Chapter 3

Finance Accounts Receivable Procedures

Finance Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-3

Setting up Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-3Establish Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-3

3 Finance Accounts Receivable Procedures Establish Installment Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4Enter/Update/Review Account Detail . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4Mass Entry of Charges/Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5Display/Reprint Receipt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5Review Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5Collect Miscellaneous Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5Review Cashiering Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5Adjust Cashiering Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-6Automatic Cashier Close and Session Finalize. . . . . . . . . . . . . . . . . . . . . . 3-6Process Application of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7Accounting Feed Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7Bill Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7Produce Aging Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-8Processing Holds/Releases Automatically . . . . . . . . . . . . . . . . . . . . . . . . 3-8Assign Accounts to a Collection Agency . . . . . . . . . . . . . . . . . . . . . . . . 3-8Produce Account Detail Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-8Purge Account Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9Deposit Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9Application of Payment Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-11Processing Grant Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-14Entering Free Form Account Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . 3-15Rule Code Processing in Miscellaneous Transaction Form. . . . . . . . . . . . . . . . 3-15Cashiering Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-16Accounting Feed Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-19Reconciliation Tips and Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-25Banner Accounts Receivable Interface to Banner Finance . . . . . . . . . . . . . . . . 3-27Month-End Closing Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-36Options for Returned Check Processing . . . . . . . . . . . . . . . . . . . . . . . . . 3-36Billing Purge Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-39Sample Detail Codes, Accounting Entries, and Rule Classes:

Generic Accrual Account Distributions and Seed Rule Codes . . . . . . . . . . . . . 3-40Recurring Receivables Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-40Setting Up Sleep/Wake Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-42Control/Rules/Application Forms Reference . . . . . . . . . . . . . . . . . . . . . . . 3-44

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Finance Procedures

3 Finance Accounts Receivable Procedures

This section contains the procedures used in Finance Accounts Receivable.

Setting up Accounts Receivable

The following section provides an outline of the steps involved in setting up Accounts Receivable.

Establish Controls

Before accounts are established and charges and payments entered, the following series of controls must be set up:

Finance Accounts

Receivable Procedures

1. The user IDs must be established on the User Profile Definition Form (TGAUPRF).

2. Information on how an institution plans to use the Accounts Receivable Module is set up on the Accounts Receivable Billing Control Form (TGACTRL). An institution can identify:

Whether a default rule class for miscellaneous transactions is to be established. This will be used when entering miscellaneous transactions via TFAMISC when Banner Finance is installed.

If receipts are to be printed automatically.

If restrictions are to be enforced. If the Enforce Restrictions on User Profile Form check box is selected, then the restrictive category codes may be established for each user ID on the User Profile Definition Form (TGAUPRF).

Whether cashiers are assigned to supervisors. If the Assign Cashiers to Supervisors check box is selected, then cashiers may be associated with supervisors on the User Profile Definition Form (TGAUPRF) for the supervisor.

Whether address is required when a miscellaneous transaction is created on the Miscellaneous Transaction Form (TSAMISC).

Whether to process prior-dated transactions based upon the transaction date or the system date.

Whether future effective dated transactions will be processed in the Accounting Feed. If the Feed Future Effective Transactions check box is selected, then you must specify whether the transaction date or the system date will be used when creating the accounting feed information.

The password to be used to override Accounts Receivable holds.

The invoice prefix which will prefix all system generated invoices.

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3. Customer profiles must be established on the Customer Profile Definition Form (TGACPRF).

4. For each charge and payment that is entered on an account, you must first establish detail codes on the Detail Code Control Form (TFADETC). On this form, a code is identified as a charge or payment, financial account information is entered, and any default values are established. The Accounts Receivable module will support either a cash or an accrual method of accounting.

5. Deposits are identified to the system on the Deposit Detail Control Form (TGADEPC). Deposits may be set up with default values for amount of deposit, method of payment, and release date.

6. The detail codes representing returned checks are identified to the system on the Returned Check Code Control Form (TGARETC). A penalty may be assigned to a returned check.

7. Messages that will print on a bill are set up on the Billing Message Form (TGAMESG). Messages may be general or specific to certain accounts. They may also be specific to an installment plan, delinquency code, or collection agency.

8. Installment plans are established on the Installment Plan Control Form (TFAISTL). Default information for the plan may also be established on this form.

9. The bank and account number information is established on the Bank Code Rule Form (GXRBANK).

Establish Installment Plans

The Installment Plan Form (TFAISTL) is used to create installment payment plans for an account. Installment plans may function either as loans or time payments. This form uses the installment plans previously defined on the Installment Plan Code Control Form (TFAISTC) to establish installment plans for individual accounts. Default information from the control form can be overridden.

For information about Automated installment plans, refer to Control/Rules/Application Forms Reference.

Enter/Update/Review Account Detail

The Account Detail Form (TFADETL) is used to enter information for an account. Charges, payments, deposits, and memo items may be entered on this form. The balance of the account and the current amount due are calculated and displayed on this form. Any changes to the account information will modify these balances. Comments pertaining to an account are also maintained here.

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The Foreign Currency Detail Form (TFADETF) is used to enter charges and payments to an account in a currency other than the base currency. It also displays a summarization of the total due for an invoice number which is produced in the Billing Statement Process.

The Account Detail Query Form (TFIAREV) is used to display the account detail information in a condensed format.

Mass Entry of