04-a-013 - Electronic Checks (February 27, 2004) (Supplements 01-a-014)
|INFORMATIONAL CIRCULAR NO. 04-A-013||(Supplements 01-a-014)|
|DATE:||February 27, 2004|
|A & R CONTACT:||Randy Kennedy||(785) 296-2125||(firstname.lastname@example.org)|
|Jo Ann Remp||(785) 296-2277||(email@example.com)|
|SUMMARY:||Electronic Checks (E-Checks) Processing Similar to Credit Card Acceptance Program|
Informational Circular 01-A-014 dated February 23, 2001 provided information and procedures recommended for the Credit Card Acceptance Program. These procedures will remain the same.
The procedure for processing credit card transactions through the STARS system required the creation of a Credit Card Clearing Fund in some agencies. This clearing fund should also be used for the electronic checks (E-Checks) and the fund will be in the 9XXX series of fund numbers. The fund would only be used for processing credit card transactions and E-Checks and would work as follows:
- As often as daily, the State Treasurer will process an electronic receipt voucher to deposit revenue from credit card transactions and E-Checks to the Clearing Fund.
The transaction will remain the same for the credit card receipts and use a transaction code (T/C) 606 (Due to other funds and appropriations) and revenue sub-object 6700 (Suspense). The E-Checks receipts should use the same transaction code 606 and the new revenue sub-object code 6703 (Suspense for E-Checks) which has been established to differentiate between the credit card receipts and the E-Checks. The additional revenue sub-object code will be reflected in the Uniform Receipt Classification of Revenue Sub-object Codes filing (PPM No. 6,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/.
- Each agency will be responsible for reconciling the deposits and processing a SOKI journal voucher (select "E-Checks" as the document type) to transfer these receipts out of the Clearing Fund to the proper budgetary fund(s) within the agency.
- When the agency receives only the revenue net of fees: The journal voucher will use T/C 606R and revenue sub-object 6700 for credit card receipts and 6703 for E-Checks to move the corresponding receipts out of the clearing fund. The other entry will use T/C 602 (fund level deposits) or T/C 604 (account level deposits) with the applicable revenue sub-object (example - 2110), to deposit the credit card receipts into the correct fund of the agency. The gross amount of the fee (revenue) being collected (example - 2110) should be recorded. In some cases if the fee charged for the electronic check is netted against the receipts, an additional transaction that posts to expenditures, T/C 603R, and expenditure sub-object code 2696 (see Step C) will need to be used to post these E-Check fees.
- When the agency receives the gross amount of the fees (revenue) collected and pays fees as a separate transaction: At least once each month the Treasurer debits the Clearing Fund to charge each agency the credit card fees using expenditure sub-object code 2691 (Credit Card Fees and Charges). It will be the agency's responsibility to handle the E-Check fees. A new expenditure sub-object code has been established to record the E-Check fees which is expenditure sub-object code 2696 (E-Checks Fees and Charges). The gross amount of the receipt collected should be recorded in the STARS system along with the fee charged the agency. The additional expenditure sub-object code will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM No. 7,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/. SOKI help will also be updated to reflect proper usage of these codes.