7.0 - Credit Card Fee Distribution

SUBJECT:

Credit Card Fee Distribution

SOURCE:

Non Student Accounts Receivable, Financial Management Services

ORIGINAL DATE

OF ISSUE:

September 2016

DATE OF

LAST REVISION:

May 2018

AROP NO:

7.0

RATIONALE:

Document the process of distributing credit card fees to the various billing organizations. 

ARSOP:

Customers have the option to pay invoices by credit card online at: https://controller.iu.edu/services/customers/invoice-payment

These payments are processed by Treasury and funds are deposited into the AR Clearing account (6812950), object code 1599. At month end, a report is run in IUIE to determine what has been paid and this report is reconciled with the Vantiv statement.

A transaction fee is assessed on each credit card transaction by the bank. These fees are processed by Treasury and post to the AR Clearing account, object code 4006 (Credit Card Processing Fee). The charges must then be allocated to each billing organization via a Distribution Of Income And Expense (DI) document to the accounts on the invoices being paid by the credit card based on a percentage of the total. 

Reconcile Charges:

Non Student Accounts Receivable will obtain GL entries to reconcile cc fees in Kuali Financial System (KFS) (Visa, MC, Discover…AMEX is separate GL entry) to the Vantiv statement. Go to FINANCIAL PROCESSING on the left side of the KFS Dashboard. Click on General Ledger Balance.

· Enter:

a. Fiscal Year

b. Chart Code = UA

c. Account Number= 6812950

d. Object Code = 4006

e. Consolidation Option = Consolidation

f. Amount View Option = Accumulate

g. “Search”

· Click on Balance Amount to show monthly detail.

· CC Processing Fees posted to UA-AR Clearing Account that need to be distributed to Billing Organization accounts.

· In order to ensure all entries are accounted for, compare the transaction ledger entry amount to the Vantiv Statement. [See ARSOP 13.0 on how to get Vantiv Statement]

Allocate the fees for each credit card transaction based on the percentage of the total:

· Copy 1599 All spreadsheet from your "G" drive at Accounts Receivable -> PAYMENTS -> CREDIT CARD PMTS & PCI COMPLIANCE -> FYXX/CC Fee Distribution FYXX – Monthly Recon & Dist into new spreadsheet labeled [Month Year Dist].

· Sort by Account number; Check for any account numbers where the zero was dropped and change cell to text using “format cell” function and add back zero

· Add “FEE” column after INVOICE # column

· Move AMEX transactions to bottom

· Calculate the fee (see box below)

· Sub-total by account

· Create a Distribution of Income/Expense (DI) document to distribute the charges to each account number. 

Distribution of Income/Expense document:

In the KFS Dashboard, go to FINANCIAL PROCESSING. Click on Distribution Of Income And Expense.

· In the Document Overview tab, add description as “[Month] [Year] CC Fee Dist”. Add Explanation to include fee rates for the month for Visa/MC/Disc and Amex (see box below).

· Accounting lines “From” = account 6812950, object code 4006.

· Amount = Total Amount of fees to distribute

[NOTE: Do NOT use any 96 (Tax) account to distribute fees]

· Accounting Lines “To” = the various accounts, object code 4006 (Credit Card Processing Fee) except for BL. For BL, use 4512 (Credit Card Processing Fee). Add Sub-Account when applicable.

· Save and Submit (Blanket Approve)

DEFINITIONS:

IUPayPlus: a web-based payment card processing system that is available to IU departments that have been approved via the “Revenue Producing Activity Committee”, per policy VI-121.

CROSS

REFERENCES:

Policy FIN-TRE-VI-110: Accepting Electronic Payments

Policy FIN-TRE-VI-121: Establishing and Modifying Revenue Producing Activities (RPA)

RESPONSIBLE

ORGANIZATION:

Financial Management Services Non Student Accounts Receivable