Recognition of Credit Card Revenues

(GL Entries for Credit Card Transactions)

Presented by: B.C. Worsley

Banking Coordinator924-4362, bsw5w@virginia.edu

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

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

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

Deposits are sent to the University’s bank account at Bank of America by each processor.

American Express charges Discover chargesMasterCard

& Visa Charges

Accounting Services transfers each departmentdeposit into a clearing account for

each card type

Accounting Services DEBIT the bank ….

Debit

and Credit the department’s clearing accounts

-Credit

This is how the informationlooks on the Bank statement

Your debit to the

Clearing Project.

Accounting Service's

credit for the deposit to

the Clearing Project.

This is how the entriesappear in Oracle in theClearing Projects

Source Documents Swipe Batch Tape Your NameAnywhere on Emmet StCharlottesville, VA 22

Terminal ID 215443322

Transaction TotalsBy Issuer Mar 03 07

VISASales 3 $ 500.00Refunds 0 0.00TOTAL 3 $ 500.00

DISCOVERSales 2 $ 145.00Refunds 1 $ -45.00TOTAL 3 $ 100.00

AMERICAN EXPSales 1 $ 35.00Refunds 0 $ 0.00TOTAL 1 $ 35.00

MCardSales 2 $ 100.00Refund 2 $ - 25.00TOTAL $ 75.00

TERMINAL I.D. QV47BYE

MERHANT #: 80001234567NOVA

Mar 02, 07 17:35

GBOK 35701251537

GRAND TOTALSSales 8 $ 780.00Refunds 3 $ 70.00TOTAL 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

Batch number will generally be the first two or three numbers immediately followingGBOK (credit card batch number) 357

NOVA MERCHANT NUMBER

Web/Viaklix Source DocumentsSelect “Settled Transactions”

Click once on “Settle Date”for the batch that you wantto record today (the newestare at the top of the page)

The next screen showsthe batch detail necessaryto make your entries. Printthis page.

Add MC and Visa totalsand Debit the CC clearingproject.

Debit the CX clearing project for theAmerican Express “Net Total”

CREDIT your revenue project for the TOTAL of “ALL CARDS

Recording the batches into GL

• Sign on to VPN

• Sign on to ORACLE

• Select “GL Specialist”

• Select “New Journals”

Select “New Journal”

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.

The birth of an Alias

An Alias is the offspring of individualaccount numbers. It is the Card Code

CCCDCX

and the last four digits of the account number.

MasterCard/Visa 8XXXXX1234 = CC1234Discover 6011 XXXX XXX5 678 = CD5678AmericanExpress 445XXX9101 = CX9101

Project Creation

The project number for Bank Deposits AND Credit CardClearing 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.)

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

▼

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

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.

Remember to “RESERVE FUNDS”, and then, “APPROVE” the Funds

Save your transaction!

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

REPEAT TOMORROW!

This is where “Policy” rears it’s ugly head

You will make these depositsevery day or else!!!

This is a revenue generating activity and even thoughcredit card sales do not look like “CASH”, they are deposits andshould 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 inthe middle of the night for WEB, immediately means the next business day after the credit cardbatch is settled.

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.