Write-Off AR (60.1.3)
  • 23 Apr 2024
  • 9 Minutes to read
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Write-Off AR (60.1.3)

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Article summary

Business Process Overview

Florida PALM also provides approval workflow for write-offs and manual online entry to create or update receivables. The customer account is updated to reflect outstanding items and payments received.

Business Process Diagram

Business Process Diagram for 60.1.3 Write-Off AR

Business Roles

The Business Process Flow Diagrams use horizontal swim lanes to depict where activities are performed by different parties or systems. Each swim lane is titled with a role, either agency-based or within DFS, and in some cases, are representative of an external entity or system. The swim lanes may change from page to page within a single business subprocess as more or fewer roles are required to execute sections of the business subprocess. 

Business Process Flows Details

The tables below describe steps in each business subprocess as reflected on the Business Process Flow Diagrams. The tables also reflect information associated with each step describing the intent of the specific process. Florida PALM screenshots are included within the sections to allow connections to be made from specific business subprocess steps to screens within Florida PALM. This information should be read in conjunction with the Business Process Flow Diagrams.

Process Step ID

Process Step Title

Description of Process

1

Analyze Customer Accounts

The Agency AR Item Processor analyzes and reconciles customer accounts to determine if an outstanding balance needs to be written off (e.g., statute of limitations, bankruptcy, or deceased).


2

Create Maintenance Worksheet

If the analysis requires a write-off, the Agency AR Item Processor creates and submits a Maintenance Worksheet with the receivable selected to write-off. The worksheet is routed through the approval workflow to the Agency AR Write-Off Approver.


Below provides the Worksheet Application Page where a write-off is applied.


3

Agency Write-Off Approval (ARW007)

The Write-Off approvers use the AR Write-Off Approval link in the WorkCenter to review any write-off pending their approval.


If the write-off is Denied or more information is requested by the Agency AR Write-Off Approver, the ARW007 Maintenance Write-Off Worksheet Workflow routes the transaction back to the Agency AR Item Processor to provide updates or more information.


If transactional updates are completed, the transactions will be routed back through all applicable Approvers.


If the transaction is Denied and the Agency AR Processor does not make updates, the agency will follow the 60.1.4 AR Period Close business process to close out the transaction.


If the write-off is Approved by the Agency AR Write-Off Approver, the transaction lifecycle proceeds to the DFS AR Write-Off Approver.


4

DFS Write-Off Approval (ARW007)

The Write-Off approvers use the AR Write-Off Approval link in the WorkCenter to review any write-off pending their approval.


The DFS AR Write-Off Approver can Pushback the Write-Off through the ARW007 Maintenance Write-Off Worksheet Workflow and the transaction will route back to the Agency AR Write-Off Approver to provide more information.


If Request Information is used through the ARW007 Maintenance Write-Off Worksheet Workflow by the DFS AR Write-Off Approver, the transactions are placed on hold for the Agency AR Item Processor to provide more information before the approval process can move forward.


If the write-off is Denied through the ARW007 Maintenance Write-Off Worksheet Workflow by the DFS AR Write-Off Approver, the transaction routes back to the Agency AR Item Processor for updates.


If transactional updates are completed, the transactions will be routed back through all applicable Approvers.


If the write-off is Approved by the DFS AR Write-Off Approver, the transaction lifecycle proceeds.


5

Set Worksheet to Post

Write-off must be approved to go through the system jobs (e.g., Edit Check, Budget Check, and post to the Ledgers).


Once approved, the Agency AR Item Processor sets the Maintenance Worksheet to post by selecting Batch Standard on the page. This step is required for the Receivables Update to process the write-off transaction and continue the lifecycle.


Below provides the Worksheet Action Page where a write-off is set to post by selecting Batch Standard.


6

Run Edit Check

Edit Check process will run at the designated interval. Edit Check process will validate that ChartField values are active, validate Combination Edit rules applicable to the transaction (i.e., does transaction reflect an accurate Budget Entity to State Program correlation), and validate the Accounting Period is open.


7

Resolve Edit Errors

Edit errors must be resolved prior to the transaction proceeding. The Agency AR Item Processor should confirm the validity of the ChartField values and the ChartField String used on the transaction and make necessary updates. Agency AR Item Processor should confirm that date of transaction falls within an open period.


If error persists after making updates, and a SpeedKey is being used, Agency AR Item Processor should consult with Agency COA Maintainer to determine if SpeedKey was established inaccurately.


8

Run Budget Check

Budget Check process will run at the designated interval to decrease the recognized revenue balance. Revenue Budget check is set to systematically pass when an AR Write-Off Account value is present on a transaction.


Once the Budget Check process is complete, customer balances are updated in the AR module.


9

Update Ledger Balances

Upon passing the budget check, the revenue ledger will be updated in the Commitment Control module.


Please see 20.2 Budget Execution and Management for more information.


10

Generate GL Journals

Journal Generator (JGEN) processes posted accounting entry data from the Florida PALM source modules, summarizes the data, and creates journals in the General Ledger. The Journal Generator process will edit, Budget Check, and post the journal entries created during the process. Please see 10.2 Enter and Process Journals for more information on source module journal entries.

Worksheet Application Page

Worksheet Application Page

Worksheet Action Page

Worksheet Action Page

Demo Video

Create Maintenance Worksheet Demo Video: Click the image below to view a demonstration video on creating a Maintenance Worksheet. 

Accounting Events

Accounting events originate during transaction processing in the applicable source module. The accounting events impact the source module, Commitment Control ledgers, and the General ledger (Actuals).

  • Source Module accounting entries require user input (I) of the primary line (i.e., expenditure, revenues) with an automated (A) system offsetting line (i.e., payable, receivable) during transaction entry. The source model transaction must pass Edit Check, Budget Check, and Cash Check (on applicable entries) prior to posting the transaction.
  • The Run Budget Check (Commitment Control) process automatically affects balances in the appropriate budget ledger (i.e., appropriation, spendable cash) if the transaction passes the budget check process.
  • After the transaction is posted in the source module, an automated system process summarizes and posts the entries in the General Ledger module to the Actuals Ledger.

The table below provides the most common accounting events applicable to this business process.

Acct Event ID 

Accounting Event

Commitment Control Ledger(s) Impact

Source Module Accounting Entry

General Ledger (Actuals) Entry

AR07

AR Write-Off

Debit: Write-Off Expense Account (S)

Credit: AR (S)

Decreases Recognized Revenue Balance

Debit: Write-Off Expense Account

Credit: AR

Reports

Key Reports are displayed as icons with the Report Number on this Business Process. The table below provides the reports identified to be produced at a particular process step or is used to support the completion of a process step.

Report Number

Report RICEFW ID

Report Description

Report Source

Report Frequency

Audience

R1

ARR025

AR Data Report – A report that provides AR data including pending items and items to agencies for analysis purposes.

PeopleSoft

Periodic

Agencies

R2

KKR023

Revenue Report – A report that provides revenue estimates, revenue recognized, and revenue collected by Fund, Budget Entity, Category, and account code by ChartField combinations.

PeopleSoft

Periodic

Agency, DFS

Note: A complete list of reports may be found in the Reports Catalog.

Interfaces

The table below provides the Interfaces identified on the Business Process.

Interface Number

Interface Description

Interface Frequency

Source

Target

N/A



Note: A complete list of interfaces may be found in the Interface Catalog.

Forms

The table below provides the forms identified on this Business Process.

Form Number

Form Description

Audience

N/A



Workflows

The table below provides the workflows identified on this Business Process.

Workflow Number

Workflow Description

Audience

ARW007

Maintenance Write-Off Worksheet Workflow - Workflow that routes AR maintenance write-off items for approval within or between organizations and DFS.

Agency and A&A

Version History

Date

Revision Description

02/01/2024

Original Version

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