VERSION 3.1.1
The principle idea of the accounting system is to mirror the balance sheet values held within the edynamix Service Plan system with those held on the Dealer Management System (DMS) balance sheet. The values within the DMS can be held as consolidated totals if required, as any individual items can be extracted from the Service Plan System. All transactions created on the Service Plan System must be entered onto the DMS to keep the two systems reconciled; this should ideally be carried out on a daily basis. There is also a month end routine to deal with the customer collections. For each Dealer a sales ledger account should be created in the DMS for the relevant service departments to invoice to. This should be an internal account (no VAT), managed in the same way as a normal cash account. This account should not clear down, or post automatically to the balance sheet. This allows for the accounts department to validate that the correct values have been invoiced via the DMS within the Service Department.
Seven new nominal ledger codes are required in the DMS transaction list to control the service plan fund and manage the service plan transactions. These are: Consolidated Balance o This account is used when the Dealer requires all balances in the other accounts (excluding VAT) to be rolled into one. Only to be used if required by the Dealer. Monthly Customer Collections o This is where the money collected by edynamix should be posted (excluding VAT). These are the customer direct debit collections. Customer Deposits o When a customer pays for a plan in full, or makes a part payment when the plan is confirmed, the money should be posted here (excluding VAT, which will be shown as a separate value). Centre/Dealer Contributions o Any amount put towards a service plan by the Dealer should be posted here. Mostly used by Sales for promotional offers. Customer Refunds o When customer refunds are completed in the accounting panel the values will show here. Servicing Costs o Any work carried out by the Dealer to a vehicle with a live service plan should be posted here. VAT Control Account o All VAT posting should be posted here. This account needs to be zeroed down when you complete your VAT return (see VAT routine). Analysing each type of transaction individually allows for greater control and a better understanding of the fund should any value go out of balance. The aim is to always have matching values between the DMS balance sheet and those within the Service Plan system.
The accounting panel menu is separated in to 5 different sections/functions: Transaction List Customer Refund Balance Sheet Consolidation VAT Period End Complete Reconciliation The transaction list displays, by default, a list of all outstanding transactions that are created as a result of monthly customer collections, plan confirmation and cancellation, and routine service work carried out as part of a service plan. Figure 1: Transaction List (default screen) The Transaction List accounting panel (figure 1) lists all of the different transactions that are to be completed and posted to the same balance sheet codes in the DMS (see Setup). A number of filters exist in the Search tool bar so individual transactions, or multiple transactions of the same type and status, can be located. The results list can be exported to a spreadsheet by clicking the Microsoft Excel icon in the top left of the Balance Sheet Results list.
The monthly collections are automatically completed within the accounting panel when the money collected from the customer has cleared, on or around the 10 th of each month. The customer s service plan Available Funds will then be updated to reflect the cleared balance. Figure 2: Monthly Collections NB: Because some supplies may be VAT exempt, such as MOT s, the VAT percentage may not total the current VAT rates.
Customer deposits are split into two values, the net and VAT amount. These values should be posted to their respective nominal ledger accounts in the DMS. This should also add up to the amount of money taken from the customer see value in Ref. column, figure 3. These values can be for either part or full payment of a service plan. Figure 3: Customer Deposits NB: Because some supplies may be VAT exempt, such as MOT s, the VAT percentage may not total the current VAT rates.
Centre Contributions have no associated VAT transactions as they are treated as an internal transaction. An amount matching the centre contribution needs to be charged to the department, or vehicle, associated with the contribution, and that amount crediting to the relevant balance sheet nominal code in the DMS. Figure 4: Centre Contributions If the contribution is part of a New or Used Vehicle discount, a non-recoverable cost needs allocating to the relevant vehicle and the corresponding value crediting to the balance sheet nominal code previously set up. The line then needs completing in the accounting panel a memo of the account will be shown when the value is selected.
Service costs are entered into the balance sheet when service work is completed as part of a service plan within the edynamix system. This is completed within the Invoicing section by the service department, see Service Costing/Invoicing. Figure 5: Service Cost As a suggested process, check the service work has been invoiced at the correct value by checking the sales ledger account previously set up, see Setup. The invoices should have no VAT applied, as they should be invoiced as an internal transaction as the VAT has already been paid on the monthly collection. The invoice then needs allocating to the relevant balance sheet nominal code, see Setup, to pay it off the sales ledger. Then complete the transaction in the accounting panel, see Figure 5.
To mark an outstanding transaction as Complete: 1. Click the vehicle registration number in the Transaction List Results list, figure 1. 2. Mark the outstanding transaction(s) that is to be completed by selecting the check box beside it (it is possible to select and complete multiple transactions of the same type that are being posted to the same nominal code), see figure 6. 3. Press the Complete button. The transaction(s) will now be marked as Complete in the edynamix system and moved from the Outstanding Transactions list to the Completed Transactions list, see figure 6. Once completed the same transaction(s) need posting into the same nominal ledgers on the DMS if not already done so, using the ancillary details of the transaction, i.e. Reference, to keep both systems reconciled, see Reconciliation Report. Figure 6: Completing a transaction NB. If multiple transactions are selected that are to be posted to different nominal codes then the complete button will disappear.
Customer refund transactions can be created in one of two ways. 1. Where a customer has asked for a plan to be cancelled. 2. Where a plan has been automatically cancelled because Direct Debit instructions have been cancelled by the customer, for example. Figure 7: Customer Refunds NB. When completing a refund, make note of the Type as Centre Contributions are not always passed back to the customer. When a refund is completed, a statement of account can be printed out from the plan summary giving information about payments received, contributions made and services completed so that a credit note can be created on the DMS, and the monies refunded to the customer. If the automatic customer refunds facility, see Automatic Customer Refunds, is not enabled the relevant transaction(s) should be marked as complete, see Completing Transactions and figure 8. Figure 8: Customer Refund Transactions
NB. It s very important when setting up a refund in the DMS that the VAT is accounted for correctly as it s not always at the prevailing rate due to the possible inclusion of non-vatable supplies, e.g. MOT s. The Automatic Customer Refunds facility removes the need to manually complete any refund and associated VAT transaction on the balance sheet. The Service Plan system will send an automated letter to the customer when a plan is cancelled and a refund is due informing them of the value of the refund, the bank account into which the refund will be paid and the date on which they can expect to receive it. An explanation of the Automated Customer Refunds process is detailed below: 1. A Service Plan cancels 2. The system will work out if a. The plan was originally paid in full. If so, an automatic refund cannot be raised as the bank account details into which the refund is to be paid are not available. i. The refund will be added to the balance sheet for manual processing as normal ii. A note will be created against the plan: 1. An automatic customer refund was not raised because the plan was originally paid in full so there is no record of the customers bank account details. A manual customer refund entry was created on the balance sheet. b. There are positive available funds in the plan i. If not, a plan debtor will be created on the balance sheet ii. A note will be created against the plan: 1. An automatic customer refund was not raised because the fund value falls below the minimum qualifying value for an automatic customer refund. A manual customer refund entry was created on the balance sheet. c. Any available funds in the plan are greater or equal to the minimum automatic customer refund amount set in the parameters, default is 2.50 i. If not, the refund will be added to the balance sheet for manual processing as normal ii. A note will be created against the plan: 1. An automatic customer refund was not raised because the fund value falls below the minimum qualifying value for an automatic customer refund. A manual customer refund entry was created on the balance sheet. 3. The system will then work out the type of cancellation (manual or BACS) a. If the cancellation is a manual cancellation the system will check if the selected cancellation reason should result in an automatic refund and if the automatic refund letter should be sent. The following shows the default setup, those with a tick in Auto. Refund would result in an automatic refund being generated and those with tick in the Auto. Refund Letter would result in a letter being sent informing the customer of the refund
Cancellation Reason Refund? Auto. Refund? Auto. Refund Letter? Sold car Car written off Plan not required by customer Customer unhappy with service Plan revision by site Failed payments Bank Account Closed Customer Deceased Transferred to new plan NB. Those cancellation reasons with the Refund ticked but the Auto. Refund unticked would result in a refund being posted to the balance sheet to be actioned manually. i.e. Bank Account Closed where we can no longer automatically pay the money back. Account Closed, i.e. the bank account has been closed so we cannot refund the money automatically i. A note would be added to the Service Plan: 1. An automatic customer refund could not be raised as the bank account has been closed or there is no account. A manual customer refund entry was created on the balance sheet. b. If the refund is as a result of a BACS update, i.e. Failed Payments resulting in a plan cancellation, or cancelled DD, the system will check if the Dealer would like to send refunds for BACS updates. This is turned off by default. This again will result in a posting to the balance sheet which, should the Dealer wish, they can refund manually. i. If this facility is turned on, there are 3 instances where the system will not send a refund automatically. These are as a result of a BACS update for: 1. No Account, i.e. the bank details are incorrect a. A note would be added to the Service Plan: i. An automatic customer refund could not be raised as the bank account has been closed or there is no account. A manual customer refund entry was created on the balance sheet. 2. Account Closed, i.e. the bank account has been closed so we cannot refund the money automatically a. A note would be added to the Service Plan:
i. An automatic customer refund could not be raised as the bank account has been closed or there is no account. A manual customer refund entry was created on the balance sheet. 3. Customer Chargeback, i.e. the customer has requested any payments back directly from the customer a. A note would be added to the Service Plan: i. An automatic customer refund was not raised as the plan cancelled because of a customer chargeback. A manual customer refund entry was created on the balance sheet. ii. If the facility is turned on but the BACS update was as a result of Customer Deceased, the money will still be refunded automatically but a letter will not be sent 4. The auto refund will be logged with the customers current bank details ready for sending on the Wednesday of the week x number of days from the current date as specified in the Automatic Refund Days parameter for payment into the customers bank account on the Friday of that week. This allows for a period of time where the plan may be reinstated. For example: a. If the current date is Monday 1 st and the Auto Refund days is set to 7, the system will add 7 days to that date to take it to the following Monday 8 th and schedule payment for Wednesday 10 th ready for payment into the customers bank account on Friday 12 th b. If the current date is Thursday 4 th and the Auto Refund days is set to 7, the system will add 7 days to that date to take it to the following Thursday 11 th and schedule payment for Wednesday 17 th ready for payment into the customers bank account on Friday 19 th 5. An Auto. Customer Refund and associated VAT transaction will then be created on the balance sheet, but will not be available in the Accounts section to action because: a. The status will be set as Scheduled b. The posting status will be set as -1 6. Every Monday a Dealer Debits file is sent automatically for processing for all automatic refunds due to be sent to customers on the Wednesday of that week whereby edynamix collect this money directly from the Dealer to pass to the customer 7. Every Wednesday a Customer Credits file is sent automatically for processing for all automatic refunds due in which edynamix pay the money directly into the nominated bank account. At the same time: a. A summary email will be sent to the nominated dealer account email address where normal refund emails are sent, see figure 9. b. The balance sheet transaction status is changed from Scheduled to Complete. Posting status is left as -1 so still not visible on the balance sheet. c. The plan cannot now be reinstated as the monies have been sent to the customer 8. As the payments are collected each month from customers, any complete auto refund balance sheet transactions where the posting status is -1 are updated to 0 so they are then visible on the balance sheet when looking at a plan. The monies collected from the dealer and paid to the customer in that month are displayed at the bottom of the edynamix monthly statement, see figure 10.
Figure 9: Automatic Customer Refunds Weekly Summary Figure 10: Automatic Customer Refunds Monthly Summary
As a suggested process it is recommended that all auto-refunds are posted weekly onto the P/L account used for the monthly charges and invoices. These will remain as a payment on account until the monthly statement and money is transferred. They can then be reconciled together with monthly collections received. This will allow Dealers to continue as normal with bank account reconciliation with the DMS. To enable Automatic refunds, the required parameters are: Cancellation reasons that result in an automatic refund being generated and a letter being sent BACS update automatic refunds Automatic refund days Minimum refund amount
Balance sheet consolidation is used to consolidate all of the balances in the other accounts (excluding VAT) into one. This is not a system requirement but can be done for housekeeping to remove large balances from the balance sheet. Figure 11: Balance Sheet Consolidation Each centre/dealership can be selected individually or altogether by selecting All Centres. Choose the Month and Year to run the consolidation routine up to, then press Run. NB. It s very important to make sure all account balances reconcile to the DMS before running the routine. Once complete the page will refresh and the Value Before, Value After and Difference will be shown, see figure 12. Figure 12: Balance Sheet Consolidation Run
The VAT period should be completed in line with the Dealers normal VAT periods by selecting the Month and Year to run the routine up to, then pressing Next, see figure 13. Figure 13: VAT Period End The values shown on the left in figure 14 show the current value of the edynamix VAT control account, including any values from the current period. The values on the right show the VAT values due to the end of the selected period. VATable supplies all supplies that VAT is to be paid upon VAT VAT due for the period selected on the VATable supplies Non-VATable Supplies supplies that are non-vatable (e.g. MOT s) Figure 14: VAT Period End Export NB. It is very important to ensure all account balances reconcile to the DMS before running the routine.
Pressing the Export button will export all values for the VAT Period End to a spread sheet. The VAT Period End can then be run by clicking the Run button, see figure 15. The VAT period status is highlighted on the daily reconciliation report, see figure 16. Figure 15: VAT Period End Run Figure 16: VAT Period Status
Complete reconciliation allows for an export of all service plans and their current Available Funds, by clicking the Microsoft Excel icon. The values in the system are grouped by registration and represent total value available within the plan. Figure 17: Complete Reconciliation
When a service is invoiced as part of a Service Plan in the DMS it should also be completed within the Service Plan system. Locate and open the plan from the Open Quotes screen or enter the customer name or vehicle registration in the Quick Search box. Once on the Plan Summary screen click the Invoicing tab to view those services now available to complete, see figure 18. Figure 18: Invoicing Screen The screen is split into 2 sections, Due Services and Service Schedule. Any service(s) due within the set period, in this case 30 days, are shown in blue and available to invoice, with any overdue services shown in red. The Service Schedule shows all services included on the Service Plan, with any already complete displayed in green. A statement of work carried out can be printed by selecting the check boxes against any completed work and pressing Print Statement.
The example reconciliation report below, figure 19, shows the Posted Value within the edynamix system for comparison to the same nominal ledgers within the DMS. It may be possible to extract the values automatically from your DMS and include these on the report. For more information on this feature please contact your edynamix Business Development Manager. Figure 19: Daily Reconciliation Report NB: If we do have access to the Dealers DMS system then the DMS Value column will not be shown. This report can be emailed daily to the designated accounts email group set up in the system.
Figure 20 shows the reconciliation report when out of balance due to customer monthly collections, automatic customer refunds and the associated VAT. Once these values are posted in conjunction with the month end statement and invoice, the values will come back inline. Figure 20: Out of Balance Reconciliation Report NB: values in blue represent transactions over 14 days old on the edynamix balance sheet and should only be outstanding customer refunds waiting to be actioned.
1. Why do I need 7 Nominal Ledger codes? Analysing each type of transaction individually allows for greater control and a better understanding of the fund should any value go out of balance. The aim is to have the DMS balance sheet values always match those of the Service Plan System. 2. How often should I use the accounts system? It is recommended that outstanding transactions are completed on a daily basis. 3. How do I complete the outstanding transactions and make sure they match with those in the DMS? See the Accounting Panel section in the manual. 4. How long will it take me to complete the outstanding transactions? This depends on the number of transactions posted the previous day, but to post the values into your DMS system and complete the same transactions within the accounts system should take no longer than a few minutes each morning. 5. Why should an advisor invoice a service within the DMS net of VAT? The invoices should have no VAT applied as they should be invoiced as an internal transaction with VAT already paid on the monthly collection. 6. What happens if an advisor doesn t invoice a completed service in edynamix? If a service is complete but isn t updated in edynamix the available funds will be incorrect as the service won t have been debited from them. If the transactions are posted to the service costing nominal ledger in the DMS then the reconciliation report will go out of balance the following day. Finally, the service will show on the Overdue Services report once the current date is 30 days passed the service due date set in the system. 7. How do I account for a customer deposit? Customer deposits may be taken for full or part payment of a service plan at point of sale. The money taken from the customer should be posted to the Cash on Account sales ledger. 2 transactions for the net and VAT values will be posted automatically to the edynamix transactions list, see Customer Deposits in the Transaction Types section in the manual. The values held on the DMS in the Cash on Account sales ledger can then be journaled to the relevant nominal ledger on the balance sheet and completed as the edynamix transactions are marked as complete to ensure the systems continue to reconcile.
8. Does the accounts system integrate with my DMS and, if so, what does this give me? The system can interrogate some DMS systems, including ADP, V8, Gemini and Navigator where required. The integration will allow for greater visibility on reconciliation between the Service Plan system and the DMS as discussed in the Reconciliation Report section of the manual. 9. What if the system is not integrated with my DMS? This won t impact the system in any way, it just means that daily reconciliation between the 2 systems will be a manual process. 10. Who do I contact if I need support? There is a support ticket facility available within the system. Alternatively, an email can be sent to support@edynamix.com