INTRO120: Billing and Accounts Receivable Overview Web Based Training Revised 2/21/2013
Welcome Welcome to Cardinal Training! This training provides employees with the skills and information necessary to use Cardinal. It is not intended to replace existing Commonwealth and/or agency policies. In this course, we will show you an overview of the Accounts Receivable functional area. These training materials include diagrams, charts, screenshots, etc., that clarify various Cardinal tasks and processes. The screenshots are taken from Cardinal and show pages that not all users can access. They are included here so you can see how your specific responsibilities relate to the overall transaction or process being discussed. See your agency Security Handbook for a list of all available roles and descriptions. 2
Course Navigation 3
Course Objectives After completing this course, you will be able to: Define key Billing and Accounts Receivable concepts Explain how Billing and Accounts Receivable fit into Cardinal Describe how Billing and Accounts Receivable integrate with other modules in Cardinal 4
Lesson 1: Introduction to Accounts Receivable In this lesson, you will learn about the following topics: Billing and Accounts Receivable Modules Key Concepts 5
Billing and Accounts Receivable Modules The Accounts Receivable functional area of Cardinal is composed of two modules: Accounts Receivable The Accounts Receivable module automates item processing to ensure timely and accurate payment for goods and services. Billing The Billing module includes creating invoices, reviewing and validating invoices, and managing billing and distribution cycles. In addition, the Setup and Maintain Customers process stores customer and contact information for use in Billing, Accounts Receivable, and other modules. Click on image to enlarge 6
Key Concepts Some key concepts in Billing, Customers, and Accounts Receivable include: Billing and Accounts Receivable are separate processes. You can create and review pro forma invoices prior to generating invoices. This helps avoid errors in final invoices. You can create worksheets that match payments to open items automatically, based on rules using the Payment Predictor. You can produce multiple copies of billing notices (e.g., for auto insurance companies) using the Courtesy Copy feature of Billing. You can use the Invoice Register to see the number of invoices created. You can track refunds and create credits for customer accounts. 7
Key Concepts (continued) You can electronically record messages, conversations, and actions in lieu of paper correspondence. You can manually create worksheets when a partial payment or an overpayment is received. You can issue refunds for overpayments. You can calculate accident charges using standard costing. You can electronically submit collection information to the Department of Taxation. You can interface deposit information through the General Ledger functional area to the Commonwealth Accounting and Reporting System (CARS). 8
Lesson 1: Summary In this lesson, you learned: The Accounts Receivable functional area of Cardinal is composed of two modules: the Accounts Receivable module and the Billing module. The Billing and Accounts Receivable modules have several automated processes. Bills are created and adjusted in the Billing module. Items are processed in the Accounts Receivable module. 9
Lesson 2: Accounts Receivable Processes In this lesson, you will learn about the following topics: Accounts Receivable Functional Area Setup and Maintain Customers Process Billing Process Accounts Receivable Process 10
Accounts Receivable Functional Area The Accounts Receivable functional area determines how funds are obtained and applied. Key processes in the Accounts Receivable functional area are: Setup and Maintain Customers (entering and maintaining customer, related billing, and miscellaneous information) Generate Bills and Create Receivables (entering billing information, creating billing invoices, and creating and posting Accounts Receivable items) Maintain Receivables (maintaining accurate receivable balances using various tools which include refunds, write-offs, debit/credit memos, non-sufficient funds, and transferring receivable amounts) 11
Accounts Receivable Functional Area (continued) Collections and Aging (obtaining payment for receivables and grouping them into categories, such as current, one to thirty days past due, and thirty-one to sixty days past due) Enter Funds Receipts and Apply Payments (applying payments to one or more items and handling partial payments and overpayments) 12
Setup and Maintain Customers Process The Setup and Maintain Customers process involves manually entering and updating customer information, billing information, and contact information. Once customers are created, they are available for use in the Billing and Accounts Receivable modules. Click on image to enlarge 13
Setup and Maintain Customers Process (continued) The Setup and Maintain Customers process involves several key steps: Receive Customer Information You may receive an email or a form to setup a customer. The request could come from an external source, for instance a State Police accident report. The request could also come from another functional area, for instance from Project Accounting whereby another agency is being billed for portion of costs on a project. Enter General Information You can enter general information for a new customer or update general information on an existing customer. General Information includes Name, Customer Status, Customer Type, Address Locations, Support Teams, Currency Codes, and federal attributes such as Federal Customer. If the Customer is inactivated, new bills cannot be generated, new Customer Correspondence cannot be entered, and new Payments cannot be applied. However, items entered before inactivation continue to exist. Enter Billing Information Billing options include Direct Invoicing, Bill Type, Bill By Identifier, and AR Distribution Codes. Additional billing information entered may include Payment Terms, Payment Options, Payment Methods, and the assignment of a Billing Specialist, Credit Analyst, and/or Collector. Customer Ship To options and Sold To options are also included in the customer setup. Enter Customer Contact Information Customer contact phone and address information can be entered and updated 14
Customers Menu Option The Customers menu option allows access to the major functions in the Setup and Maintain Customers process. You can navigate to this page using the following path: Main Menu > Customers Click on image to enlarge 15
General Information for Customers The General Information page and its components store all the information needed for customers and allows you to manage customers according to your needs. The information can contain names, addresses, contact information, payment terms and other billing information, etc. You are responsible for verifying this information before adding a new customer. You can navigate to the General Information page using the following path: Main Menu > Customers > Customer Information > General Information Click on image to enlarge 16
Billing Process The key Billing process is Generate Bills and Create Receivables, which involves entering bill information, creating invoices, reviewing and validating invoices, managing billing cycles, creating receivables, posting receivables, and creating billing invoice adjustments. Click on image to enlarge 17
Billing Process (continued) The key steps involved in the Billing process are: Create Online Bills Enter billing information online. You can create recurring bills, installment bills, and consolidated bills. Create Invoices An invoice is a bill that has gone through the Finalize and Print process and is ready to go out to a customer. Invoices are created for billable transactions from external source systems or bills entered online. Invoices can be created as PDFs. A sub-process loads billing entries into General Ledger, performs budget checking, and creates Accounts Receivable pending items. Adjust Bills Create adjustment bills online which adjust an entire bill or a portion of a bill. Thereafter, the customer is re-billed. Post Receivables Post pending items generated from Billing and create Accounts Receivable items. 18
Billing Menu Option The Billing menu option allows access to the major functions in Billing. You can navigate to this page using the following path: Main Menu > Billing Click on image to enlarge 19
Bill Types Standard Bill Entering bills online refers to the creation of standard bills, recurring bills, installment bills, and consolidated bills. The basic type of bill in Cardinal is a standard bill (also called a regular bill). You can navigate to the Standard Billing page using the following path: Main Menu > Billing > Maintain Bills > Standard Billing Click on image to enlarge 20
Accounts Receivable Process The Accounts Receivable process involves several key steps: Maintain Receivables To update receivable balances, you can use tools such as receivable adjustment (including refunds) write-offs, non sufficient funds, and transferring receivable amounts. Billing adjustments are handled by the Generate Bills process. Collections and Aging These processes allow you to identify and analyze aged receivables in order to initiate the appropriate collection procedures. Enter Funds Receipts and Apply Payments These processes allow you to create deposits and apply payments to Accounts Receivable and direct journaled entries sent to the General Ledger. Click on image to enlarge 21
Accounts Receivable Menu Option The Accounts Receivable menu option allows access to the major functions in Accounts Receivable. You can navigate to this page using the following path: Main Menu > Accounts Receivable Click on image to enlarge 22
Maintenance Worksheet You can 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. Maintenance items can be credit or debit memos, invoices, adjustments, on-account payments, or prepayments. Maintenance worksheets enable you to offset debits and credits. The Worksheet Application or Worksheet Group View page allows you to select items to match, create write-off and adjustment items, or create refund items Write-offs and Refunds are done using the same worksheet. Transfers require a different worksheet template. 23
Maintenance Worksheet (continued) You can navigate to the Create Worksheet page using the following path: Main Menu > Accounts Receivable > Receivables Maintenance > Maintenance Worksheet > Create Worksheet Click on image to enlarge 24
Aging The Aging process runs nightly. It automatically processes all items and categorizes them by date. The Aging process updates summary aging information that appears on various inquiry pages. Management and collection departments rely on aging to identify delinquent accounts and take appropriate action. 25
Aging (continued) There are several aging reports that show the history and category of the item. For example, you can use the Aging Summary by Unit report to see aged open balances for every customer in a business unit. You can navigate to this page using the following path: Main Menu > Accounts Receivable > Receivables Analysis > Aging > Aging Summary by Unit Rpt Click on image to enlarge 26
Deposits and Payments Payments may or may not correspond to an open AR item. If the payment corresponds to an AR item, the Payment Predictor batch process will select that data to create and save a worksheet. If the payment corresponds to a non AR item, it will be recorded as a Direct Journal. You can enter identifying information for payments related to receivable items. This identifying information, such as an Item ID or Customer ID, is entered to aid application of payments that reduce the receivable balances. 27
Deposits and Payments (continued) Deposits and payments posted to the Accounts Receivable module are posted to the invoices created in the Billing module. You can navigate to this page using the following path: Main Menu > Accounts Receivable > Payments > Online Payments > Regular Deposit Click on image to enlarge 28
Lesson 2: Checkpoint Now is your opportunity to check your understanding of the course material. Read the question, select your answer and click Submit to see if you chose the correct response. 29
PROPERTIES On passing, 'Finish' button: On failing, 'Finish' button: Allow user to leave quiz: User may view slides after quiz: Goes to Next Slide Goes to Next Slide At any time At any time 30
PROPERTIES On passing, 'Finish' button: On failing, 'Finish' button: Allow user to leave quiz: User may view slides after quiz: Goes to Next Slide Goes to Next Slide At any time At any time 31
Lesson 2: Summary In this lesson, you learned: Setup and Maintain Customers Generate Bills and Create Receivables Maintain Receivables Collections and Aging Enter Funds Receipts and Apply Payments 32
Lesson 3: Billing and Accounts Receivable Integration and Interfaces In this lesson, you will learn about the following topics. Integration with General Ledger Integration with Project Accounting Interfaces 33
Integration with General Ledger The General Ledger is the heart of the financial recording system. General Ledger is a collection of financial accounts that enables us to determine our financial position. The Journal Generator takes accounting entries from Cardinal sub-modules and formats them to create journal entries. Accounts Receivable sends accounting entries to the General Ledger through the Journal Generator process. Transaction data is sent to the General Ledger when posted in Accounts Receivable. Click on image to enlarge 34
Integration with Project Accounting The Project Accounting Customer Contracts module sends project billing data to the Billing module in the Accounts Receivable functional area. The Billing module creates the related invoices and accounting entries. The Billing Worksheet is used to review and approve the project billing data. Once the invoices are final, related billing data is available for upload to the Customer Contracts and Project Costing modules. Adjustments made to billing or receivables create entries that update project information in the Project Costing module. Click on image to enlarge 35
Interfaces Accounts Receivable also interfaces with other systems outside of Cardinal Department of Taxation: Accounts Receivable sends and receives collection data to and from the Department of Taxation during the Collections and Aging process. Accounts Receivable receives payment data from the Department of Taxation in the Enter Funds Receipts and Apply Payments process. These interfaces allow us to collect pastdue receivables from any payments another state agency might make to the customer. Federal Highway Administration (FHWA): Cardinal Accounts Receivable also sends Project Billing Data to FHWA on a daily basis. Click on image to enlarge 36
Lesson 3: Checkpoint Now is your opportunity to check your understanding of the course material. Read the question, select your answer and click Submit to see if you chose the correct response. 37
PROPERTIES On passing, 'Finish' button: On failing, 'Finish' button: Allow user to leave quiz: User may view slides after quiz: Goes to Next Slide Goes to Next Slide At any time At any time 38
Lesson 3: Summary In this lesson, you learned: The Accounts Receivable functional area integrates with two other functional areas in Cardinal: General Ledger and Project Costing. The Accounts Receivable functional area interfaces with two other major systems: Department of Taxation and the Federal Highway Administration. 39
Course Summary In this course, you learned to: The Accounts Receivable functional area includes two modules: Accounts Receivable and Billing. The Accounts Receivable functional area includes: Setup and Maintain Customers, Generate Bills and Create Receivables, Maintain Receivables, Collections and Aging, and Enter Funds Receipts and Apply Payments. The Accounts Receivable process includes Maintain Receivables, Collections and Aging, and Enter Funds Receipts and Apply Payments. The Customers process includes Receive Customer Information, Enter General Information, Enter Billing Information, and Enter Customer Contact Information/Address. The Billing process includes Create Online Bills, Create Invoices, Adjust Bills, and Post Receivables. The Accounts Receivable functional area integrates with two other functional areas in Cardinal: General Ledger and Project Costing. The Accounts Receivable functional area interfaces with two other major systems: Department of Taxation and the Federal Highway Administration. 40
Course Evaluation Congratulations! You have successfully completed the INTRO120: Billing and Accounts Receivable Overview course. Please use the evaluation link to assess this course. Click here to access the survey Once you have completed and submitted the survey, close the survey window. To close the web based training course, click the Exit Course button. 41
Appendices Key Terms Diagrams and Screenshots 42
Key Terms Action Code: An attribute attached to an item that identifies the action that needs to be performed when a specific condition exists. In Cardinal, action codes are used to track the collection status of individual items. Aging Process: Calculates the age of outstanding customer accounts receivable balances. Management and collection department rely on aging reports to identify delinquent accounts and take appropriate action. Bill Statements: Invoice: Bill issued by an agency for their participation in project costs or for amounts due to the agency for goods or services. Customer Statements: Documentation of customer activity including billing, payments and balances. Dunning Letters: Notification to customers that their account balances are past due and payment is required. Bill Statuses: Stages of a bill, from creation to invoice NEW: Initial status for a created bill RDY: Bill that is ready to be picked up in the Finalize and Print batch process INV: Bill that has gone though the Finalize and Print process and is ready to go out to a customer PND: Bill that you adjusted but has not yet been reviewed and approved 43
Key Terms (continued) Budget Check: Budget Checking is the process of comparing transaction to budget ledgers to ensure that amounts do not exceed the controlling budget. Transaction may pass, fail or pass with a warning. The budget check process is run via a batch process. Typically, once a Valid budget check status is achieved, the budget balances are updated. Charge Code: The code that indicates the goods, services, or fees for which the agency bills a customer. Customer: A customer is an entity responsible for paying the agency. In Cardinal, there are four general customer types available for product or service: Government (Federal, City, County, or Town), Business, Individual, or State Agency. Deposits: Payments received from customers that are being processed. A payment can be applied to multiple items for a single customer or to multiple items from different customers. Dunning: Dunning is a daily batch process that creates customer notification of past due balances. 44
Key Terms (continued) Installment Billing: Used to invoice customer in segments, with the total amount due divided equally. Open Items: Amounts billed to a customer but not paid. Also known as pending items. Pending Items: Receivable items that have not yet been posted to an account in Cardinal. Pro Forma: Preview of a Billing Invoice, allowing you to print and view invoices before you finalize the bill. Receivables: Amounts owed to the Department from individuals or other entities (including state, federal and local governments, individuals or businesses). Recurring Billing: A type of bill that occurs on a set schedule that allows for the reproduction of bills, or portions of bills, and the generation of invoices by using templates. Run Control: An identifier that, when paired with your User ID, uniquely identifies the process you are running. The Run Control ID defines parameters that are used when a process is run. This ensures that when a process runs in the background, the system does not prompt you for additional values. 45
Billing and Accounts Receivable Modules Click on image to return 46
Setup and Maintain Customers Process Click on image to return 47
Customers Menu Option Click on image to return 48
General Information Page Click on image to return 49
Billing Process Click on image to return 50
Billing Menu Option Click on image to return 51
Standard Billing Page Click on image to return 52
Accounts Receivable Process Click on image to return 53
Accounts Receivable Menu Option Click on image to return 54
Create Worksheet Page Click on image to return 55
Aging Summary By Unit Click on image to return 56
Regular Deposit Click on image to return 57
Integration with General Ledger Click on image to return 58
Integration with Project Accounting Click on image to return 59
Interfaces Click on image to return 60