Credit Card Reconciliation

1. Credit Card Reconciliation Finance Systems Training Finance Business Solutions – User Support & Training

2. Agenda • What is Credit Card? • Process flow • Add to favorites • Identify cards that needing reconciliation • Customise your screen layout • Reconcile a statement • Reconcile personal expenditure • Disputed Transactions • Statements & Attachments • Reports

3. NS Financials Overview Expenses Asset Management Credit Card eProcurement Accounts Payable Purchasing Billing Accounts Receivable General Ledger

4. What is Credit Card? • Credit Cards are issued to employees to pay for Travel and University expenses. • Eliminates the need for employees to claim reimbursable expenses. • Assets should not be purchased with the Credit Card. • Cards are to be reconciled monthly or they could be cancelled. • No Receipt – Choose GST code NIAO.

5. Responsibilities UNSW Credit Card Procedure http://www.fin.unsw.edu.au/files/CreditCard/Credit_Card_Procedures.pdf UNSW Finance Website – Credit Card Services https://www.fin.unsw.edu.au/OurServices/FinancialOperations_CreditCard.html • Cardholder • Reconciler • Manager/Approver

6. Cardholder Responsibilities - UNSW Business Purposes / NOT personal expenses - Personal Expenses must be reimbursed • Reconciled monthly – Must notify Reconciler/Card Administrator of extended absences - Provide Reconciler with – Chartfields, Invoices/Receipts and Supporting Documents - No Tax Invoices or Receipts – Transaction Declaration form required. - Identify disputed transactions promptly and action immediately - Cardholder and their manager to sign statements.

7. Reconciler Responsibilities - Reconcile no later than 14 days after the end of the statement period. - Notify Card Administrator if rec cannot be completed within timeframe. - Ensure disputes are raised immediately. Staff should also notify Cardhelp if they have flagged an item as in dispute. - Print Statements only after receiving notification at the end of each statement period AND only after each transaction has been reconciled. • Attach Receipts/Tax Invoices/Supporting Documents to the statement. • Before sending on to Accounts Payable - Cardholder & the Cardholders Manager must sign.

8. Manager / Approver Responsibilities - Confirm all transactions are for UNSW business purposes and have an attached Tax Invoice or Receipt and supporting documentation where appropriate - Ensure reconciliations are correct – Comments, Chartfields, Tax Codes - If approving transactions without supporting Tax Invoices or Receipts, ensure they have signed the Cardholders signed Transaction Declaration form and Tax Code changed to NIAO for these transactions - Sign all statements after confirming transactions & reconciliations - If absent for UNSW for extended periods, delegate authority and notify Accounts Payable – cardhelp@unsw.edu.au

9. Process Flow Card Administrator loads file daily. Yennie Fadjar Ext. 53885 Bank sends daily file to UNSW and direct debits UNSW’s bank account monthly. Cardholder makes purchase. Reconciler Reconciles transactions daily, weekly or monthly. Prints Statement monthly when email received. Arranges for Cardholder and their Manager to sign the Statement. Scans receipts & signed statement and add as Credit Card Attachment in NS Financials YOU Compliance Officer records Statement as received in NSF (returns Statement if receipts missing etc). Compliance Officer performs audit of Statements.

10. Workflow e-mails Statements: • When to Print Statement • Compliance Officer - Overdue Statement & Documentation Reconciliation Reminders: • Transactions overdue - 21 day reminder email Budget Checking Errors: • Budget Checking Errors

11. The Credit Card Menu

12. Searching for statements

13. Searching for statements

14. Customise your screen layout

15. Customise your screen layout

16. Customise your screen layout

17. Customise your screen layout

18. Customise your screen layout

19. Customise your screen layout

20. Each purchase must have: • A Business Purpose • An Expense Type • Comments • Chartfield Combination /Accounting Distribution • Approval

21. Reconciliation steps • A Business Purpose • An Expense Type • Comments • Chartfield Combination /Accounting Distribution • Approval 2 3 4 5 1

22. Comments 1. Modem 2. Shaleen Batra 3. Replace existing faulty modem Comments are mandatory – they will appear in the reports //

23. Exercise 1: Single Line Go to Reconcile Statement Select any transaction line and reconcile the item: • Business Purpose • Expense Type • Comments • Chartfield Distribution incl. GL Account Code • Status Chartfield Combinations Use the defaults or one of the following FUND: OP001 OR FUND: OP001 DEPT: CEIC DEPT: PHYS PROJ: N/A PROJ: N/A

24. Split Chartfields / Accounting Distribution Account Distribution Icon

25. Exercise 2: Multiple Chartfields Use the existing transaction line Select the distribution icon: • Select the Distribution Icon • Update the Amount or Percent field • Select to add a new Distribution line • Update the Chartfield Distribution on the second line • Status Chartfield Combinations Use the defaults or one of the following FUND: OP001 OR FUND: OP001 DEPT: CEIC DEPT: PHYS PROJ: N/A PROJ: N/A

26. Mixed Supply GST Invoice? • Ensure the GST code in system matches to Tax Invoice • Does the tax calculated by the system agree to GST on Tax invoice? • GST 1/11th of Total invoice/sale price • Look out for items marked with symbols • Invoices may also show GST calculations • Mixed Supplies – need to enter Taxable items and GST free items on separate lines with GST code (Telstra bills, Cabcharge, Hotels, Travel, basic food, etc) • Calculate the pre GST amounts for taxable totals prior to reconciliation

27. When Does GST Apply? • When is it applicable? • Taxable supply • for consideration • in course of furtherance of carrying on enterprise • connected with Australia • registered or required to be registered • not GST free or input taxed • Taxable sales • price includes GST • pay GST on sales • claim GST on purchases • 1/11th of Total invoice/sale price • When is it not applicable • GST free sales • Basic food - meat, milk, bread, fruit and vegetables • Most education, child care, health • Most exports – goods within 60 days • Can claim a input tax credit on purchases • Input Taxed sales • Residential property • Financial transactions • Cannot claim GST credit

28. Exercise 3: Group Invoice Task In groups of 2 or 3 review each of the 9 invoices Indicate which of these is for: • Taxable items only • Tax Free items only • both Taxable and Tax Free items – that is have a mixed GST treatment and would require splitting lines Taxable Invoices: GST = 1/11th of the Total Tax Free Invoices: GST = $0.00 Mixed Treatment Invoices: GST NOT = 1/11th of the Total

29. Important: Invoice & Systems Tax Match Tax Free Invoices: GST = $0.00 Invoice 3 – Boris FX Invoice 9 – Voyager The systems will automatically apply a GST FREE default to FX transactions. Taxable Invoices: GST = 1/11th of the Total Invoice 1 – Officeworks Invoice 2 – Redcoal Invoice 4 – Optus * Invoice 6 – Apple Store Invoice 7 – Cabcharge * Invoice 8 – Integrated DNA Technologies * You may wish to consider the use of BULK Purchase orders for these suppliers. - prior payments received - previous unsettled charges - tax free items Refer to Finance Knowledge Base under Purchasing for guidance – Mixed Treatment Invoices: GST NOT = 1/11th of the Total Invoice 5 – Coles Randwick Taxable Items – $ 7.21 GST – .72 Tax Free Items – 33.67 Total - $ 41.60

30. Tax Invoice Examples

31. Splitting Lines Note: When you split a line it is split, you cannot unsplit it. If you make a mistake you will need to be creative.

32. STA Tax Invoice Example Is the GST Amount 1/11th of the Invoice Total? This invoice includes both taxable and tax free items

33. NS Financials – Credit Card Reconciliation • Merchant Fee is taxable - $19.83 + $1.98 GST • Remaining charges - $1,453.79 Tax Free Business Purpose : Travel International & Expense Type : Airfare International - Defaults VAT code to FRAO (tax free)

34. NS Financials – Credit Card Reconciliation • Merchant Fee is taxable - $19.83 + $1.98 GST • Remaining charges - $1,453.79 Tax Free

35. NS Financials – Credit Card Reconciliation • Merchant Fee is taxable - $19.83 + $1.98 GST • Remaining charges - $1,453.79 Tax Free

36. NS Financials – Credit Card Reconciliation • Merchant Fee is taxable - $19.83 + $1.98 GST • Remaining charges - $1,453.79 Tax Free Business Purpose : Travel International Expense Type : Other GST, or Transact Fee GST-Intl Airfare - Defaults VAT code to AO (taxable)

37. Exercise 4: Mixed GST – Split Line Select an AUD transaction line Reconcile the transaction: • Select a Business Purpose & Expense Type • Enter comments for the transaction item • Select the Distribution Icon & complete the Chartfields • Ensure only the line you want to spilt is selected (ticked) • Select Split Line • Enter description (e.g. Tax Free Item) & Update the Amount • Select to add a the second line • Enter description (e.g. Taxable Item) & Confirm the Amount • Select OK to confirm the split Note: once you do this you cannot reverse the split. • Update the VAT for the Tax Free line to FRAO • Update Status & Save

38. Disputed Transactions Raise disputes promptly and advise the Card Administrator – cardhelp@unsw.edu.au

39. Disputed Transactions Business Purpose Other Expenses Other GST/ No GST Expense Type 6486 Account

40. Disputed Transactions

41. Exercise 5: Dispute a Transaction Select any transaction line Reconcile the transaction: • Select Business Purpose Other & Expense Type Other GST / No GST • Enter comments for the transaction item • Select the Distribution Icon & complete the Chartfields Note the GL Account Code should be updated to 6486 • Update Status & Save • Select the Disputed Transactions tab • Enter the Amount in Dispute • Enter the Description “In Dispute” • You would also usually email the Card Administrator to advise a dispute has been raised – cardhelp@unsw.edu.au • You should include the Cardholder Name & ID, Merchant, Amount Disputed

42. Personal Spend Default GL Account – IMPORTANT: DO NOT CHANGE ACCOUNT: 7573

43. No Receipts - Transaction Declaration Form IMPORTANT: CHANGE VAT CODE TO NIAO

44. Exercise 6 & 7: No Invoice & Personal Spend Select any transaction lines Reconcile a transaction for an item without an invoice/receipt: • Select a Business Purpose & Expense Type • Enter comments for the transaction item • Select the Distribution Icon & complete the Chartfields • Select the No Invoice tick box • Update the VAT for the line to NIAO • Update Status & Save Reconcile a transaction for a Personal Expense: • Select Business Purpose Private Expend & Expense Type Private Expend • Enter comments – 1. Personal Expense, 2. Name, 3. To be reimbursed to UNSW • Select the Distribution Icon & complete the Chartfields Note - Do not change the GL Account: 7573 • Update Status & Save

45. Print Statement

46. Print Statement

47. Print Statement

48. Statement

49. Signature Requirements Line Manager signature on the statement is mandatory and this responsibility cannot be delegated. Cards that fail this audit are in danger of being cancelled.

50. Adding Scanned Attachments • Print your statement and have the cardholder and their manager sign it (this is an ATO requirement). • Once you have scanned your signed statement and receipts for the period (click here for tips on scanning) you should attach them electronically to your statement in NS Financials.  You can scan them into one file or several files, it is up to you.