lesson 4: reconciling transactions

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Lesson 4: Reconciling Transactions

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Training Objectives

At the conclusion of this lesson, PCMS LAPC’s and APC’s will be able to:

Query a cardholder account.

View, dispute and reconcile transactions.

 -

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Overview - Main Window

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Main Window – ID Information

Field Name DescriptionName The cardholder’s name as it appears on the card. Account Number

This field contains two parts: - Program code - Last 10 digits of the purchase card account number.

Organization This field contains four parts: - Department Code - Agency code - Unit code - Sub unit code

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Main Window – Transaction Tab

Field Name DescriptionApproved Date The date the transaction was approved by the Cardholder. Purchase Date The date the purchase was made. Transaction Amount

The cost of the purchase.

Merchant Name Name of the Merchant from whom the procurement was made.

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Main Window – Transaction Tab

Field Name DescriptionMerchant Address The street address where the merchant is located.Merchant City The city where the Merchant is located.Merchant State The abbreviation for state where the Merchant is located.

Invoice Paid Date Date the invoice was paid.

Merchant Zip The zip code where the Merchant is located.

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Main Window – Transaction Tab

Field Name DescriptionAction Code The current action on the transaction:

A = Approved Q = QuestionableD = Disputed U = Unapproved R = Resolved

(Dropdown menu)

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Main Window – Transaction Tab

Field Name DescriptionItem Description Description of the item purchased.Comments Enter any comments.

Transaction Status Displays the current transaction status in FFIS. Not editable by the user.

Conv Check No. The convenience check number, if check was used.

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Main Window – Transaction Tab

Field Name DescriptionDate Received Date the goods were received by the purchaserSF-281 Code Code required for purchases over $2500. A <List of values>

is available for this field.Tax ID Number Merchant’s tax ID number, or employee’s SSN. A <List of

values> is available for this field.Agency Ref Number The agency reference number.

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Main Window – Purchase Detail Tab

Field Name DescriptionMerchant Name The name of the Merchant from whom the procurement was

made. Transaction Amount The cost of the purchase.

Freight Amount The cost of freight to send the item.

Duty Amount Duty amount applied to the transaction.

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Main Window – Purchase Detail Tab

Field Name DescriptionSales Tax The amount of sales tax for the item. Order Date The date the item was ordered by the Cardholder. Authorized Contact Name

Name of authorized Merchant contact.

Authorized Contact Phone

Phone number of authorized Merchant contact.

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Main Window – Purchase Detail Tab

Field Name DescriptionDiscount Amount Amount of discount applied to the transaction. Quantity Number of items purchased.

Unit of Measure Item unit of measure. Unit Cost Cost per item.

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Main Window – Purchase Detail Tab

Field Name DescriptionProduct Code Item Product Code.Purchase Detail Description

Description of item purchased.

Item Total Item Total.

Type of Supply Type of Supply.

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Main Window – Transaction Maintenance Tab

Field Name DescriptionAgency The agency codeStation The accounting station code

Accounting Code The accounting code against which this portion of the transaction is to be charged.

Account Description The description of the accounting code.

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Main Window – Transaction Maintenance Tab

Field Name DescriptionObject Class The BOCC. This code defines the nature of the services or

good being obligated. A <List of values> is available for this field.

Dist Amount The amount of this transaction being applied to this accounting code.

FFIS Doc ID The Document Identification of the original transaction, until the document is sent to FFIS.

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Main Window – Transaction Maintenance Tab

Field Name DescriptionComments Additional information concerning this line of accounting

Total Amount The total amount of the transaction

Click this button to modify an individual line of accounting.

Click this button to modify all accounting information.

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Main Window – Disputes Maintenance Tab

Field Name DescriptionPurchase Date The date the purchase was made.

Merchant Name The Merchant’s name.

Reference Number The number assigned to the transaction by the input source.

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Main Window – Disputes Maintenance Tab

Field Name DescriptionDispute Code The code that identifies the type of dispute

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Main Window – Disputes Maintenance Tab

DisputeCode Description

1 Unauthorized mail or phone order2 Duplicate processing

3A Merchandise or service not received in the amount of3B Merchandise or service not received in the amount of4 Merchandise returned in the amount of5 Credit not received6 Alternation of amount7 Inadequate description / unrecognized charge8 Copy request

9A Service not received9B Service not received10 Not as described11 None of the above

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Main Window – Disputes Maintenance Tab

Field Name DescriptionShort Description A brief description associated with the dispute.

Date Disputed Actual date the dispute was initiated. Defaults to the current date. Type over if actual date is different.

Date Resolved Date the dispute was resolved.

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Main Window – Disputes Maintenance Tab

Field Name DescriptionDate Merchant Contacted

Date the merchant was contacted.

Amount Amount in dispute.

Comments Additional information to be added to the record

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Querying Transactions

Cardholder can query all their transactions OR specific transactions.

APC\LAPC can query transactions of all their designated Cardholders OR a specific transaction of a specific Cardholder.

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Querying All Transactions

Hit the Button on the Command Bar.

Cardholder Accounts and Details Will Appear.

Use scroll bar to navigate between Cardholders.

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Querying Specific Transactions

Hit the button on the command bar. Select a specific account. Place cursor in any field and hit the button. Account information will remain, field values in the Card Transaction

area will be cleared. Any field in the Card Transaction area can now be queried on. Place

the cursor in any of these fields and enter a value you wish to search on.

Hit the button; Query results will appear. Range operators and wildcards can be used

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Practical Exercise

1. Query all Cardholder accounts, then query a specific Cardholder account from the list of Cardholder names.

2. Execute a specific query to find all transactions where the Merchant is located in California (CA).

3. Query transactions greater than $50.00.

4. Query a specific Merchant name and view a shorter list of transaction for the Cardholder. E.g. Toshiba, ACE or Spectrum.

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Reconciliation Process

1. View the Transaction in PCMS.

2. Verify the Transaction Details Are Correct Against Paperwork and Ensure All Details Are Correct.

3. Select Action Code.

4. Enter Comments and Dates.

5. Modify Lines of Accounting If Necessary.

6. Save Transaction.

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Reconciling Check Transactions

1. Must obtain the Merchant’s TIN at the time of purchase .

2. Merchant Address, Merchant City, Merchant State, and TIN fields will appear white. Enter this information when the transaction is approved.

3. The Check Number will appear in Comments Field, Entered by the Bank .

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Action Codes

Days to reconcile from date of purchase:U – 30 daysQ – 30 daysD – 60 days

Does transaction have a status of "U"

Does transaction have a status of "Q"

Does transaction have a status of "D"

NO

NO

Have the goods\services been

receivedYES

Change the transaction status to Q and investigate the

problem. Try to resolve the issue.

NO

Is there a problem with the goods\

servicesYES

NO

Approve transaction. Change the status Code to A

YES

Change the transaction status to Q and investigate the problem. Try to resolve

the issue.

Has the issue been resolved?YES

Approve transaction. Change the status Code

to A

YES

Has a Retail Credit been recieved?YES

NO

YES

Does the transaction require

dispute?NO

Change the transaction status

to D. Try to resolve the issue.

YES

Continue to investigate and try to

resolve the issue within 30 days of the

Purchase date.

NO

Enter PCMS Card Transactions

screen and run a query on all

transactions. View a transaction.

Approve the Retail Debit. Resolve

disputed transaction.

Contact the Bank and continue to try

to resolve the issue.

Has a Merchant Credit been recieved

Approve the Merchant Credit

YES

Start here

Approve the Retail Credit.

Has a Retail Debit been received?

Contact the Bank and continue to try

to resolve the issue.

NO

YES

No further action. Bank will not contact Cardholder to inform status of dispute.

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Modifying Lines of Accounting

To modify a line of accounting currently attached to the transaction, click modify. All field values from that line, except Account Description, are copied to the bottom part of the window. Change the data as needed. Repeat these instructions for each line to be modified.

To modify all current lines of accounting, click Modify All Acctg. All current lines of accounting are copied to bottom part of the window. Change data as needed.

Click Save on the Command Bar to update the database

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Reconciling Credits

Transaction Credits Have a Minus Sign ( - ) in Front of the Transaction Amount:

View the Transaction.

From the Transaction Maintenance Tab, Change Action Code to Approved.

Hit Save on the Command Bar.

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Locked Transactions

• Locked Is the Only Status That Will Prevent a Cardholder From Being Able to Reconcile.

• The Different Accounting Status’ Are:

O = Obligated P = Paid By FFIS L = Locked N = New (Not Obligated and Not Paid)

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Locked Transactions

$ $$

Cardholder

Cardholder can onlyreconcile transactions

that do not have a locked status in PCMS

1. Transaction islocked while PCMSsends transaction

data to FFIS

4. ACFO/FS downloadsdata to PCMS

3. Treasury pays Bank

FFIS

2. FFIS processes accountinformation and sends

payment files to the Treasury.

$

Bank

Treasury

PCMS

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Practical Exercise

Note: Login with a Cardholder ID to complete the following exercises.

1. Reconcile the Transaction to “Sita Business System” in the Amount of $172.00 Using the Following Information:

a. Approve the Transaction.

b. A Computer Cart Costing $172.00 Was Due for Delivery on July 23rd 2002.

c. The Goods Were Received a Day Later Than Expected, Due to Inclement Weather.

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Practical Exercise

2. Reconcile the Transaction to “Standard Copy Products” in the Amount of $2,195.00 Using the Following Information:

a. Approve the Transaction.

b. Copier Materials Were Shipped Same Day Delivery on July 22nd 2002.

c. Goods\Services Were Received on the Date Expected.

d. The Correct BOCC Formation for This Transaction Is: 2672.

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Practical Exercise

3. Reconcile the Transaction to “Transcender Corporation” in the Amount of $2,644.00 Using the Following Information :

a. Approve the Transaction. b. The PC and Monitor Were Received on July 21st 2002.c. There Is Currently Not a Description Available for the SF-

281 Code.d. The Accounting Information Needs to Be Distributed

Across the Following Accounting Codes and BOCC’s: Accounting Code _____, BOCC _____, Distribution Percent 50% \ Accounting Code _____, BOCC _____, Distribution Percent 50%.

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Practical Exercise

4. Reconcile the Check Transaction to “Wilson Carpet Service” in the Amount of $1,000.00 Using the Following Information :

a. Approve the Transaction.b. Check No.: 001009.c. Merchant Location: Alexandria, VA.d. Tax ID No.: 52-7600000.e. Purchase Date Was July 22nd 2002 and Goods\

Services Were Received One Week After Purchase Date.

f. Bank Fee Should Be Calculated at 1.5% of the Check Amount.

g. Approve the Bank Fee Associated With This Check Transaction.

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Practical Exercise

5. Reconcile the Transaction to “Nyma Inc.” In the Amount of $59.00 Using the Following Information:

a. Only 5 of the 10 Glass Beakers Were Received on 07/30/97, Due to Low Stock Supplies. The Remaining 5 Beakers Will Be Shipped on 08/07/02 (Next Day Delivery).

b. Unit Price Is $5.50, Shipping and Handling Is $4.00.

c. Invoice Number: 56084.

d. Order Number: W58625-HAV.

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Practical Exercise

6. Reconcile the Transaction to “Corvision Media, Inc.” In the Amount of $705.00 Using the Following Information:

a. The Goods\services Were Received on the Date Expected, July 21st 2002.

b. Order Was for Cable Cutter (Hydraulic) $678.60; Twist Drills ¼” Diameter, 6-1/8” Overall Length $26.40.

c. The Twist Drills You Received Were 1\2” Diameter.

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Disputes

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Disputes

When Should a Transaction Dispute Be Filed? When Invoice Amount or Goods/Services Received Are Not What

Cardholder Believes He/She Purchased. Before Filing a Dispute, Cardholder Should Investigate the Problem

and Attempt to Resolve. Cardholders’ Have 60 Days Following Purchase Date to Dispute

and Resolve a Transaction. Dispute Rights Do Not Extend to Convenience Checks or

Convenience Check Fees.

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Disputing a Transaction

From the Transaction tab select the transaction by placing the cursor in one of the fields on the line.

If the dispute is over merchandise not received, leave Date Received blank until the merchandise is actually received.

Go to the Transaction Maintenance tab and provide the appropriate reconciliation information.

Go to the Dispute Maintenance tab.

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Resolving Disputes

To Resolve the dispute, query the transaction and go to the Disputes tab.

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Resolving Disputes

Enter Date Resolved. Go to the Transaction Maintenance tab and update accounting

information, if necessary. Go to the Transactions tab and change the Action Code to Resolved. Click Save on the Command Bar

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Transaction Credits & Debits

$

Bank

Cardholder files adispute in PCMS

PCMS

Bank investigates the dispute

Bank issues a tempory credit.

$ $$

Cardholder Merchant

A transaction must be paid before it can be disputed.

After payment has been made, the description field of the transaction will display the message Accepted by FFIS.

If cardholder disputes a transaction, bank issues temporary credit to cardholder account while it investigating the dispute.

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Transaction Credits & Debits

The temporary bank credit is called a Retail Credit.

Retail Credit Adjustment will appear in Merchant Name with a minus ( - ) sign preceding the transaction amount.

The Cardholder must reconcile this transaction by approving it.

The bank tries to resolve the dispute with the merchant.

PCMS

$ $$

Cardholder

Cardholder Reconciles the temporary Retail Credit

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Transaction Credits & Debits

If the Dispute Is Found in the Cardholder’s Favor: A Transaction Credit will be issued by the Merchant. This transaction will display the Merchant name in the “Merchant Name”

field and will have a minus “-“ sign in front of the transaction amount. The Cardholder must reconcile this credit by approving it. The Bank will then issue a “Retail Debit” in PCMS, with the words “Retail

Debit Adjustment” in the Merchant Name field. The Cardholder will also reconcile this credit by approving it;

The disputed transaction is then placed in a Resolved State by the Cardholder

$ $

$

Cardholder

$

Bank PCMSMerchant

Merchant issuesa Credit

Bank issuesa Retail Debit

Cardholder reconcilesthe Merchant Credit,

Retail Debit anddisputed transactions.

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Transaction Credits & Debits

If the Dispute Is Found in the Merchant’s Favor: A The Bank Will Issue a Retail Debit, Which Offsets the Temporary

Credit. A Credit From the Merchant Will Not Be Generated. The Original

Charge to the Cardholder Account Will Stand. Cardholder Is Not Informed by the Bank That Dispute Found in the

Merchant’s Favor . When Cardholder Receives Retail Debit, Approve Debit and Place

Disputed Transaction in a Resolved State.

$

Bank PCMS

$ $$

Cardholder

Bank issuesa Retail Debit

Cardholder reconcilesthe debit and disputed

transactions.

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Practical Exercise Note: Login with a Cardholder ID to complete the following exercises.

1. Reconcile the Transaction to “Sita Business System” in the Amount of $432.50 Using the Following Information:

a. Goods\Services Were Received on the Date Expected, July 18th 2002.

b. Invoice States Order Placed Was: 2x Black Briefcases (Unit Price $43.55); 1x Audio Visual Cart 27” (Unit Price $320.45); Shipping and Handling Was $24.95.

c. The Amount Charged on the Invoice for the AV Cart Was Not the Amount Quoted at the Time of Purchase, Which Was $220.45.

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Summary and Review

1. What Are the Differences Between Reconciling Transactions Made With Purchase Cards and Transaction Made With Checks?

2. How Do You Query Transactions Valued Greater Than $200?

3. How Do You Navigate Between Transactions Without Returning to the Query Screen?

4. What Is the Process You Follow If You Find a Discrepancy Between the Cost of the Item on the Invoice and the Transaction Value in PCMS?

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Summary and Review

5. If You Order a Set of 10 Items and Only 5 Are in Stock and Shipped to You What Is the Reconciliation Process You Would Follow in PCMS?

6. What Is the Process for Disputing a Transaction?

7. What Is the Process for Resolving a Disputed Transaction?

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Intro

Lesson 5 - Messages

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Training Objectives

At the conclusion of this Lesson, you will be able to: Respond to user messages, statistical samples and system errors.

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Bulletin Board

Located in the center of the main window

Provides updates about PCMS. System Upgrades and

Downtime Notification of Specific System

Problems The DPC is responsible for the

posting of all messages to the Bulletin Board

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System Edits

If data is entered into PCMS incorrectly, or an attempted function is not allowed, the system will generate an error message.

Appear in dialog boxes Provide information that will help

you determine how to proceed Click OK to close the error

message This example indicates that data

entered is not recognized by PCMS and needs to be corrected.

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User Messages - General

An Oversight Tool That Monitors PCMS Transactions.

Assists Cardholders by Reminding Them to Approve Transactions Within Specific Time Constraints.

Assists LAPC’s in Their Oversight Role of Maintaining Daily Operation of PCMS.

The LAPC Is Expected to Routinely Review Cardholder Transactions.

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User Messages Screen Overview

Cardholders view their own messages.

LAPC’s view messages of their designated Cardholders.

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User Message Examples

Generated As a Transaction Meets a Predetermined Condition.

Recipient Will Receive Message.

Prompted to Review a Transaction and respond.

 Example 1An LAPC receives a User Message with the following statement in the “Messages” field: Transaction after account has been closed. Ensure that the transaction is valid. Note results of review and describe action taken in COMMENTS. The LAPC would need to determine if there is a valid reason that the transaction appeared in PCMS after the Cardholder account had been closed, or if the purchase card has been used without authorization. After review and resolution the LAPC would update the User Message in the “Comments” field with the review details.

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User Message Examples

   Example 2An LAPC receives a User Message with the following statement in the “Messages” field: Merchant appears to be liquor store. Review transaction to ensure valid purpose. Note results of review and describe action taken in COMMENTS. It is against USDA policy to purchase liquor using a purchase card, and the merchant category code in the transaction indicates that the merchant is a liquor store. The LAPC will need to determine what type of store the Merchant is, what was purchased and if it was purchased for legitimate reasons. After review and resolution the LAPC would update the User Message in the “Comments” field with the review details. 

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Querying User Messages

LAPC’s and APC’s can: Query All Messages for all

of their designated Cardholders.

OR Query Specific Messages.

•  

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View User Messages

Hit the “View Transaction” button to view transaction details

•  

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View User Messages

Review details on Transaction screen.

Return to User Message screen to close message.

•  

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Close User Messages

Change message status to “Read”.

Add Comments.

Be sure to save.

•  

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Practical Exercise

1. Query your user messages.

2. Select “USER 7”.

3. Read User Messages for “USER 7”.

4. View the transaction details.

5. Add comments to the user message.

6. Change the status from ‘Unread’ to ‘Read’.

7. Exit user message screen.

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Statistical Sampling

Complete form for audit purposes.

•  

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Summary & Review

1. You Receive a System Edit When Reconciling a Transaction:a. What is the Likely Cause of the Problem? b. What Steps Do You Need to Take to Resolve It?

2. How Does PSD Distribute System Information, Such As System Upgrades, to the Cardholders?

3. After Reading a User Message How Do You Ensure That It Does Not Show in the List Again?

4. Why will an LAPC receive a user message?

5. How Frequently Should You Check Your Messages?

6. What is the purpose of a Statistical Sample?

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Lesson 6 - Reporting

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Training Objectives

At the conclusion of this lesson, PCMS LAPC’s and APC’s will be able to: Generate a Cardholder Report based on date ranges.

68

Cardholder Reports

Reports menu is located on main PCMS window when logged on as a Cardholder

Generates the Cardholder Report

For a Cardholder: Report lists all transactions for a specific cardholder account

LAPC: Can not generate a report in PCMS they must use the Discoverer Tool to generate reports regarding transactions for all Cardholders assigned to the LAPC

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Generating a Report

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Date Range

Specifies the date range for the report.

Enter the date in the following format: DD-MMM-YYYY

For example November 1st 2002 would be entered as: 01-Nov-2002

Date format is not case sensitive.

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Report Example

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Report Fields

Field Name Description LocationPurchase Dt Purchase Date. The date the purchase was made Transactions

tabAC Action Code:

A = Approved Q = Questionable D = Disputed R = Resolved U = Unapproved

Transactions tab

Merchant Name

Name of the merchant from whom the purchase was made.

Transactions tab

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Report Fields

Field Name Description LocationCity Merchant City. City where the merchant is located Transactions

tabST State. Two character state code Transactions

tabAmount Transaction amount. The cost of the purchase Transactions

tab

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Report Fields

Field Name Description LocationAcctg ST Accounting Status:

O = Obligated P = Paid L = Locked N = New (Not Obligated or paid)R = Resolved U = Unapproved

It is not possible to reconcile transactions with a status L. To reconcile, you must wait until the status has changed.

Not available in the Card Transactions window.

Comments Comments entered by the Cardholder Transactions tab

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Report Fields

Field Name Description LocationDescription Description of the item purchased Transactions

tabDist Amount

The amount of this transaction being applied to a specific accounting code

Transaction Maintenance

BOCC Object Class. A code that defines the nature of the services or goods

Transaction Maintenance

Accounting Accounting Code. The accounting code against which this portion of the transaction is to be charged.

Transaction Maintenance

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Saving a Report The best format for saving a report is

HTML or TXT. Go to File > Save As In Save in box, navigate to the location

where you want to save the report. In File name box, enter a name for the

report. In Save as type box, click down arrow

to see choices. Select one of the following:

Web Page, HTML only (*.htm, *.html) Text File (*.txt)

Accept default listed in Encoding box. Click Save.

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Printing a Report

Reports print best when page orientation is set to Landscape.

Go to File > Page Setup Find the Orientation in the lower left

portion of the dialog box and select Landscape.

Click OK.

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Practical Exercise

1. Logged on as a Cardholder, generate a Cardholder Report.

2. The report range should be for the entire last month.

3. Save the report to an html file on your C:\ drive called “myreport.html”.

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Discoverer Reports

Discoverer can also be used to generate a “Cardholders Report”, and may be a lot quicker than using PCMS.

The Discoverer training reports are as follows:

1. Account Number/Cardholder Name Report

2. Un-reconciled Transactions

3. Convenience Check Usage.

4. Purchase Card Transactions Over $2500.00.

5. Unread PCMS User Messages.

6. Disputed Transactions.

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Summary and Review

1. What is the date format the report feature uses?

2. How do you generate a report that will display on the screen?

3. Why would a Cardholder generate a report?

4. Why would an LAPC generate a report?