on a transfer worksheet. In addition, you can enter general or specific customer and item criteria depending on the scope of information you want on the worksheet.
    • Using Transfer Worksheet Actions
      • You can select a posting option for the transfer worksheet depending on your requirements
  • Note: If this process is done correctly, the FROM customer will not have the item in their customer items anymore, and it will be transferred to the new TO customer.
slide53

Lesson Summary

In this lesson you learned:

  • How to work with transfer worksheets
  • How to use transfer worksheet actions

QUESTIONS?

slide56

Lesson Objectives

After completing this lesson, you will be able to:

  • Define Aging and Dunning
  • Run the Aging Summary by Unit Report
  • Run the end-to-end process for customer statements
  • Run the end-to-end process of Dunning letters including processing and printing
slide57

Aging and Dunning Defined

  • Aging – The process of allowing a user to view the time that has passed since customers were billed or a pending item was established
  • Dunning – The process of methodically communicating with customers to ensure the collection of accounts receivable
slide58

Aging and Dunning Processes

The following flow chart is an overview of processes involved in Aging and Dunning.

  • Process and Print functions are optional, but the AR Update and Aging Batch Processes must be finalized before moving forward
slide59

Aging Summary Reports

  • The Agingprocess updates summary aging information that appears on various inquiry pages
  • The Aging process automatically processes all customers in a business unit
  • Aging helps to identify delinquent accounts and to assess possible cash flow issues
  • The Aging process automatically processes all customers in a business unit specified on the aging request. Use the Aging Summary By Unit Report to see aged open balances for every customer in a business unit
  • High Due history ID – is the highest amount the customer has ever owed the agency. This allows agencies to determine the risk level of customer.
  • Due – is the current amount past due
slide60

We will now complete a UPK Simulation:

Running the Aging Summary

by Unit Report

slide61

Processing and Printing Customer Statements

  • SMART enables you to generate customer statements on a regular schedule for many customers or a single statement for only one customer
  • Customer statements are based on current customer balances and open item information, which are updated by the AR Update process
  • Printing customer statements is an optional process, and should be based on agency specific scenarios
slide62

We will now complete a UPK Simulation:

Processing and Printing

Customer Statements

slide63

Processing and Printing Dunning Letters

  • SMART Receivables uses Dunning letters to communicate to customers their account receivable balance, items that make up their balance, and the age of the items in their account
  • Dunning letters are created to alert customers of overdue items and expedite the collection of outstanding accounts receivable
  • Expediting the collection of outstanding accounts receivable enhances the cash flow of agencies
  • To generate Dunning letters for specific customers, you need to run a single, two-step process
  • Note: Dunning Letters can also be run based on Dunning Group ID, and Printing Dunning letters is optional, and should be based on agency specific scenarios
slide64

We will now complete a UPK Simulation:

Processing and Printing

Dunning Letters

slide65

Lesson Summary

In this lesson you learned:

  • How to key terms including Aging and Dunning
  • How to run the Aging Summary by Unit Report
  • How to run the end-to-end process for customer statements
  • How to run the end-to-end process of Dunning Letters including processing and printing

QUESTIONS?

slide66

We will now complete Activity 8

in your Activity Guide

slide68

Lesson Objectives

After completing this lesson, you will be able to:

  • View customer history
  • View customer account information including activity summary, item statuses, accounting entries, single item entries, item payments, and outstanding item payments
  • View item groups
  • Dispute an item and add a conversation
slide69

Analyzing Customer Accounts

  • Analyzing individual customer accounts is the process of determining how well customers maintain their accounts
  • Use customer analysis to make decisions about an agency’s accounts receivable and collection policies and facilitate planning and budgeting
  • You can also use customer analysis to help minimize the agency’s exposure to bad debt
  • When analyzing customer accounts, you can view items in groups or individually (single)
  • Examples of information available in SMART are:
    • Accounting Entries
    • Disputes
    • Collections
    • Payment History
    • Due Dates
slide70

We will now complete Activity 9

in your Activity Guide

slide71

Customer Account Overview

  • Use the Account Overview component to:
    • View various customer balances
    • View the most recent item
    • View payment activity
    • View accounting entries
    • View summarized aging information
slide72

Viewing Item Groups

  • Group – During customer analysis, questionable accounts and/or items may be found. In order to resolve these questions, you must research detailed information. There are single documents that can have multiple items attached to them.
    • For example, one check can pay many invoices, one purchase order can be attached to several bills of lading and invoices, or one sales order can have multiple shipments and invoices.
  • You may need to research groups of items that relate to one another.
slide73

Disputing Items and Adding a Conversation

  • SMART Receivables enables you to put items in dispute based on internal agency notification or customer notification.
slide75

Lesson Summary

In this lesson, you learned:

  • How to view customer history
  • How to view customer account information including activity summary, item statuses, accounting entries, single item entries, item payments, and outstanding item payments
  • How to view item groups
  • How to dispute an item and add a conversation

QUESTIONS?

slide76

We will now complete Activity 12

in your Activity Guide

use the following resources
Use the following resources
  • SMART Training Website
    • http://da.ks.gov/smart/training.html
  • SMART Training Team
    • Contact us at smarttraining@da.ks.gov
  • SMART materials
    • Review, Review, Review your SMART materials after training!!
evaluation
Evaluation

Please fill out the evaluation for today’s instructor led training session!

http://www.surveymonkey.com/s/SMARTtrainingAR351