Recognition of Credit Card Revenues (GL Entries for Credit Card Transactions)

1. Recognition of Credit Card Revenues(GL Entries for Credit Card Transactions) Presented by: B.C. Worsley Banking Coordinator 924-4362, bsw5w@virginia.edu

2. Today we will discuss: • Entering credit card transactions into the Integrated System (Oracle) • The addition of New Clearing Projects • Overview of Aliases and Clearing Projects

3. GL Entries for Credit Card Transactions New Clearing Projects for: MasterCard/VISA CC _ _ _ _ American Express CX _ _ _ _ Discover Cards CD _ _ _ _ Revenue and Collections BC 2/07

4. What am I supposed to do and why? It all begins at the credit card terminal or the department’s web site Credit card sales Processed by NOVA MasterCard & Visa Charges American Express charges Discover charges Deposits are sent to the University’s bank account at Bank of America by each processor.

5. This is how the information looks on the Bank statement Accounting Services transfers each department deposit into a clearing account for each card type Accounting Services DEBIT the bank …. Debit -Credit and Credit the department’s clearing accounts

6. This is how the entries appear in Oracle in the Clearing Projects Your debit to the Clearing Project. Accounting Service's credit for the deposit to the Clearing Project.

7. Source Documents Swipe Batch Tape Your Name Anywhere on Emmet St Charlottesville, VA 22 Terminal ID 215443322 Transaction Totals By Issuer Mar 03 07 VISA Sales 3 $ 500.00 Refunds 0 0.00 TOTAL 3 $ 500.00 DISCOVER Sales 2 $ 145.00 Refunds 1 $ -45.00 TOTAL 3 $ 100.00 AMERICAN EXP Sales 1 $ 35.00 Refunds 0 $ 0.00 TOTAL 1 $ 35.00 MCard Sales 2 $ 100.00 Refund 2 $ - 25.00 TOTAL $ 75.00 TERMINAL I.D. QV47BYE MERHANT #: 80001234567 NOVA Mar 02, 07 17:35 GBOK 35701251537 GRAND TOTALS Sales 8 $ 780.00 Refunds 3 $ 70.00 TOTAL 10 $ 710.00 Add VISA and MasterCard totals and DEBIT your CC alias: 500.00 + 75.00 = 575.00 to CC_ _ _ _ Discover = 100.00 to CD _ _ _ _ AmExp = 35.00 to CX _ _ _ _ CREDIT your revenue account for the “Grand Total” 710.00 NOVA MERCHANT NUMBER Batch number will generally be the first two or three numbers immediately following GBOK (credit card batch number) 357

8. Web/Viaklix Source Documents Select “Settled Transactions” Click once on “Settle Date” for the batch that you want to record today (the newest are at the top of the page) The next screen shows the batch detail necessary to make your entries. Print this page. Add MC and Visa totals and Debit the CC clearing project. CREDIT your revenue project for the TOTAL of “ALL CARDS Debit the CX clearing project for the American Express “Net Total”

9. Recording the batches into GL • Sign on to VPN • Sign on to ORACLE • Select “GL Specialist” • Select “NewJournals”

10. Select “New Journal”

11. Naming Convention – What do I call this entry?? Journal = _ _ - _ _ _ _ _ Credit Card Deposits DD-MM-YYYY Org Prefix Your ID Today’s Date Category = UVA Receipts–Credit Cards Description = CC Batch # and CC Batch date from the Settlement. Control Total = total of the credit card batch or batches that you are entering.

12. The birth of an Alias An Alias is the offspring of individual account numbers. It is the Card Code CC CD CX and the last four digits of the account number. MasterCard/Visa 8XXXXX1234 = CC1234 Discover 6011 XXXX XXX5 678 = CD5678 AmericanExpress 445XXX9101 = CX9101

13. Project Creation The project number for Bank Deposits AND Credit Card Clearing Projects both begin with… 980 _ _ _ The last three number are TOTALLY RANDOM! (Well maybe not entirely, for some of you whose accounts have been around for a while, the MC/VISA number mayl be in the lower 300’s, the Discover number 600’s and the American Express in the 900’s. But, this is not something you can count on.)

14. Tab to the first Line and Enter “1”. Use the drop-down to enter the Alias for each card type. This will populate the line with your clearing account project string. ▼ Use the drop-down Enter the Alias Repeat for each card type CC _ _ _ _ for MasterCard/Visa CD _ _ _ _ for Discover CX _ _ _ _ for American Express

15. You may want to add each card type to the line description for each entry to a clearing project.

16. Finish the entry • To complete the GL entry you must determine what revenue project that you should credit. • My revenue string is: Entity Project Fund Source Object Code Org Code _ _._ _ _ _ _ _._ _ _ _ ._ _ _ _ ._ _ _ _ _. 0000 Enter the TOTAL of the batch in the credit column. The description “WEB BATCH 342 120607” will be populated on the credit line description too. • Then, “Save” your work.

17. Save your transaction! Remember to “RESERVE FUNDS”, and then, “APPROVE” the Funds

18. Make a copy of the completed transaction if your department requires it.

19. REPEAT TOMORROW!

20. This is where “Policy” rears it’s ugly head You will make these deposits every day or else!!! This is a revenue generating activity and even though credit card sales do not look like “CASH”, they are deposits and should be treated as such and “must be recorded immediately “ (See Policy II.E.4 Controlling Cash Items). Since the batches are not settled until the end of the day for swipe terminal accounts and in the middle of the night for WEB, immediately means the next business day after the credit card batch is settled.

21. Questions • What does the department have to do to prepare for the addition of the new card types? For the most part, nothing. Swipe Terminal merchants’ new numbers will be given to NOVA. Then, the new card type will simply be processed and not declined. Web acceptance will work the same way, Nova is given the new account numbers, the gateway opens up to the new card types and customers can pay with all of the cards that we accept. Web Page Developers in each department may need to be informed of the addition of new card types in order to change any payment options addresses in the text on the Web page.