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 GST), 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 GST) 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 GST). 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 GST, 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.

GST – Control Account

o All GST posting should be posted here. This account needs to be zeroed down when you

complete your GST return (see GST 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

GST 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 10th 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 GST exempt, the GST percentage may not total the current GST rates.

Customer deposits are split into two values, the net and GST 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 GST exempt, the GST percentage may not total the current GST rates.

Centre Contributions have no associated GST 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 GST

applied, as they should be invoiced as an internal transaction as the GST 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 GST is accounted for correctly as it’s

not always at the prevailing rate due to the possible inclusion of non-GSTable supplies.

The Automatic Customer Refunds facility removes the need to manually complete any refund

and associated GST 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 NAB) 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 NAB 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 NAB 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 NAB 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 NAB 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 1st 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 8th and schedule payment for Wednesday 10th ready for payment into the customers bank account on Friday 12th

b. If the current date is Thursday 4th 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 11th and schedule payment for Wednesday 17th ready for payment into the customers bank account on Friday 19th

5. An Auto. Customer Refund and associated GST 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

NAB 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 GST) 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 GST period should be completed in line with the Dealers normal GST periods by selecting the

Month and Year to run the routine up to, then pressing Next, see figure 13.

Figure 13: GST Period End

The values shown on the left in figure 14 show the current value of the eDynamix GST control

account, including any values from the current period. The values on the right show the GST

values due to the end of the selected period.

GSTable supplies – all supplies that GST is to be paid upon

GST – GST due for the period selected on the GSTable supplies

Non-GSTable Supplies – supplies that are non-GSTable

Figure 14: GST 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 GST Period End to a spread sheet. The

GST Period End can then be run by clicking the Run button, see figure 15.

Figure 15: GST Period End Run

The GST period status is highlighted on the daily reconciliation report, see figure 16.

Figure 16: GST 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 GST. 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 GST?

The invoices should have no GST applied as they should be invoiced as an internal

transaction with GST 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 GST 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