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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! - PowerPoint PPT Presentation
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AR351: Creating and Maintaining Receivables
Welcome to AR351:
Creating and Maintaining Receivables
AR351: Creating and Maintaining Receivables
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
First Things First
AR351: Creating and Maintaining Receivables
Name, Agency Name
What kinds of customers do you have at your agency?
What would you like to get from today’s session?
Hello
AR351: Creating and Maintaining Receivables
Training Materials Overview
AR351: Creating and Maintaining Receivables
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!
Participant Guide
AR351: Creating and Maintaining Receivables
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
Concept Slides
AR351: Creating and Maintaining Receivables
Used to present the flow of either business processes or
information within SMART
Business Process Flows
AR351: Creating and Maintaining Receivables
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
Activity Guide
AR351: Creating and Maintaining Receivables
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
Activity Types
AR351: Creating and Maintaining Receivables
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.
User Productivity Kits (UPKs)
AR351: Creating and Maintaining Receivables
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
Job Aids
AR351: Creating and Maintaining Receivables
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
Course Evaluations
AR351: Creating and Maintaining Receivables
Questions
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
Lesson 1
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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.
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
End-to-End Accounts Receivable and Billing Process
Billing
Accounting Entries
Maintain Items
Payment Processing
Item Processing
Customer Maintenance
Electronic Payments /
UploadsAR Update
General Ledger
Journal Generator
Journal Entries
AR351: Creating and Maintaining Receivables
Receivables Lifecycle Process
Enter Receivable Information
Create Accounting
Entries
Delete Accounting
Entries / Group
Errors?Review
Accounting Entries
Send Pending Items to Post
AR UpdatePosting Errors?
Correct Pending Item
Errors
End
No
Yes
Yes
No
AR351: Creating and Maintaining Receivables
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.
AR351: Creating and Maintaining Receivables
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?
AR351: Creating and Maintaining Receivables
Lesson 2
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
Working with Pending Items
Pending Items – Amounts that 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.o 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.
o 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
AR351: Creating and Maintaining Receivables
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.
AR351: Creating and Maintaining Receivables
We will now complete a UPK Simulation:Viewing all Items With Detail
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
We will now complete Activity 1in your Activity Guide
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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?
AR351: Creating and Maintaining Receivables
Lesson 3
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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.
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
We will now complete Activity 2in your Activity Guide
AR351: Creating and Maintaining Receivables
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.
AR351: Creating and Maintaining Receivables
We will now complete a UPK Simulation:Entering Multi-Item Updates
AR351: Creating and Maintaining Receivables
We will now complete Activity 3in your Activity Guide
AR351: Creating and Maintaining Receivables
We will now complete Activity 4in your Activity Guide
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
We will now complete Activity 5in your Activity Guide
AR351: Creating and Maintaining Receivables
Lesson Summary
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
In this lesson, you learned:
QUESTIONS?
AR351: Creating and Maintaining Receivables
Lesson 4
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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 requirementsNote: 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.
AR351: Creating and Maintaining Receivables
Lesson Summary
In this lesson you learned:
How to work with transfer worksheets
How to use transfer worksheet actions
QUESTIONS?
AR351: Creating and Maintaining Receivables
We will now complete Activity 6 and Activity 7 in your Activity Guide
AR351: Creating and Maintaining Receivables
Lesson 5
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
Aging Summary Reports The Aging process 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
AR351: Creating and Maintaining Receivables
We will now complete a UPK Simulation:Running the Aging Summary
by Unit Report
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
We will now complete a UPK Simulation:Processing and Printing
Customer Statements
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
We will now complete a UPK Simulation:Processing and Printing
Dunning Letters
AR351: Creating and Maintaining Receivables
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?
AR351: Creating and Maintaining Receivables
We will now complete Activity 8in your Activity Guide
AR351: Creating and Maintaining Receivables
Lesson 6
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
We will now complete Activity 9in your Activity Guide
AR351: Creating and Maintaining Receivables
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
AR351: Creating and Maintaining Receivables
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.
AR351: Creating and Maintaining Receivables
Disputing Items and Adding a Conversation
SMART Receivables enables you to put items in dispute based on internal
agency notification or customer notification.
AR351: Creating and Maintaining Receivables
We will now complete Activity 10 and Activity 11 in your Activity Guide
AR351: Creating and Maintaining Receivables
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?
AR351: Creating and Maintaining Receivables
We will now complete Activity 12in your Activity Guide
AR351: Creating and Maintaining Receivables
Closing the Day
AR351: Creating and Maintaining Receivables
Use the following resources
SMART Training Website http://da.ks.gov/smart/training.html
SMART Training Team Contact us at [email protected]
SMART materials Review, Review, Review your SMART materials after
training!!
AR351: Creating and Maintaining Receivables
Questions
AR351: Creating and Maintaining Receivables
Evaluation
Please fill out the evaluation for today’s instructor led training session!
http://www.surveymonkey.com/s/SMARTtrainingAR351
AR351: Creating and Maintaining Receivables
Thanks for coming and participating
today!