PeopleSoft Student System Account Receivables

The PeopleSoft Student System account receivables are comprised of two distinct components:

1) Student Receivables - uncollected student tuition and fee assessments
2) Third Party Receivables - Student and/or bookstore receivables for which a third party sponsor is responsible for payment.

Student Account Receivables - Write-off Processes

There are three categories of account receivables aging:

1) Current - receivables which are less than 180 days old
2) Allowance for Doubtful Accounts - receivables that are greater than 180 days old but less than 360 days old.
3) Bad debt - receivables which are greater than 360 days old

Note: A calendar year is defined as 360 days for this purpose

The write-off process is performed twice per year, as of December 31 and again as of June 30. Only receivables, which fall into the categories of "Allowance for Doubtful Accounts "and" Bad Debt, will be included in the write-off process. Following is a summary of the write-off process for each receivables category:

1) Student Receivables:

a) Allowance for Doubtful Accounts - This G/L entry will record an expense to the college (51022-01-700015-01000-99114) with an offset credit entry to the college's fund 01 asset account Allowance for Doubtful Accounts, acct. number 12300. There will be no entry to the student's account in the Student System.
b) Bad Debt - This entry will be to write-off any Allowance for Doubtful Accounts amount that has not been collected. The G/L entry will be to debit the college's fund 01 Allowance for Doubtful Accounts and credit the college's fund 01 Student Receivables account, acct. number 12100. There will be a corresponding entry to the student's account to pay off the debt, with the description of "write-off" in the Student System. There will also be a business office hold service indicator placed on the student's account to prevent registration until the college releases it.

2) Third Party Receivables:

a) Allowance for Doubtful Accounts - This G/L entry will record an expense to the college (51022-01-700015-01000-99114) with an offset credit entry to the college's fund 01 asset account Allowance for Doubtful Accounts, acct. number 12300. There will be no entry to the Third Party account in the Student System.
b) Bad Debt - This entry will be to write-off any Allowance for Doubtful Accounts amount that has not been collected. The G/L entry will be to debit the college's fund 01 Allowance for Doubtful Accounts and credit the college's fund 01 Student Receivables account, acct. number 12100. There will be a corresponding entry to the third party account to pay off the debt, with the description of "write-off" in the Student System.

Steps Utilized by Colleges to Determine Estimated Write-off Amount

Step 1:

Run the query K_STUDENT_BALANCES_ALL_TERMS from the Student Module. This query prompts by Home Campus and brings back all students who have an outstanding balance not equal to zero. The query is set up to bring back the students in alphabetical order so we will want to subtotal the spreadsheet by student. From here what we will do is look at all the students and delete any student that has a line with a credit balance.

Home Campus	ID	Name	Career	Acct Type	Acct Term	Sum Balance
LCC		Student A	UGRD	EXC	4054	(686.00)
		Student A Total				(686.00)
LCC		Student B	UGRD	TUT	4056	20.00
		Student B Total				20.00
LCC		Student C	UGRD	EXC	4054	(281.62)
LCC		Student C	UGRD	TUT	4054	281.62
		Student C Total				-
LCC		Student D	UGRD	EXC	4032	(6.00)
LCC		Student D	UGRD	TUT	4032	6.00
		Student D Total				-
LCC		Student E	UGRD	TUT	4054	48.75
		Student E Total				48.75
LCC		Student F	UGRD	TUT	4054	1,298.46
		Student F Total				1,298.46
LCC		Student G	UGRD	EXC	4024	(59.00)
LCC		Student G	UGRD	TUT	4024	141.00
		Student G Total				82.00
LCC		Student H	UGRD	TUT	4056	3,008.00
		Student H Total				3,008.00
LCC		Student I	UGRD	TUT	4056	111.50
		Student I Total				111.50
LCC		Student J	UGRD	TUT	4044	387.38
		Student J Total				387.38

The students highlighted in yellow will be deleted since they contain a line with a credit balance.

LCC	Student G	UGRD	EXC	4024	(59.00)
LCC	Student G	UGRD	TUT	4024	141.00
	Student G Total				82.00

Once this is completed we removed the subtotals and then we need to sort by Acct Term and then subtotal by Acct Term. This now has the information we need to determine the Write Off (360+ days) and Expense amount (180+ days). (Note: In the following example we are writing off terms 4044 and back and will be expensing terms 4046 and 4052.)

We are going to Write-off the sum of Acct Term 4044 and back. In this example we will be completing a write-off in the amount of $234,147.26.

(Note: Since we have all ready Written-off Terms 4004 - 4042, we may still have a balance due, we will Write Off these terms as well. This will not affect any expense account and the college is not being charged again for this Write Off. The main cause of a past Write-off terms showing up again, is due to the original Write-off was reversed to accept collections, but the entire amount was not collected. This causes the student to have a balance due for this term).

The Write Off process will be completed through the delivered PeopleSoft Student Financials process and create the journal entries as:

Debit:

68030-12300-01-9999999999-99999-00

Credit:

68030-12100-01-9999999999-99999-00

Step 2:

Determine the new amount that will be expensed for balances 180+ days due.

Add the balances due from term 4046 and 4052 for a total of $293,376.57.

From this total of $293,376.57 we would subtract the amount in the Allowance account 12300 at 12/31/05 ($167,911.06) for a new expense at 12/31/05 of $125,465.51. (Note: To obtain the balance in the 12300 account, we run the General Ledger Activity Report.)

This process will be completed by the Systems Office with a manual journal entry where:

Debit:

68030-51022-01-700015-01000-99114

Credit

68030-12300-01-9999999999-99999-00

Step 3:

This step will be forth coming once we fix the Third Party errors.

Page last updated Fri Oct 26, 2007 3:45 PM by Buddy Combs