A/R Cycle for Students

A student typically enters the system in the Admissions Office. During the recruitment process, the Admissions Office gathers personal information and the Financial Aid Office might begin packaging awards and loans to entice the student to enroll. When the student enrolls, the Registrar registers them for courses and the Business Office creates a Subsidiary Master row. The students registration triggers the automatic generation of charges for tuition and fees. Various methods can be used to created transactions and run statements.

The following example details the process a student might go through in the Accounts Receivable system. Most of the tasks outlined are simply different ways to create charges and credits to the subsidiary accounts.

ID/Name:  000000001 Tom Wise

Subsidiary:  AC Accounts Receivable

Date

Transaction Description

Charge

Credit

Balance

09/01/94

Tuition - Full time

2,450.00

 

2,450.00

09/01/94

Room and Board - Fall

1,200.00

 

3,650.00

 

 

 

 

 

At various times in the term, the Financial Aid Office might release awards to student accounts. The illustration below shows that Tom Wise was awarded a $1,000 institutional scholarship. When the Financial Aid Office releases its institutional scholarships to student accounts, Tom receives a credit to his subsidiary account.

ID/Name:  000000001 Tom Wise

Subsidiary:  AC Accounts Receivable

Date

Transaction Description

Charge

Credit

Balance

09/01/94

Tuition - Full time

2,450.00

 

2,450.00

09/01/94

Room and Board - Fall

1,200.00

 

3,650.00

09/03/94

Institutional Scholarship

 

1,000.00

2,650.00

 

 

 

 

 

When an application for a parking permit is received, the Security Department charges $75 to Toms account. A journal entry is created that charges Toms subsidiary account and credits the Parking Permit Income account. Toms subsidiary account reflects the new charge.

ID/Name:  000000001 Tom Wise

Subsidiary:  AC Accounts Receivable

Date

Transaction Description

Charge

Credit

Balance

09/01/94

Tuition - Full time

2,450.00

 

2,450.00

09/01/94

Room and Board - Fall

1,200.00

 

3,650.00

09/03/94

Institutional Scholarship

 

1,000.00

2,650.00

09/05/94

Parking Permit Fee

75.00

 

2,725.00

 

 

 

 

 

When a $1,100 payment is made on this account, the Receipt Entry window accepts payment.

ID/Name:  000000001 Tom Wise

Subsidiary:  AC Accounts Receivable

Date

Transaction Description

Charge

Credit

Balance

09/01/94

Tuition - Full time

2,450.00

 

2,450.00

09/01/94

Room and Board - Fall

1,200.00

 

3,650.00

09/03/94

Institutional Scholarship

 

1,000.00

2,650.00

09/05/94

Parking Permit Fee

75.00

 

2,725.00

09/05/94

Payment - Thank you

 

1,100.00

1,625.00

 

 

 

 

 

At the end of the month, statements are created for each student.

Student Name

0 30 Days

31-60 Days

61-90 Days

91-120 Days

121-190 Days

Over 190 Days

Tom Wise

1,625.00

.00

.00

.00

.00

.00

 

 

 

 

 

 

 

During the next month there is no activity on Toms subsidiary account, and it is time to run statements again. However, since Toms balance is now overdue, a finance charge must be created.

ID/Name:  000000001 Tom Wise

Subsidiary:  AC Accounts Receivable

Date

Transaction Description

Charge

Credit

Balance

09/01/94

Tuition - Full time

2,450.00

 

2,450.00

09/01/94

Room and Board - Fall

1,200.00

 

3,650.00

09/03/94

Institutional Scholarship

 

1,000.00

2,650.00

09/05/94

Parking Permit Fee

75.00

 

2,725.00

09/05/94

Payment - Thank you

 

1,100.00

1,625.00

11/01/94

Finance charge

16.25

 

1,641.25