Accounts Receivables Accruals FY19 account amounts will be reset to 0.00, and the FY18 account...
Transcript of Accounts Receivables Accruals FY19 account amounts will be reset to 0.00, and the FY18 account...
Accounts Receivables
Accruals
For FY18
June 20, 2018
Information Technology
AR Setup FY18 6/20/18 Workshop Page 2
Understanding the Accrual Process
The goal of year-end accrual process is to recognize revenues and expenses in the period in
which it was incurred, regardless of when payment is received or paid, to ensure accurate
presentation of revenues and expenses. Accrual basis accounting records revenues at the time
when services or sales are made rather than when cash is actually paid or received.
Escape Year End Process Overview
What you should be working on Now:
● Clear All Prior Year Receivables
● Run Receivables Activity Report (Ledger 02)
What you should be working on in July:
● Resolve Any Outstanding Items on the Year End Closing List (Fiscal 15)
● Resolve Unposted JE’s
Accrual Processing ● You must process/clear all outstanding receipts prior to processing any AR accruals
o Accrual balances are based on the last known amount remaining on the invoice o Invoice amounts will default as accrual dollar amounts for Year End Processing
o Should prevent potential data entry errors
● If a receipt has not been posted in FY18, a necessary receivable may not be accrued
o The posting from the Year-End Closing will show an error
● Documents with errors will not post
o Errors must be resolved first in Finance-AR-Invoices
● The accrual and carryover columns on the year-end list are editable, but may not be set
to a negative value
o You must clear all negative amounts. Including individual line items within an invoice that has a total positive amount. Finance-AR-Invoices
● The entire outstanding amount will be set to the accrual column because Escape Online
assumes the invoice is to be accrued
o You may carryover invoices
▪ You must manually change the accrual amount
o Watch for negative release amounts (red) when you manually change field amounts
● The accrual process will result in FY18 journal entries which establish AR’s (debits object
9229) and records revenue (credits objects 8xxx) in 2017-18.
Deadline for Cash Deposit is 6/25/18 DO NOT Enter Receipts for 2017-18 between 6/26/18 – 7/1/18.
AR Setup FY18 6/20/18 Workshop Page 3
Reminder:
o The Asset/Liability roll, which takes place after 2017-18 is closed, will move the General Ledger amounts from object 9229 in FY18 to General Ledger object
9210 in FY19
▪ The Asset/Liability roll does not roll the specific AR’s to the next fiscal
year
o Until the Asset/Liability roll is performed, there will be no balance in the FY19
general ledger object 9210 to offset the payments being made to the FY18
(accrued) receivables
NOTE: An invoice must be created first in order to process through Year-End
-OR-
a manual journal entry can be created to book receivable
****Manual Accruals of Due To/From Government Entities****
Must use 9290/9590 objects for any accruals associated with state or federal programs
(Example: Cafeteria)
Manual Journal Entries will need to be done, as the Year End Processing activity does not allow the use of objects other than 9210/9510.
Manual Journal Entries created with 9290/9590, balances will remain in these object codes during the Asset/Liability roll and will need to be manually reversed in the new fiscal year
AR Setup FY18 6/20/18 Workshop Page 4
1. Review Potential AR’s Go to Finance - Reports - Fiscal - Fiscal15
○ Run the Fiscal Year End Checklist (Fiscal15)
This provides a list of all items needing to be addressed prior to close
● Section 2 – User Options
○ Fiscal Year: 2018 {2017/2018} (System will default to 2019 after July 1)
○ Click Go
● Scroll down the Report to see outstanding AR invoices after the Requisition detail
● You cannot process invoices that have pending Receipts batches
● If Invoice is in Receipts Status, review to see if it needs to be manually
complete, or left to process through Year End Processing
AR Setup FY18 6/20/18 Workshop Page 5
● After the last cash deposit date
o You will need to cancel those receipts if unable to make deadline
o Any remaining items on the Year End Closing AR list must be accrued using the Year
End Closing Process
▪ All invoices in Printed status will accrue
o Enter your FY18 receipts in FY19 against the new accrued AR’s
The Fiscal15 Report MUST be totally clear before you can close the year
● After you work the list rerun the report to verify that there are no remaining entries
after you have processed all Printed status invoices through Year End Processing
● The report will show all types of entries
o Remember to clear every type of entry
FISCAL15 Report
MUST be clear prior to Closing FY18
AR Setup FY18 6/20/18 Workshop Page 6
2. Process Year End Closing for AR Invoices ● Provides a list specific to ARs
● Provides the screens to set up AR accruals
Go to Finance - Processes - Year End Closing
● Enter search criteria:
○ Fiscal Year: 2018 {2017/2018} (System defaults to 2019, after July 1)
○ Document Type: AR Invoice
○ Process Default = No
o NO allows you to select which invoice will move forward
o YES will automatically change ALL to process without reviewing
● Click Go to create list
Determine if Outstanding amount is Accrual, Carryover or Release
Use the quick link next to Ref # to review invoice
OR highlight invoice and click on the Preview Button
AR Setup FY18 6/20/18 Workshop Page 7
Accrual Invoice to Next Year FY19–
● Enter the amount in the Accrual field (Defaults entire amount)
● If accrual is correct as is, then change the Process field to Yes
● Prior Year Receivables can be accrued
● If accrual amount is less than invoice, the difference will be released
● Automatically sets the Process field to Yes
Invoice ACCRUAL Process
Changes the invoice fiscal year FY18, to the next fiscal year FY19
Creates Journal Entry Record to the appropriate accounts with a transaction date 6/30/18
Creates a History Record
Carryover Invoice to Next Year FY19–
● Enter zero in Accrual field
● Enter the amount in the Carryover field
● Automatically calculates the Release amount and sets the Process field to Yes
Invoice CARRYOVER Process
Does NOT create any Journal Entry Records
Adds the Next Year’s FY19 Accounts
Creates a History Record
AR Setup FY18 6/20/18 Workshop Page 8
Release the Receivable of the Invoice (Close Out) –
Sometimes it is better to just close out the invoice.
● Enter 0.00 in Accrual and Carryover fields
● Remaining balances will be released
● Automatically sets the Process field to Yes
Post Changes from the Task menu
● Go to Task Menu to select Post to process all Account Receivables flagged Yes in
Process column
● Verify that you want to process these invoices
● Be sure you agree with the posting count before clicking Yes
Invoice will be Completed
Receivable will be reversed (It will NOT reverse any
payments)
Creates a History Record
Invoice RELEASE Process
AR Setup FY18 6/20/18 Workshop Page 9
● Review the Message Column for “Post failed error”. If you hover over the error or
enlarge the column, you can see the posted failed message.
Example: Post failed, error = Amounts cannot be negative
Example: Post failed, error = Expired Accounts
● Use the quick link next to the AR # to review the AR Invoice detail
● Go to the Receipts Tab
● If Status is submitted, then the AR Receipt is still in process
● If this is after the 6/25/18 Cash Deadline, then you will need to delete the AR Receipts
● Review the Year End Closing list again to verify that these items have cleared
If you want to continue to work the Year End Closing list, be sure to go back to Search Criteria, Click Go to refresh the list.
AR Setup FY18 6/20/18 Workshop Page 10
3. Rollback Year End Processing Task
Make Changes or Update FY18 Accounts on an Invoice that has already been processed on the Year End list.
● Can be used on invoices in any status, except Canceled or Complete Status
● The FY19 account amounts will be reset to 0.00, and the FY18 account amounts will
be increased according to the amounts in the journal entries
● Receivables that were set up for FY19 will be reversed
● FY18 receivable will be re-established
● If an amount was released for FY18 prior to year-end with a carryover amount, it will
redistribute evenly to the non-receivable accounts
Go to Finance – AR - Invoices
Search Criteria:
● Enter the invoice you need to review
● Invoice Number: AR18-XXXXX
● Fiscal Year 2019
● Click Go
● Open the Invoice
● Go to Tasks
● Select Roll Back Year End Processing
● Creates a History Record of the Rollback Year End Process
● Returns the Amounts and Accounts back to original setup.
● Make the appropriate changes
● Invoice MUST be processed again on the Year End Closing list.
AR Setup FY18 6/20/18 Workshop Page 11
4. Review and Clear Journal Entries
Go to Finance – Fiscal – Journal Entries
● Post or delete all journal entries that have not been posted or cancelled
Search for JEs in the Open, Submitted or Audit status
■ The order is important as you complete or address an open status item it
could then move to the Submitted or Audit status and be missed during other
status searches
● Determine if Journal Entry should be posted or deleted
● Re-run the journal search to verify there are no outstanding journal entries
AR Setup FY18 6/20/18 Workshop Page 12
5. Review and Clear Budget Transfers
Go to Finance – Fiscal – Budget Transfers
● Post or delete all budget transfers that have not been posted or cancelled
Search for Budget Transfers in the Open, Submitted or Audit status
■ The order is important as you complete or address an open status item it
could then move to the Submitted or Audit status and be missed during other
status searches
● Determine if Journal Entry should be posted or deleted
● Re-run the journal search to verify there are no outstanding budget Transfers
AR Setup FY18 6/20/18 Workshop Page 13
6. Review AR Invoices Go to Finance – AR – Invoice
Search Criteria:
● Enter the invoice you need to review
● Invoice Number: IN18-XXXXX or AR18-XXXXX
● Blank out the Fiscal Year field to make sure you see all invoice history
● Click Go
● Open invoice
● Select the Accounts Tab from the invoice
● All activity will display in order of entry
Remember that until the Asset/Liability Roll is done for your district later in August, you will
be viewing 9229 in FY18 and 9210 in FY19 for all AR’s in the G/L for balancing. In the AR
Account Tab you will see the original FY18 Receivable, and the FY19 9210 GL Account
listed.
o Note the invoice is in FY19
o Any changes to the invoice must now be done in FY19
AR Setup FY18 6/20/18 Workshop Page 14
7. Review the Ledger02 Report
Go to Finance – Reports – Ledger – Ledger02
Run the Ledger 02- Receivables/Liabilities Activity
Search Criteria:
● Closing Year: 2018 {2017/2018}
● A/R or AP?: A/R
● Specify Invoice # to see only transactions for that invoice or leave blank to see all
(Blank is the best setting for first review)
● Cleared Items: NO – Do NOT Show Cleared Items
● JE Source?: Yes - Include all JE Source
● Unposted JE?: Yes – select unposted Journal Entries
● Can select specific account components to narrow search
● Click Go
● This report shows journal entry activity by:
o Account receivable invoice number
o Journal entry number as it relates to account receivable and/or liability setup
and clearing
AR Setup FY18 6/20/18 Workshop Page 15
o The offset objects the report uses are defined in the Ledger tab of the
Organization record
▪ The current year is set to 9229 and the prior year is set to 9210
o Journal entries that do not reference a requisition or invoice and only have an
offset account and a cash account will be excluded from the report
o The journal entries made to 9290/9590 will not be present on the report
o The description comes from the AR Invoice comment
▪ If the comment is blank, the report will use the comment from the latest
JE that is found for this reference number
o If the offset account is expired, an asterisk will show next to the amount
AR Setup FY18 6/20/18 Workshop Page 16
SETTING UP a Year End receivable WITHOUT an FY18 Invoice
Based on District practices and procedures, you can create an invoice to process through year
end –OR- go straight to receipts to deposit after 7/1/18, being careful to select the correct
year.
Create an Invoice Make sure customer exists before starting the process
Go to Finance – AR – Customer to search
Go to Finance – AR – Invoice
● Select New
● Select on 2017-18 to create in the correct fiscal year
● Fill in all the criteria required for the Invoice, Items and Accounts tabs
● Select Save/Close
● Need to Print Invoice
Print an Invoice
Go to Finance – AR – Print Invoice
● Enter your Department from the drop down menu
● Status option: Open
● Click Go (Note the list will provide you with an AR18-xxxxx invoice)
● From the List screen select the Tasks menu
● Select Print Invoices
● You do not have to actually print the invoices but you will need to select the
printer icon so the system thinks you have
● The Print Invoice Step is what moves the invoice to a status Printed and the
entry to show on the AR Year End Closing screen
Go to Finance – Processes – Year End Closing to process new invoice
***You MUST return to the Year End Processing screen and move the new invoice to FY19 to establish an AR***
AR Setup FY18 6/20/18 Workshop Page 17
Entering AR Receipts (Invoices that have been processed through Year End Closing or if no invoice created in Prior Year)
Go to Finance – AR – Enter AR Receipts
NOTE: Be careful to select the correct fiscal year; DO NOT Combine deposits for FY18 and FY19
● Enter the current date
● Bank Account: COUNTY {County}
● Enter the invoice number for Receipt #1 (IN18-XXXXX)
● Enter the Amount Received
● Receipt Type: C{Check} is default or use drop down to select
● Enter a Comment
● Continue entering AR
Receipts
● Click Go to create
batch
● From List go to Tasks to
select Submit for
Deposit
● Verify number of
receipts before
selecting Yes
****You cannot deposit money for FY18 in FY18 after 06/25/18***
AR Setup FY18 6/20/18 Workshop Page 18
***Pre-Close*** This is before 2018 Year End Close
Example #1: ALTER a receivable already processed through the ‘Year End Closing’ screen
FY18 has not been closed a data entry mistake in a year end receivable was set up. It is
recommended to use the receivable field in the Invoice Record.
● Go to Finance-AR-Invoices ○ Enter the Invoice number IN18-XXXXX ○ Clear Fiscal Year field
○ Open the Invoice
○ Go to the Accounts Tab and adjust the line item amounts, as necessary
○ Go to the Accounts Tab and Enter or Adjust the Receivable amount in the
Receivable Field of the FY18 Revenue Account
■ If the Revenue Account field is Locked the FY18 is Closed
■ Adjusting the FY18 receivable amount will automatically adjust the Revenue
Amount for FY19
○ Save/Close the Invoice
● Escape will make the appropriate changes to the revenue account and linked account that were set up for FY19
● Increasing this value will cause the revenue account amount to be decreased by the
same amount and the linked account to be increased
● When you save the invoice, Escape will create a journal entry that adjusts the revenue
for the prior fiscal year
AR Setup FY18 6/20/18 Workshop Page 19
Example #2: AR was set up and should not have been
Go Finance – AR - Invoices Search Criteria:
● Enter the invoice number you wish to edit
● Clear Fiscal Year field
● Click Go
***DO NOT USE TASKS TO RETURN TO OPEN***
● Go to the Accounts Tab enter zero as the receivable amount in FY18
Receivable fields
● If the FY19 revenue amount line shows dollars be sure to also zero out each line
● This will automatically adjusts the 9210 receivable on the screen
● Go to the Invoice Tab and enter an Adjustment Amount to clear the Undistributed
Amount and Amount Outstanding
● Both the Amt Outstanding and the Undistributed Amount fields must be zero
● Go to Tasks Menu to select “Manually Complete”
● Save/Close and a FY18 journal will be created that will alter the FY19 setup to zero
AR Setup FY18 6/20/18 Workshop Page 20
Example #3: AR was set up with the incorrect Account code - The account codes on a FY18 AR line cannot be altered
- The AR must be manually completed
Go to Finance – AR - Invoices ● Enter the invoice number you wish to edit
● Clear Fiscal Year field
● Click Go
● ***DO NOT USE TASKS TO RETURN TO OPEN***
● Go to the Accounts Tab adjust the receivable amount in the Receivable (2018) field
of the prior year revenue account to zero
● Adjust the 2018 revenue account to zero
● The 9210 receivable will automatically zero out on the screen when the first two
lines are changed to zero
● Return to the Invoice Tab and enter an Adjustment Amount to clear the
Undistributed Amount and Amount Outstanding.
● By adjusting the accounts tab first you will be able to see the undistributed amount
on the invoice screen and use that amount needed in the Adjustment Amount field
● Go to Tasks menu to select “Manually Complete”
● Save/Close - Creates a History Record
AR Setup FY18 6/20/18 Workshop Page 21
Receipt Transactions Transactions to create accruals for cash receipts can be done starting on July 2, 2018.
Go to Finance – AR – Receipt Transactions After July 1, 2018, the system will default to 2019 {2018/2019}
Change the date to 2018 {2017/2018} to create accrauls for FY18
Click New to open a batch
DO NOT Combine Fiscal Years in Receipt Transactions
Click on the Items Tab to add Receipt Types
Click New to add Receipt Types in Rcpt Type Field
For AR Receipts, this can be processed using
Enter AR Receipts
Receipt Transactions
Receipt Transactions are all types of deposits in batch format
AR Setup FY18 6/20/18 Workshop Page 22
Enter required fields
Click New to enter more items
Check the Errors/Warning field for missing Data
Save/Close
Go to Task to Post Receipt Batch Data
AR Setup FY18 6/20/18 Workshop Page 23
Status changed to Completed
Batch Id will need to be submitted in Receipts
Submit Receipts Transactions in Receipts Go to Finance – AR – Receipts
Search for Status: Open
OR Transaction Batch Id
Go to Task to Submit for Deposit
Once Receipts are approved, After July 2, 2018, send to SCOE as usual
AR Setup FY18 6/20/18 Workshop Page 24
AFTER Close of FY18
Example #4: When an AR was set up and not received against
“Manually Complete”
Go to Finance – AR – Invoices
Search Criteria:
● Enter the invoice number you wish to edit
● Clear Fiscal Year field
● Click Go
● Do not make changes to Item or Accounts Tab
● From the Tasks menu, select “Manually Complete”
This will create a journal in FY19 that will credit the 9210 and debit the 8XXX revenue
This will affect FY18 for the amount that was not received
Example #5: For a receivable that was partially received against but will
not be totally cleared
Go to Finance – AR – Invoices Search Criteria:
● Enter the invoice number you wish to edit
● Fiscal Year: Blank out
● Click Go
● Do not make changes to Item or Accounts Tab
● From the Tasks menu, select “Manually Complete”
This will force a journal in FY19 that will credit the remaining 9210 balance and debit the
8XXX revenue for the difference between what was set up and what was not received.
This will affect FY18 for the amount that was not received