Once your organization has decided to configure Accounts Receivable to process the third party as a subsidiary account, it should not change the software's configuration back to the previous settings.
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Once your organization has decided to configure Accounts Receivable to process the third party as a subsidiary account, it should not change the software's configuration back to the previous settings. |
With the enhanced method, you may choose between:
· Manual transfer. The manual transfer method is more flexible and gives you greater control over the transfer. The manual transfer method also allows you to track third party payments using an invoicing system. The manual transfer method allows you to track third party payments with an invoice number. The third party's charges are in a separate subsidiary account so that the student's subsidiary account is credited and the charges are put on the third party's subsidiary account. An invoice number is created by transferring charge transactions from a students subsidiary account to a third party's subsidiary account. The invoice number will appear on the statement and may be used to track the third party's payments. The manual transfer is done on the Transfer Third Party Subsidiary window. This window also has the ability to move charges back to a student's subsidiary account from the third party's subsidiary account.
· Automatic transfer. The automatic transfer method is easier to use, but you do not have as much control over the transfer. Also, the automatic transfer method does not allow you to track the transferred charges with an invoice number. The automatic transfer method allows you to generate the third party charges during the Student Charges process. To define the charges you want to be transferred, select the Apply To Third Party checkbox on the Charges Definition/Charges Detail Entry window. If the student being charged has a third party associated with them and the charge is defined to be applied to the third party, the full charge amount will be transferred to the third party. The third party's charge is in a separate subsidiary account so that the student's subsidiary account is credited and the charges are put on the third party's subsidiary account. With the automatic transfer method, no invoice number will be generated to track the transferred charges.
1. Decide which type of Enhanced Method will work best for your organization. You can transfer charges automatically, or you can transfer charges manually.
a. Automatic transfer: Transferring charges automatically provides an easy way to move charges from the student subsidiary account to the third party subsidiary account. You cannot automatically transfer charges from the third party subsidiary account back to the student subsidiary account; instead, you must create new transactions. The automatic type of transfer should be used if the third party always pays the full amount of the charge.
b. Manual transfer: Transferring charges manually allows you to utilize an invoicing system and gives you greater control over how much of each charge is transferred to the third party subsidiary account. When you manually transfer student charges from the student subsidiary account to the third party subsidiary account, an invoice number is attached to the transferred charge transactions. The invoice number may be used to track the transferred charge transactions and to track third party payments. Using the manual type of transfer also allows you to transfer charges from the third party subsidiary account back to the student subsidiary account without having to create new transactions.
2. Configure Accounts Receivable. Use the A/R Configuration window. By selecting the Process Third Party As Subsidiary checkbox only, you are configuring Accounts Receivable to use the manual transfer method. By selecting the Process Third Party As Subsidiary checkbox AND the Auto Generate Third Party Charges checkbox, you are configuring Accounts Receivable to use the automatic transfer method. It is important to remember that this step determines the direction of all following steps, so be sure that you have selected the correct checkbox(es).
3. If you have configured Accounts Receivable to automatically transfer charges to the third party subsidiary account, you need to define which charges will be eligible to be transferred to the third party subsidiary account during the Student Charges process. You can define the charge on the Charges Definition/Charges Detail Entry window. Select the Apply To Third Party checkbox to make the charge eligible to be transferred to the third party subsidiary account. The entire amount of the charge will be transferred to the third party during the Student Charges process.
4. If you have configured Accounts Receivable to manually transfer charges to the third party subsidiary account, you do not need to define which charges will be eligible to be transferred to the third party subsidiary account. After the Student Charges process has been run, you may transfer student charges from the student subsidiary account to the third party subsidiary account using the Transfer Third Party Subsidiary window.
5. When the charges have been transferred, you can run Statements. The Student Account Statements window allows you to run the Statements process. You can print both the student statements as well as the third party statements using the Student Account Statements window.