Commercial Payments and Accounts
ARL Webinar: Open Payment Credits on Statement of Account (SOA)

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Date: Wednesday May 10 and 17, 2017
Time: 12:30 pm – 2:00 pm, Eastern Daylight Time
Meeting Number: 550 071 281

SOA Credit History Context

Introduction of Offsetting

Re-Introduction of credits on August 25, 2016

August 25 vs. August 26 SOA
August 25 Payment Credits Included August 26 Payment Credits Suppressed
Transactions: ($-329.18) Transactions: $2,434.12
Other Charges (due): $0.00 Other Charges (due): $0.00
Total Payable: ($-329.18) Total Payable: $2,434.12

Current State

Reasons Why Payment Credits Might Exist

Impacts on the SOA

Clearing Rules Overview

Generally speaking, payments will be applied against an account in the following order:

  1. Dishonored payment fees (NSFs) of $25 and other charges;
  2. Administrative K23 charges;
  3. Penalties (K9, LAP and NPA);
  4. Interest charges for overdue accounts; and
  5. All other transactions due during the month.
Debit - Broker A Debit - Broker B

Debit - Importer/Consultant/ G or I tagged

Credit - Broker A
Clears
Credit - Broker A
Does not clear
Credit - Broker A
Does not clear
Credit - Broker B
Does not clear
Credit - Broker B
Clears
Credit - Broker B
Does not clear
Credit - Importer/Consultant
Does not clear
Credit - Importer/Consultant
Does not clear
Credit - Importer/Consultant
Clears

Reconciliation Timeline

Accounts Receivable Ledger (ARL) Monthly Process
Day of Month ARL Activity
25 (Start of New Period 1) Statement of Account (SOA) is generated for previous period
31 SOA Payment is due for previous period (last day of the month)
16 Manual disbursements are processed
17 Large/inactive credit report is run
18 Auto disbursement job is run
19 Manual review of disbursement exception list
15 – 23 Clearing run for previous periods transactions, up to and including the last day of the previous month and must occur before all disbursement runs
24 (End of Period 1) Clearing run for all transactions up to and including the last day of the current period
25 (Start of new Period 2) Statement of Account (SOA) is generated for previous period
Credit documents reducing total payable remaining opening for multiple months
SOA Headings Pre May Logic Post May Logic
Month 1 – Opening Balance $0 ($5,000)
Month 1 – Transactions $3,000 $3,000
Month 1 – Other Transactions ($2,000) ($2,000)
Month 1 – Total Payable $1,000 ($4,000)
Payment ($1,000) $0
Month 2 – Opening Balance $0 ($4,000)
Month 2 – Transactions $4,000 $4,000
Month 2 – Other Transactions ($2,000) ($2,000)
Month 2 – Total Payable $2,000 ($2,000)
Credit documents offsetting month 1 and being disbursed in month 2
SOA Headings Pre May Logic Post May Logic
Month 1 – Opening Balance $0 ($5,000)
Month 1 – Transactions $3,000 $3,000
Month 1 – Other Transactions ($2,000) ($2,000)
Month 1 – Total Payable $1,000 ($4,000)
Payment ($1,000) $0
Disbursement $2,000 $2,000
Month 2 – Opening Balance $0 ($2,000)
Month 2 – Transactions $4,000 $4,000
Month 2 – Other Transactions $0 $0
Month 2 – Total Payable $2,000 $2,000
B2 payments not being reflected on SOA
SOA Headings Pre May Logic Post May Logic
B2 – Due May 26 $2,000 $2,000
Payment – May 24 ($2,000) ($2,000)
Opening Balance $0 ($2,000)
Transactions $4,000 $4,000
Other Transactions $2,000 $2,000
Total Payable $6,000 $4,000
Interim Payments not being reflected on SOA
SOA Headings Pre May Logic Post May Logic
Security $250,000 $250,000
Payment – May 15 ($250,000) ($250,000)
Opening Balance $0 ($250,000)
Transactions $500,000 $500,000
Other Transactions $0 $0
Total Payable $500,000 $250,000
Duplicate payments or overpayments not producing the correct total due – Broker SOA
SOA Headings Pre May Logic Post May Logic
Month 1 Broker SOA Total Payable $6,700 $6,700
Broker Payment ($6,700) ($6,700)
Importer Payment (for Broker Transactions) ($6,700) ($6,700)
Month 1 – Total Payable $1,000 ($4,000)
Month 2 – Opening Balance $0 ($6,700)
Month 2 – Transactions $10,000 $10,000
Month 2 – Other Transactions ($2,000) ($2,000)
Month 2 – Total Payable $8,000 $1,300

May 25th SOA Scenarios

Scenario 1 - Large Credit on Broker SOA for GST or IDS Importer

Scenario 2 - Large Credit balance on Broker SOA for a 'standard' importer

Scenario 3 - Large Credit Balance on Broker ASEC account

Contact Information

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