Cycle Close Tasks Due to the competitive nature

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2 Agenda Lesson 1: CAR Cycle Close Overview Billing Cycle Administrator Cycle Tasks Lesson 2: Assure Quality of Data Transactions with Site Defaults Revalidate Transactions Lesson 3: Produce Interface File Generic IFB Run Manager Scheduler Lesson 4: Post Extract Tasks Compare to Billing Statement Unlock Data Allow Approvals Posting Extract Data

3 Business Objective Enable the Program Administrator(s) to: § Manage all aspects of month end close including statement balance verification, accounting revalidation, interface extract functions, locking and posting of transactions to American Express @ Work reporting § Successfully load all transactions into Account Payables system

4 Lesson 1: CAR Cycle Close Overview Objective: By the end of this lesson, the PA should understand the overall tasks and frequency of those tasks that are associated with the close of their cycle. Why Is This Important: It is important to know what tasks to perform to ensure data integrity and accurate posting to the client’s financial system.

5 Lesson 1: CAR Cycle Close Overview §Billing Cycle Close is Important Ø Certain tasks need to be completed every month at cycle close as outlined below Ø Cycle marked as “closed” automatically (once the first file is received for the new cycle) – approximately 3 days after cycle cut Ø Optional email notifications triggered §User Tasks Ø Cardmembers must review and reallocate pending transactions Ø Cardmembers and/or Managers should complete approvals §Administrator Ø Assure quality of data Ø Create & post Interface files Ø Mark data as posted

6 Lesson 1: CAR Cycle Close Overview – Billing Cycle / CAR Reconciliation CAR ADMIN Daily AP Create interface extract file & match to bill ADMIN Run “CAR Revalidate Cycle” task Lock Data Transactions End Users Review / Reconcile Approve Transactions End Users obtain statement from MYCA & export data from CAR (Send to AP *Optional) Billing Cycle Closes Data Mapping using site rules AP Post Data in CAR Summary Data CAR Customized Reporting via @ Work Reporting REPORTING: Accounting/Purchasing Cost Center Managers Tax/Audit AP Post interface extract file to financial system AP Pay American Express This diagram demonstrates at a high level the process by which CAR transactions are reconciled and posted to a financial system at cycle close. • Administrative tasks are presented on the right side of the “Billing Cycle Closes”. • End user tasks are presented on the left side of the “Billing Cycle Closes”.

7 Lesson 1: CAR Cycle Close Overview – System Administrator Cycle Tasks CATEGORY TASK FREQUENCY Data Quality Check for Transactions hitting Site Defaults 2 -3 days after cycle close Re-validate Transactions Prior to producing interface file Produce AP/GL interface extract file 5 -7 days after cycle cut Unlock data for approvals or changes Only if required Post to financial system Same day as creating file Mark Cycle as Posted Upon successful posting Financial Posting §This is a checklist of assorted System Administration maintenance categorized by type of activity. §In advance of the cycle (or permanently) the System Admin may want to set up a Broadcast Message or Email Notification template to alert users to the cycle close to be sent just prior to the cycle close and after the cycle closes. The System Admin may also want to set up an email to notify approvers that transactions have NOT been approved. §After all of the reconciliation activity has completed, the System Admin must make sure that no accounting string is hitting any site defaults if the site defaults are not post-able. The System Admin should also check to see if any previously mapped or reallocated accounting information is now invalid. §The System Admin must produce the interface extract file, either using the generic or IFB run manager tasks. §Upon successful upload to the company’s financial system, the System Admin should mark the activity as posted.

8 Lesson 2: Assure Quality of Data Objective: By the end of this lesson the PA should be able to identify Site Defaults and how to use the search feature to identify those defaults. The PA will also know how to run a revalidation file to identify accounting elements that are no longer valid. Why Is This Important: It is important to know how to perform these tasks in order to alleviate the need for rework/journal entries after the output file has been run.

9 Lesson 2: Assure Quality of Data Ø Site Defaults Site defaults must be assigned to all of your company’s required accounting elements. These site defaults are only used as a last resort when applying the CAR mapping logic. As reviewed in the Site Maintenance session, the string is typically built based on data capture by the vendor and then by associating certain accounting elements to the vendor record, vendor’s industry code, and the card itself. Ø Site Defaults may or may not post depending on configuration Your site may have been configured to use non-posting “fake” values as site defaults such as all nines or zeroes. Or perhaps you have chosen suspense accounts as site defaults indicating that you would prefer actually not to derive if at all possible because it will cause you to create journal entries later.

10 Lesson 2: Transactions with Site Defaults There are two methods to use to identify accounting elements 1. Search CAR for default element values Ø Use BCA Manager or Accounting Manager roles only Ø Create saved searches 2. Accounting Manager Role view Ø Add to User Profile Ø Identify Site Default for Accounting element(s) assigned to role

11 Lesson 2: Site Defaults 2. Click on Acct Flds” / Definition Tab 3. Site defaults listed for each accounting element 1. Choose a Site in Site Maintenance Step Action 1 The first thing to look at is what values are currently being used as site defaults. Click Site Maintenance and select a site. 2 Click Acct Flds then Definition tab. 3 Check to see which elements have site defaults and determine whether these values will or will not post. The elements with values that will not post are the ones you want to search for in the End User view at the end of each cycle.

12 Lesson 2: Site Defaults – Search for Transactions – BCA Manager 2. Create and save searches for each element using a site default 3. Results will be displayed after clicking “Search” Step Action 1 To find transactions hitting the site default values, first log into the CAR Tool as an End User. Note: BCA Manager Role is usually the best to use since it spans multiple card data. 2 Click on the magnifying glass to begin a search on the site default accounting elements. Note: Select Save to use the same search in the future. 3 Click Search. Any transactions for the current selected cycle that meet the criteria will be displayed. The transactions will now need to be reallocated. Suggestion: Identify and notify the appropriate Cardmembers and/or managers.

13 Lesson 2: Site Defaults – Accounting Manager View 1. Change to Accounting Manager Role 2. Highlight Default Accounting Element Value 4. Click Card Data to access transactions 3. If there is any count, there are transactions hitting defaults Step Action 1 Change role to Accounting Manager - By assigning the accounting element and matching site default value to the Accounting Manager role, the user will automatically see all of the transactions on the Card Data tab. 2 Highlight Default Accounting Element Value - As items are reallocated the transaction will be removed from the Accounting Manager role view. 3 The count will reflect the number of transactions hitting the default accounting element that was selected. 4 Click the Card Data tab to view those transactions possessing the accounting element that will require reallocation.

14 Lesson 2: Setting up Accounting Manager 1. Choose CAR Accounting Manager 3. Assign Site Default value for that element 2. Assign Site and choose element Step Action 1 First, log-in as System Admin and select User Profile Maintenance. Select the profile you wish to set up with the Accounting Manager Role. Under Select User Groups check off CAR Accounting Manager. Click Next. 2 Select the Site first, then the Link type. Choose the CAR field “Link Type” that corresponds to the accounting element the user will need to view. 3 Assign the Site Default value for that element. Click Next through the entire profile then Submit. Note: The user will not be completely linked to the data until overnight processes run.

15 Lesson 2: Transactions with Invalid Accounting Prevent loading bad data in a dynamic environment One cause of invalid accounting data is that when the transaction was first mapped or reallocated by the user the accounting element was valid, but subsequently the accounting element became invalid in the financial system. What was valid at the time of mapping or reallocation, no longer is. ØLoad most current validation files To successfully identify invalid accounting you must first obtain the most recent set of validation files and load them into CAR. After loading the validation files the System Administrator will run the CAR Revalidation task. ØRun “Accounting Revalidation” Task This will cause the tool to check each accounting string derived to the new file(s). If any elements are now found to be invalid, the transaction will be flagged with an exception note and a black exclamation point. You can also set up an email template to trigger an email to go out when a transaction has a revalidation exception.

16 Lesson 2: Accounting Revalidation – Run CAR Revalidate Cycle Task 1. After Selecting Site Maintenanc e choose the Site to revalidate 5. From the dropdown list select the Cycle Date to revalidate, and indicate whether or not to Clear Approvals and click OK 2. Go to the Acct Flds / Validation / Tasks Tab 3. Select the “CAR Revalidate Cycle” Task 4. Start the task 7. Check Log or Reports when complete 6. Click Refresh until Status = Stopped and Result== OK OK

17 Lesson 2: Accounting Revalidation – Accounting Revalidation Report 1. Count of Invalid Transactions as well as the number of Unique Validation Failures is displayed 2 The first 100 Unique Validation Failures are displayed with a count of the number of transactions for each

18 Lesson 2: Accounting Revalidation – Sample Recipient Email Message is defined in Email Notifications

19 Lesson 2: Accounting Revalidation – Card Data Accounting Validation Exceptions 1. Invalid Accounting transactions are marked as exceptions with a black exclamation point (!) 2. The invalid value and accounting element are indicated in the Exception Note 3. User should Reallocate the transaction to valid accounting

20 Lesson 2: Accounting Revalidation – Use Search to Isolate Exceptions 1. Create and Save a Search Query for “Exception Type” “Equals” “Revalidation 2. Clicking Search will reveal all transactions with invalid accounting

21 Lesson 2: Accounting Revalidation – Email Notifications Template 6. Save 1. Choose “CAR Revalidation Exceptions” Template 2. Assign to a Template Set of your own choosing and a Language group 3. Provide a Reply To: & Subject line 5. Either enter the message manually or click on Import Mail Template Body and use the windows browse folder function to locate a text file to import 4. View available codes which collect information dynamically at the time of sending by clicking on View Parameters

22 Lesson 2: Accounting Revalidation – Email Schedule 1. Choose “CAR Revalidation Exceptions” Trigger Event 2. Provide a Schedule Name 3. Use the default frequency and start/stop dates or modify if needed 7. Set Status to 6. Active and then Save 6. Turn on Send Email Report if desired 5. Specify Recipients – 6. typically by User Role 4. Choose the Email Template previously created

23 Lesson 2: Accounting Revalidation – Task Email Notification This is the report sent via email to the specified email addresses when “Send Email Report” is checked. It recaps some of the Accounting Revalidation Exceptions as well as the email address to whom the notifications were sent

24 Lesson 3: Produce Interface File Objective: By the end of this lesson the PA should know the three types of output files and what the various statuses are. Why Is This Important: It is important to know the type of output file the client should be using, because if the wrong one is used it will not interface with their financial system. The statuses are important since they indicate what users can or cannot be do with the transactions.

25 Lesson 3: Producing Interface Files – Output Files § Three formats Basic Enhanced Contains line item detail data Interface File Builder (IFB) § Two types of Dates Date Range Cycle Extract § Transaction Locking § Two Step Process Run the Task Manager: Basic / Enhanced IFB Run Manager: IFB Export the file §Load into ERP / Financial system §Compare File Totals to Statement

26 Lesson 3: Output Files – Extract Types §Cycle Extracts A “Cycle Extract” contains all data for a closed billing cycle Will not run on a previously locked or an incomplete cycle The $ amount of the extract should in most cases match the billing statement Producing a cycle extract usually locks all of the transactions Assures accounting in the file (and target financial system) will match the site accounting The generic cycle extracts always lock transactions IFB Run Manager locks transactions if runtime uses “Closed Cycle Extract” interface type IFB Run Manager will not lock the transactions if runtime uses “Billing Cycle – Non Locking” interface Extract Indicators Each transaction receives a yellow padlock when locked Cycle summary receives a yellow padlock §Date Range Extract Date Range produces a file containing a subset of a closed or open cycle’s data Useful for end of year accruals Producing a date range usually does not lock the transactions Generic Date Range Extracts can be set to lock or not lock transactions IFB Run Manager locks transactions if runtime uses “Date Range – Locking” interface type Extract Indicators Each transaction receives a yellow padlock when locked Cycle summary receives a grey padlock if any (but not all) transactions are locked Cycle summary marked with a yellow padlock if all transactions are locked

27 Lesson 3: Output files – Extract Status §Unlocked Extracts ª Users may perform any tasks their role allows on a transaction (No padlock) §Locked Extracts ª Users may view but not approve/reallocate transactions (Yellow padlock) ª If “Allow Approvals” is enabled transaction may still be approved (Green padlock) • Cannot be reallocated Cycle summary receives a (Grey padlock) if any (but not all) transactions are locked §Posted Extracts Final Step of the monthly process Updates the Customized Reporting tool with summary accounting data Permanently locks all of the data (Red padlock)

28 Lesson 3: Generic Files – Running the Manager 2. Choose the task from the four available: • Cycle Extract • Enhanced Cycle Extract (has LID) • Date Range • Enhanced Date Range (has LID) 1. Go to Site Maintenance / Files / Tasks Tab for the site to produce the file. Tasks can be scheduled to run once on a future date 3. Populate the pop-up form with: • File name and cycle date (all files) • Start & end date (ranges) • Indicate whether to lock transactions (range only) Cycle extract cannot be run if the cycle is not complete (i. e. missing days) or is already Locked Reminder: cycle extracts automatically lock all transactions in a cycle; date range transactions can be locked if indicated Date range cannot be run if already is locked

29 Lesson 3: Generic Files – Exporting Extracts 1. Choose the Files / Files Tab 2. Drill down to the 3. CAR / Interface Files / Site folder and highlight the file and click export Click Export 3. Browse for a folder 4. in which to Save the file Make you save the file Makesure you save with a. TXT extension the file with a. TXTif you wish to view it extension if you wish to view it

30 Lesson 3: IFB Run Manager – Starting the Task 2. Highlight Task 3. Click Start 1. Open IFB Run Manager menu item

31 Lesson 3: IFB Run Manager – Updating the Runtime Definition 1. Optionally provide a different Output File Name 2. Select the appropriate Runtime Definition 3. Choose a billing Cycle 4. Click OK

32 Lesson 3: IFB Run Manager – Exporting the File 1. Click on the files tab. Drill down to the IFB / Output Files folder for the site. Find the file – unless you renamed it, the file name will be template name plus a date and time stamp 3. Use the windows browse function to export the file 2. Highlight the file and click Export

33 Lesson 3: IFB Run Manager – Scheduler 1. Click on the Scheduler tab under IFB Run Manager. Highlight Task to schedule 2. Populate the schedule settings 3. Add the schedule

34 Lesson 3: IFB Run Manager – Scheduler Parameters 1. Populate the Filename Prefix (no spaces) 2. Select Runtime Definition 3. Choose Transfer File if it should be transmitted to an SFTP box 4. Choose the Cycle 5. Click OK

35 Lesson 3: Completed Schedule Task The task has now been scheduled. You can make changes and update if necessary or remove. You can also disable it so the entry still exists but will not run until enabled. Note: This same process is used to schedule generic tasks, but it’s done in Site Maintenance / Files / Scheduler.

36 Lesson 4: Post Extract Tasks Objective: By the end of this lesson, the PA should know that the output file should match the statement total. They should also know where to go to update the various statuses of the output file if needed. Why Is This Important: It is important to match the statement and the output file totals so that the payment made to American Express will clear the balance owing and ensure prompt payment in order to meet the Client Held Days target that has been established for the client. The statuses are important because it allows the company to determine if further allocations or approvals are needed before finalizing the posting process.

37 Lesson 4: Compare Data to the Billing Statement §Central bill clients are required to pay based on the statement Full, no partial payments §Make sure the totals of the file match the totals of the statement If multiple sites for one remit, you may need to add these together §Options for finding extract totals on CAR Log-in as System Admin Click on Site Maintenance File Status screen will display totals When reviewing the extracts, some files may have a header / trailer record which include totals Log-in as End user Accounting / BCA Manager views will have totals §The most common reason the totals do not match Starting data feed in the middle of a cycle Moving BCAs in/out of the remit ICA

38 Lesson 4: Changing Extract Status – Locking / Unlocking / Allow Approvals / Posting 4. Unlock allows all data to be edited (if necessary) 5 Allow Approvals lets users continue to approve transactions on a Locked cycle 1. Status of all Date Range and Cycle extracts is readily visible 2. Date Range and Cycle extracts can be unlocked if post status is “locked”. If status is “posted” the transactions are permanently locked. 6. Post permanently locks cycle extracts 3. Compress the list by choosing Filter List and a cycle date

39 Post Training Expectations / Actions Program Administrator should be able to perform the following tasks at cycle close: ØIdentify transactions with site defaults ØRun a revalidation file to identify accounting elements that are no longer valid ØBalance the billing statement to the output file ØCreate an extract file ØSuccessfully load all transactions into Account Payables system

40 Review / Preview Recap of Key Points: ØRevalidating Transactions ensures quality data is going to load in your company’s AP/GL systems ØUtilizing the Search feature in the End User view (BCA Manager, Accounting Manager, etc. ) allows for quick identification of Accounting Elements ØPosting the transactions allows for Summary level data to feed into Customized Reporting

41 Help For Questions with the CAR Tool Ø CAR end users should contact site/system administrator or internal Help Desk Ø Site/System administrators should contact American Express Front Line Consultants • +1 800 -542 -0995 then choose option 2, option 3 For Configuration Changes or Additions Ø System/Program administrators can contact their Account Manager or the Help Desk to initiate a request for g. TEC assistance with changes to sites or to add new sites