accounts receivables accruals - scoe · linked account that were set up for the new fiscal year. in...

Accounts

Receivables

Accruals

For FY14

June 18, 2014

Information Technology

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References:

14.02 Release: Finance – Processes – Year End Closing – Chapter 5 AR Invoices (see pages 5-19 to 5-24) Home Page –Help from the top Tool bar - Finance - Year End Reference (see pages 5-19 to 5-24)

Home Page – Workshops - Year End Closing Manual – Steps 1, 10 and 11

1. Understanding the Process

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

It is important to post(deposit) all current year receipts in FY14 before you begin o Invoice amounts will default as accrual dollar amounts for year end processing o Should prevent potential data entry errors

If a payment has not been posted in FY14, a necessary receivable may not be accrued

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 the negative amount in 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 FY14 journal entries which establish AR’s (debits object 9229) and records revenue (credits objects 8xxx) in 2013-14. Escape does not have a way to set up receivables without an invoice first being created.

Any deposits to AR’s(AR14-XXXXX) must be done in FY15 and reference the FY14 accrual invoice

o To become an AR in FY15 the invoice must have gone through the year end process

The use of 9290/9590 objects is now required for any accruals associated with state or federal programs. These entries will need to be manually done via a journal as the normal Year End Processing activity does not allow the use of objects other than 9210/9510.

Reminder: The Asset/Liability roll, which takes place after 2013-14 is closed, will move these receivables from object 9229 in FY14 to object 9210 in FY15. Until the Asset/Liability roll is performed, there will not be a balance in the FY15 9210 object to offset the receipts being made to the FY14 receivables.

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2. Review Potential AR’s

Run the Fiscal Year End Checklist (Fiscal15) -Provides a list of all items needing to be addressed prior to close

Finance - Reports - Fiscal - Fiscal15

1. Click on FY2014

2. Can search by Department

3. Reqs/Payments line default to No

4. Click Go

5. Review checklist for any outstanding receipts

If you try to process invoices that have outstanding receipts, you will receive an error

If it is after the last cash deposit date (6/25/14), you will need to cancel those receipts, process the invoices on the Year End Closing AR List (see instructions below), and then re-enter your receipts

6. This report must be totally clean before you are ready to close the year

Rerun the report to verify that there are no remaining entries

7. See Step 1 of the Year End Closing Manual dated 05/28/14 for additional information concerning the use of this report

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Move to the Year End Closing screen

Provides a list specific to ARs

Pprovides the screens to set up AR accruals

Finance - Processes - Year End Closing

1. Enter search criteria:

Fiscal Year (2014)

Department

Order Location

Document Type (Select AR Invoice)

Reference Number

Process Default = No

Vendor Name

Accounts

2. Click Go 3. Review the list as shown on the next page as an example

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Report options: a. From Task select Year End Processing Report

- Reports all detail for remaining option on the Process List b. From the tool bar select the “magnifying Glass” icon

- Reports all the detail for the highlighted entry on the Process list

4. Determine to accrual, carry over or release of all items.

Setting Up an Accrual for Next Year – This will change the invoice’s fiscal year to the next fiscal year, add the appropriate accounts and write a history record

Enter the amount in the Accrual field (Defaults entire amount)

Prior Year Receivables can be accrued i. Watch accrual amounts if prior year

Escape Online will automatically set the process flag to Yes

Carrying Over the Invoice to Next Year – This will not write any journal entries

It will simply add the next year’s accounts and write a history record

Enter the amount in the Carryover field


Releasing (Close Out) the Invoice – Sometimes it is better to just close out the invoice. Escape will reverse the receivable

No payments will be reversed

Enter zero in both the accrual and carryover amounts

Escape Online will enter the remaining balance into the release amount


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5. Post Changes from the task bar menu

Select Post from the Task menu to process all Account Receivables flagged Yes in Process column

o Be sure you agree with the posting count

Note in our example post below three were defaulted as shown in the posting box

Note that one of the invoices we had hoped to process failed upon posting o If you move your cursor over the Message field you will see that the AR14-00016

invoice could not be process because there were outstanding receipts

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3. Fixing A/R Invoice Errors

Sometimes mistakes are made, data entry errors with the dollar amounts, invoices received but not entered, etc. If you have NOT closed the books for the year and discover a data entry mistake in a year-end receivable that was set up, then you should use the Receivable field in the Invoice record.

See AR Scenario’s for additional examples of typical issues and methods for correction (pages 13-19 of this manual).

Finance – AR - Invoices

1. Open the invoice that needs to be changed (be sure to enter 2015 in the fiscal year)

Once you have posted from the year end process screen, the invoice is now in FY15

1. Go to the Items tab and adjust the item amounts as necessary.

2. Go to the Accounts tab

Enter or adjust the receivable amount in the Receivable field of the prior year revenue account

When the revenue account column is locked, clearly fiscal year 2014 is closed

Adjust Receivable amount in Receivable field

If there is a difference that appears in the FY15 Amount you will need to adjust it to zero

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4. Save and Close the invoice

Escape Online will make the appropriate changes to the revenue account and linked account that were set up for the new fiscal year. In other words, it will unlock the revenue, allowing you to resolve the problem.

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 Online will create a journal entry that adjusts the revenue for the prior fiscal year.

4. Clearing Journal Entries

Finance – Fiscal – Journal Entries

Post or delete all journal entries that have not been posted or cancelled

1. 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

2. Take the appropriate action (have posted or deleted)

3. Re-run search to verify there are no outstanding journal entries

Search Status Open, then Status Submitted,

then Status Audit

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5. Clearing Budget Transfers

Finance – Fiscal – Budget Transfers

Post or delete all budget transfers that have not been posted or cancelled

1. Search for Budget Transfers in the Open, Submitted or Audit status

• The order of the search is important

i. As you move/address an open item it could move to the status of Submitted or Audit and be missed during other status searches

2. Take the appropriate action (have posted or deleted)

3. Re-run search to verify there are no outstanding budget transfers

Search Status Open, then Status

Submitted, then Status Audit

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6. Review of Additional AR Information Three methods to review Receivable (AR) setup, activity and journal information:

1. Finance – Fiscal – Journal Entry

-Enter the AR14-xxxxxx that you are interested in

-Zero out the Fiscal Year field so you will get a list of all journals to the AR

-Select Go

-All journals associated with that AR will be listed in order of entry

-Open and review the adjustment entry

2. Finance – AR – Invoice

- Enter and open the AR14-XXXXXX you are interested in

- Blank out the Fiscal Year

--Select the History Tab from the opened 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 FY14 and 9210 in FY15 for all AR’s in the G/L for balancing

3. Finance – Reports – Ledger

-Ledger 02a- Receivables/Liabilities Activity

-Closing year - Enter the fiscal year for which the receivables were setup

-A/R or A/P - Use the lookup to limit the report to receivables

-Invoice number – Specify Invoice # to see only transactions for that invoice

-Cleared items - Change Cleared items to YES to provide a listing of everything that has been setup

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-Unposted JE – Change to NO to not include journals that are not posted on the report.

-See report criteria shown below

-This report shows journal entry activity by requisition number, account receivable invoice number or journal entry number as it relates to account receivable and/or liability setup and clearing.

-This report page breaks on account type.

-If account selection is specified, only those accrual journal entries that have expense/revenue detail matching the selection criteria will be included in the report.

-The offset objects the report uses are defined in the Ledger tab of the Organization record. Each fiscal year must be set to a different object code. For example, the current year is set to 9229 and the prior year is set to 9210.

-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.

-The journal entries made to 9290/9590 will not be present on the report.

-The description comes from the AR Invoice/Vendor Req comment. If the comment is blank, the report will use the comment from the latest JE that is found for this reference number.

-If the offset account is expired, an asterisk will show next to the amount.

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8. Entering AR Receipts (Invoices that have been processed through

Year End Closing) Finance – AR – Enter AR Receipts

Enter Fiscal Year 2015 (After 6/25/14 this will always be 2015)

Enter the current date

Pull in the County Bank Account

Enter the invoice number for Receipt #1 (AR’s will always start with AR14)

Enter the Amount Received

Enter the Reference #

Enter a Comment

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Receivable (AR) – Cheat Sheet

A. To SET UP a year end receivable from EXISTING invoices during FY14

1. Go to Finance - Processes - Year End Closing

Source criteria-

-Select Department from the drop down menu

-Select Document Type from the drop down menu, and choose AR Invoice

-Select Go

From the list alter the Accrual and/or Carryover column amounts to be as you need by clicking on the fields and entering the data

***The Escape system assumes that since you have printed an invoice that the work has been done so the natural default is the Accrual column***

Make sure that the Process column shows Yes

2. Select Task from the menu bar at the top of the screen

3. Select Post from the drop down menu

The screen should give a count of the ones ready for processing

Select Yes if you agree with the count to continue the post

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If any of the postings fail you will see a message bar and it will indicate why the post

failed when you hover over the message with your mouse

4. If you receive an error message on an item follow through on the error message and then repeat the process above after the error has been corrected

B. To SET UP a year end receivable WITHOUT FY14 invoice having already been set up

***The Escape system does not have a way to set up receivables without an invoice first being created. It takes the ‘Requisition Year End Closing’ process to move the receivable accounts to the next year so FY14 receipts can be made in FY15.

1. Go to Finance - AR - Invoice

Note: Before beginning this process you will need to add a customer if the one you need is not already in the system (Finance-AR-Customers)

2. Select New (Process to create an FY14 invoice)

-Select 2013/2014 from the drop down

-Fill in all the criteria required for the Invoice, Items and Accounts tabs

-Select save/close

3. Select Print Invoices

-Enter your Department from the drop down menu

-Status option should be Open

-Select Go (Note the list will provide you with an AR14-xxxxx invoice)

4. From the List screen select the Task menu item

5. Select Print Invoices

***You do not have to actually print them 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 that will show on the AR Year End Closing screen

6. Return to the steps under A. To set up a year end receivable from existing invoices during FY14 on page 13 and complete the accrual process as you now have an existing invoice.

C. To ALTER an already set up receivable done through the ‘AR Year End Closing’ screen

1. Go to Finance - AR - Invoice

Source criteria-

Enter the Receivable number you wish to alter (AR14-xxxxx)

Clear the Fiscal Year field with the space bar or select the year 2015

Select Go

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2. Go to the Items tab and adjust the item amounts as necessary.

3. From the Accounts tab enter or adjust the receivable amount in the Receivable field of the prior year revenue account.

Note the FY field shows 2014

When the revenue account column is locked, clearly fiscal year 2014 is closed

If there is a difference that appears in the FY15 Amount you will need to adjust it to zero

4. Return to the Invoice tab and verify that the Undistributed Amount is now zero and the Receivable Amount is what you wanted to change it to.

The amount in our example shows Receivable amount as $500.00 and the Undistributed amount shows as $250.00.

We need to add a -250.00 to the Adjustment line to balance this invoice and have the AR accrual for the amount of $250.00

5. Select Save/Close (until the red X is cleared the Save/Close will not be available) ****At this point a system created journal is created to reverse the first accrual and process the second accrual*****

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D. Receivable (AR) Scenario’s

***Pre-Close***

1. When an AR was set up and should not have been Finance – AR - Invoices

a. Blank out the Fiscal Year field on search screen

b. Enter and open the AR needing alteration (Do Not Reopen the AR from the Task menu)

c. From the Accounts tab enter zero as the receivable amount in the Receivable field of the prior year revenue account

d. If the 2015 revenue amount line shows dollars be sure to enter zero as the amount here.

e. This will automatically alter the 9210 receivable on the screen

f. Verify that all the fields show zero

g. Return to the Invoice tab and enter an Adjustment Amount to clear the Undistributed Amount and Amount Outstanding.

h. Then select “Manually Complete” from the Task menu

i. Select Save/Close and a FY14 journal will be created that will alter the FY14 setup to zero

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2. When an AR was set up for the incorrect amount Finance – AR - Invoices

a. Blank out the Fiscal Year field on the search screen

b. Enter and open the AR needing adjustment (Do Not Reopen the AR from the Task menu)

c. Change the amount on the Items tab.

d. From the Accounts tab enter or adjust the receivable amount in the Receivable field of the prior year revenue account.

e. This will automatically alter the 9210 receivable on the screen

f. Verify that all the fields reflect the changes you want to make

g. Return to the Invoice tab and verify that the Undistributed Amount is now zero and the Receivable Amount is what you wanted to change it to.

h. Save/Close and a journal will be created that will alter the FY14 set up and leave the FY15 at the new amount you requested.

3. When an AR was set up to the incorrect resource/account code

The accounts on a FY14 AR line cannot be altered. The AR must be manually completed.


a. Blank out the Fiscal Year field on the search screen

b. Open the AR needing adjustment (Do Not Reopen the AR from the Task menu)

c. From the Accounts tab adjust the receivable amount in the Receivable field of the prior year revenue account to zero.

d. Adjust the 2015 revenue account to zero.

e. The 9210 receivable will automatically zero out on the screen when the first two lines are changed to zero

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f. 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. Input this amount as a negative amount to zero it out

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g. Then select “Manually Complete” from the Task menu

A FY14 journal will be created that will reverse the original accrual to the 9229 accounts and allow you to set up a new accrual to the correct resource/account code

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***Post Close***

1. When an AR was setup and not received against (Manually Complete)


a. Blank out the Fiscal Year field on search screen or select 2015

b. Enter and open the AR needing to be closed (Do Not Reopen the AR from the Task menu)

c. Make no changes to the Accounts tab

d. From the Task menu, select “Manually Complete”

e. This will force a journal in FY15 that will relieve the 9210 and debit the 8XXX side

f. This will affect FY15 for the amount that was not received

2. For a receivable that was partially received against but will not be totally cleared


a. Blank out the Fiscal Year field on search screen or select 2015

b. Enter and Open the AR needing to be closed (Do Not Reopen the AR from the Task menu)

c. Make no changes to the Accounts tab

d. From the Task menu, select “Manually Complete”

e. This will force a journal in FY15 that will relieve the remaining 9210 balance and debit the 8XXX side for the difference between what was set up and what was received

f. This will affect FY15 for the amount that was not received