Common Terminology

Cash handled by the Cash Receipt transaction includes:

• Checks

• currency

• electronic funds transfer

• any type of electronic payment

• credit card payments

• debit card payments

• cashier’s check

• payroll deduction

• money order

A process used to refer a significantly past due receivable to an external collections agency. Future billing is automatically suppressed.

A strong notice to a customer for a delinquent account. The letter informs the customer that further collection actions will be taken.

Sent at a user-defined interval against a customer’s account. It lists a beginning balance, end balance, and all transactions processed for a customer account since the last statement period. Statements can be used for billing, or as information summaries of an account.

A reminder that a payment is past due.

A payment to a vendor is offset and a portion of that payment is retained by the disbursing entity or remitted to a third party. Payments to a vendor may be intercepted on the basis of a Lien, a Tax Levy, a Garnishment, or a Receivable.

Payment schedules set up for customers who cannot meet their obligations before the due date and have agreed to an extended payment plan to repay their debts.

Represents an obligation of payment from a customer for goods or services provided to them or the anticipation of a receipt of money. Receivables are entered into the Accounts Receivable subsystem using the receivable transaction.

Revenue is inflows of resources that will be used by a site to perform functions. Some examples of revenues are:

• taxes

• user fees

• sales of goods & services

• donations

• federal grants

For governmental funds, these resources must also be "available," which means the monies are received within a designated number of days after the fiscal year end.

A budget line that defines a set of chart of accounts that can be used to bill and collect money. When money is billed, collected, or estimated it is totaled for the line.

The chart of accounts element that reflects the source of money for an activity or an objective.

There are two types of receivables:

• Regular receivable – This is the default receivable type and typically results in the generation of an invoice or statement to bill customers. A regular receivable is eligible for the accrual of finance charges and other collection actions.

• Summary receivable – This type of receivable is most often used to record Accounts Receivable information maintained in systems external to Advantage Financial. No bill is generated and a summary receivable is not eligible for finance charge accrual or automatic netting or collections. (For more information about netting, see Handling Automatic Netting and Credit Balances.)

An increase to bad debt expense to liquidate a past due receivable when payment for a receivable cannot be collected.