Various Links on this Web Site:
ABOUT US | OUR PURPOSE | TABLE OF CONTENTS | SEARCH MATTERS | HELP DETAILS | FUND ACCTG VIA COMPUTERS | GLOSSARY
FROM: JRB or Jim
Bramer, Retired Auditor-CPA
RE: Web Computer eSchar System Originated: May 2000.
Most Christian School administrators can identify with the advantages of retaining an outside organization to help them collect what is owed to them for Tuition and Fees. Why? Because this non-school agent is a 'go between' who deals directly with those who are late in making their required monthly payment to the School and the School does not appear to the the 'bad guy.' Please go to 7013 for a list of organizations that provide such a service. I also understand that some of you have effectively used the resources at http://www.huntersystems.com/ for applicable eSchar matters. To remind you, Schar stands for Sch>ool a>ccounts r>eceivable.
Please see Partner Two below -- who collects money that is owed to the Christian School identified as Partner One.
A major feature of a Web Computer eSchar system is that all of the Partners efficiently use the same eSchar set of records, although for different purposes. Web based Internet resources known as ASP (Application Service Providers) are becoming available. Under such a system, all of the Partners virtually function as if they were using the same software system, and content, via their own computer network.
The School could have a separate QB eSchar Company with info therefrom being integrated at least monthly into the School's General Ledger, as indicated further down in this publication. There is one set of QB eSchar records, but usable by all Partners for their unique purposes. Please access 0801 and view information about Quickbooks (QB) on the Web, or QBOE via the Web resources.
Perceived Schar Issues and/or Needs:
A> School needs to collect all of their billed Tuition/Fees. They want to incur 'zero' bad debts.
B> School needs Tuition and Fee Income when due -- so they can pay their bills on a timely basis.
C> The Outsource Service does all of the collecting and duns/collects what is overdue.
D> When the Parent owes the School money for any and all reasons (not just monthly Tuition, etc), all receipts from that Parent are in one place within the School's accounting records.
E> The School is NOT structured to loan Parents money. A "Loan to a Parent" is defined as "money owed by the Parent to the School beyond the Late Charge date ..... usually 10 days after monthly due date."
How about the following - - -
The eSchar System
Via the Internet, the entities below would have secure full access to the same set of School Accounts Receivable (Schar) financial records -- hereafter referred to as eSchar. See details below about a Proposed Partnership.
Partner One - - - The School
This Partner is responsible for doing the Schar billing and for the correctness of all unpaid monies owed to the School per the eSchar system. Billing issues include the following:
1> Monthly Tuition (the monthly due dates vary) charges under the chosen plan by the Parent; Class and/or Event fees; Before and After School hourly/weekly fees, etc.; Summer Time Activity fees and/or charges; and, of course, the agreed Late Fees --- usually accessed, if unpaid, 10 days after the monthly due date.
2> In most of the above cases, the School will render periodic invoices plus an 'as needed' Late Charge Monthly statement. We encourage the School to obtain Parent's Email address at time of registration and utilize for these purposes.
3> The School has ultimate responsibility for the accuracy of the daily unpaid aging, or Schar-Age report.
4> Provide a substantial discount for Parents to prepay for the Semester or School year. In so doing, there would be a separate "Schar Prepaid" control account that does not involve Partner Two, etc.
5> At the time of registration the Parent receives financial incentives, at the agreed time, to:
Per 7006, use the Draft, or post-dated check, monthly payment method
Allow the School to automatically monthly charge their Credit Card
Allow the School to automatically monthly write a check equivalent (EFT) against their bank account. Or use Debit Card features of the Credit Card system.
Send their unpaid Schar monthly balance payment directly to the School's Bank account at the Bank. Use of coupon book, etc.
6> If Parents prefers to pay at the School, the School assumes the responsibility of posting such payments to the eSchar records and making the deposit to their Bank.
7> Maintain the appropriate General Ledger and/or Schar Tuition/Fee Reporting system and Schar subsidiary.
Partner Two - - - The Outsource Service
This Partner is responsible for at least the following:
References the eSchar Online system so it can --
Do the dunning, collecting - which includes providing copies my email of interaction with Parents.
Please go to 7013 for a list of organizations that provide such a service. The School needs a reliable and credible 'buffer' ---- or a Non-School entity who deals with the Parent who does NOT make payments to the School as agreed. Why? Being the Schar debt collection "bad guy" contradicts other aspects of the Ministry; see Irish story
Timely process Drafts, charge Credit Card or process EFTs. Remember, such arrangements were made at the time of registration and is for the total unpaid Schar account balance --- not Tuition only, etc.
Partner Three - - - The Financial Institution
The applicable financial institution, like ECCU, provides Online process payment made by Parents who make checks payable to the Bank and send their money directly to the School's Sweep arranged Bank system. Please go to 0006 about a Sweep system at the School.
At the understood agreed time, this Partner automatically loans money to the Late Parent, deposits the amount in the School's Bank Account and zeros out the eSchar account balance accordingly. As agreed to at the time of registration, the Late Parent, under these circumstances, now owes the Financial Institution--- and the School has it's needed money.
Email us at Jim@bcidot.org about the prospect of Bank provide loans for prepaying the Tuition and for a Parent monthly Schar Line of Credit (LOC) arrangement.
Partner Four - Applicable outside consultants.
During the Month:
Throughout the month the School would access the eSchar System and extract direct deposit information. Then post individual deposit info to your Bank account and offset to a "eSchar Clearing Account." Let's suppose the total collected for the month was $23,409.78.
At least Monthly
The School produces a detailed transaction report from the proposed eSchar set of books that includes some proof processes. See below for the sample Journal Entry.
eSchar Clearing Account
Schar Receivable (Monthly Charges)
Schar Receivable (Rec on Acct)
Pre-Post School Fees
XYZ Trip Costs
Late Charge Income etc
Misc. Fee Income
This would be a memorized monthly QB Journal entry that integrates eSchar information into the main set of QBooks. The ending "Schar Receivable" asset balance in this set of books MUST, of course, agree with the eSchar's set of Books. This unpaid balance often shows how late the Payors are.
Registration and the Post-Dating Tuition Process
As you know, the Tuition payment understanding happens at the time of registration.
We advocate that, at the time of registration, the School goes to the eSchar set of QBooks and inputs all monthly Tuition info (by post-dating entries) into each Parent's eSchar account. Please go to 7617 for more information.
A print out from this source could provide the Parent with the Tuition due dollars within this special QB Registration agreement Statement. Since the entire year's Tuition entries (post dated) has already been posted at the time of registration, there is no need to post these Tuition charges during the school year.
Please let us know your thinking at Jim@bcidot.org as we join you in being eager for the complete utilization and effectiveness of a eSchar Partnership like this. An example of using these type of resources is found at www.renweb.com. This paragraph within a 2010 JIMs JRNL about a dialog about a Contemporary SCHAR system might also be of interest.
Please click here for additional "schar" resources within this web site. The bulk of this Publication originated in May 2000 and was. UPTD: March 09, 2012