Student Billing Module Journal Entry Flow

Overview

In the Student Billing Module, there are many steps that affect the General Ledger by creating Journal Entries.  Please see below to review the steps that create the Journal Entries, the General Ledger impact, and where these GL Accounts are from.

Posting an Invoice

The first Journal Entry generated within Student Billing will happen when the AR Invoice Items are posted.  If AR Invoice Items are being posted to a new invoice, the invoice will be flagged as posted as well and certain fields will no longer be updatable. To review how to post an invoice navigate to these videos.

Once the Invoice/Invoice Item is posted, the Journal Entry appears on the AR Invoice record. 

Journal Entry that is created from posting an Invoice/Invoice Item. 


GL Account Origins

Revenue Account: This is populated from the Catalog Item.  (Catalog Item->Charge Item->Invoice Item)

If you think you would like to use a Deferred Revenue Account instead of a Revenue Account please contact your Account Manager to explain the additional workflow steps you might need. 

Accounts Receivable Account: This is populated with a GL Default, called AR_invoice_header_DR.

If you are interested in using different AR Accounts for different Invoice Types, that can be configured.  Navigate to the AR Invoice Type List from the System Homepage and populate the AR Account per Invoice Type. Please note that this will only affect Invoices that are created in the future, and will not update already existing records. 


Posting Payments to an AR Invoice 

The next Journal Entries generated within Student Billing will happen when invoice payments are applied to AR Invoices.   There are two different ways to post invoice payments to  AR Invoices that affect the GL Flow within the Student Billing Module.  The first way is posting through a VC Pay Payout.   To review how to post a Payout please see these videos.

Populate the default Cash Account to be used for these payments from the Payment Gateway query on the System Homepage. 

From the Cash Receipt Batch created from a Payout, on the Payout Info Tab, you will see the Expense GL Default populate based on your GL Defaults. 

GL Account Origins

Cash Account: This is populated from the Payment Gateway Cash Account. This can be populated from the Gateway Providers query on the System Homepage in Axiom. 

Accounts Receivable Account: This is populated with a GL Default, called AR_invoice_header_DR.

Expense Account: This is populated with GL Defaults, called Payout_Processing_Fee and Payout_Conveinance_Fee. These can either be different expense accounts, or the same.


The second way to process an invoice payment to an AR Invoice is by posting directly to the Invoice. These are payments made outside of Veracross such as checks, cash, and wire transfers.   To review how to post an Invoice Payment please see these videos.

Journal Entry that is created from posting an Invoice Payment. 

GL Account Origins

Cash Account: This is populated with a GL Default, called AR_Cash_Account

Accounts Receivable Account: This is populated with a GL Default, called AR_invoice_header_DR.


In the case of an overpayment when posting an Invoice payment, the cash that was not able to be applied will be placed in a holding account, becoming a Deposit Record. To review Overpayments, please watch this video.

CR: This is populated with a GL Default, called Client_Overpayment.

Deposit-Other is the GL Default for the Overpayment. 

Collecting Deposit Payments

Journal Entries will be created by collecting deposit payments and applying that cash to AR Invoices.    There are two steps when collecting and applying deposits. To review deposits, please watch this video.

Journal Entry that is created from posting a Deposit Payment. GL Account Origins

Cash Account: Online payments are populated from the Payment Gateway Cash Account. This can be populated from the Gateway Providers query on the System Homepage in Axiom. 

Liability Account: This is populated with a GL Default, called Client_Advance.

Expense Account: This is populated with GL Defaults, called Payout_Processing_Fee and Payout_Conveinance_Fee. These can either be different expense accounts, or the same.

An expense account will be hit when processing Deposits through a Payout and there are processing and/or convenience fees

Applying Deposit Payments

Journal Entries will be created by applying and posting the Deposit to AR Invoices.    To review how to process Deposits please view these videos.


Journal Entry that is created from posting a Deposit Payment to an AR Invoice. 

GL Account Origins

Liability Account:  This is populated with a GL Default, called Client_Advance.

Accounts Receivable Account: This is populated with a GL Default, called AR_invoice_header_DR.

When you Post the Application of Deposit, two clearing Journal Entry Line Items are created, debiting and crediting the Cash Account used in posting the original Deposit.  For Data Integrity, these additional entries aid in reducing the unpaid amount of the AR Invoice and the unapplied amount of the deposit, at the same time. 

For Bank Reconciliation purposes, configure the GL Default called AR_Deposit_Clearing_Account so that you don't see the additional debit and credit to Cash when comparing Deposits to your Bank Statement.

Populate a Clearning Account in the GL Defaults for your Cash Account not to be hit every Application of Deposits.