Accounting Finance:New Member - Account Statement (Special Payment Plan) - setting up subsequent statements after final opening statement

Account Statement (Special Payment Plan

• An Account Statement (Special Payment Plan) is used to assist the customer in the reconciliation of initial purchases and payments.
• It is important to distinguish between inventory and non-inventory transactions such as share payment and RSG fees.
• The initial order calculation is based only on inventory transactions.
• Adjustments – a credit adjustment is used to clear all current inventory transactions from the current period and a debit adjustment is used to apply special payment terms. The net result is zero; the adjustments do not affect the customer’s account balance but instead move the due dates into 6 installment periods.
• First payment will include 1/6 of initial purchases
• Subsequent statements will include 1/6 of initial purchases and all current transactions

Statement of Account

• Check INS A/R Installment invoice total (total to be the same amount as your calculated initial order and non-inventory instalments
• Check CAD A/R Cash Discount (total should be the same amount as previous statement eligible discount amount)
• Statement now shows the true balance due – Pay this amount
• Future Dated invoices are now the total value of both inventory and possibly non-inventory invoices

Account Statement

Purchases

• Re-name file and save in new directory common/ar/2006/special payments/(store name)/file name
  1. 1. Change date
  2. 2. Extract from statement total inventory transactions (invoices, adjustments plus credits) and enter in the invoice column
  3. 3. Extract from statement total non-inventory transactions (invoices plus credits) and enter in the Invoice (NI) column
  4. 4. Extract from statement total inventory dated transactions (invoices, adjustments, plus credits) and enter in the Dated column
  5. 5. Extract from statement total non-inventory transactions (invoices plus credits) and enter in the Dated (NI) column
  6. 6. Enter all current transactions (invoices, adjustments plus credits) in the Total column
  7. 7. Enter the dated total in the Dated Invoices field
• Check field “B17” and make sure it is zero

• Initial Order Payment Under total deduct the next payment
• Date (NI) Invoices – set-up Reference, Invoice and Paid columns (total owing should equal Dated (NI) total

Credit Card Deposits

• Enter all credit card deposits

Special Payment Plan

• Change date on title
• Statement of Account

-#1. Change date on Balance Forward field

-#2. Enter balance forward amount under current period

-#3. Link current purchases and adjustments to correct field in Purchases sheet

-#4. Link credit card deposits to correct field in Credit Card Deposits sheet

-#5. Link EFT and EFT discount to correct fields in EFT sheet

-#6. Year to date (no linking is required, the template should be linking correct totals from other sheets)

-#7. Make sure amount owing in current period and year to date are the same as total account balance on Account Statement

• Balance Forward Calculation

-Change date on Total Due

-No manual entry is required (adjusted EFT and discount are linked to EFT Calculation)

• Initial Order Payment Schedule (no entry required, Payment Date and Total Purchases are linked to Purchases sheet)
• EFT Calculation

-Change date in EFT Calculation fields

-Enter applicable discount for current period

• Totals Reconciliation

-Current - there should be no differences and the balance should be zero

-YTD - the balance is not zero because EFT sheet has not been filled out

• Prior Period Adjustment (list any prior period adjustments – most likely missing or not deducted discounts from prior periods). The balance should be zero.

EFT

• Enter Date, Reference Purchases and Discount for current EFT
• Note the EFT which was processed after the statement had been printed was included to reduce the EFT amount

Special Payment Plan

• Totals Reconciliation – there should be no differences and the balance should be zero
• The front store and balance forward totals in YTD should be equal to the total dated invoices

• Enter note to assist in the interpretation of statement
• Print Account Statement in colour
• Save worksheet

Special Payment Member's Letter

• Change date
• Ensure all statements and reports mentioned are applicable
• Change commencing dates
• Change EFT date