ACCOUNTING MANUAL - eDynamix · plan confirmation and cancellation, and routine service work carried out as part of a plan. Figure 1: Transaction List (default screen) The Transaction

ACCOUNTING MANUAL

VERSION 3.2

eDynamix | Accounting Manual | v3.2 1

TABLE OF CONTENTS

ACCOUNTS......................................................................................................................................................... 2

SETUP .................................................................................................................................................................. 2

SALES LEDGER .......................................................................................................................................................2

TRANSACTION LIST ......................................................................................................................................... 3

ACCOUNTING PANEL ...................................................................................................................................... 4

TRANSACTION LIST ................................................................................................................................................4

Searching for transactions ............................................................................................................................4

Transaction types ...........................................................................................................................................5

Completing transactions................................................................................................................................7

CUSTOMER REFUNDS...........................................................................................................................................9

Automatic customer refunds ...................................................................................................................... 10

CONSOLIDATION .................................................................................................................................................. 16

VAT PERIOD END ................................................................................................................................................. 17

COMPLETE RECONCILIATION .......................................................................................................................... 18

SERVICE COSTING/INVOICING .................................................................................................................. 19

RECONCILIATION REPORT ......................................................................................................................... 20

MONTHLY INVOICES AND STATEMENTS...................................................................................................... 21

DEALER REWARDS SCHEME ..................................................................................................................... 22

FREQUENTLY ASKED QUESTIONS ........................................................................................................... 23


ACCOUNTS

The principle idea of the accounting system is to mirror the balance sheet values held within the eDynamix Plans 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 Plans System.

All transactions created on the Plans 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.

SETUP

SALES LEDGER

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 VAT), 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.


TRANSACTION LIST

7 new nominal ledger codes are required in the DMS transaction list to control the plan fund and manage the plan transactions with 1

optional nominal ledger to manage cancellation fees. These are:

1 Consolidated Balance

This account is used when the dealer requires all balances in the other accounts (excluding VAT) to be rolled into one. Only

to be used if required by the dealer.

2 Monthly Customer Collections

This is where the money collected monthly by eDynamix should be posted (excluding VAT). These are the customer direct

debit collections.

3 Customer Deposits

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 VAT).

4 Centre/Dealer Contributions

Any amount put towards a plan by the dealer should be posted here (excluding VAT). Mostly used by Sales for promotional

offers.

5 Customer Refunds

When customer refunds are completed in the accounting panel the values will show here.

6 Servicing Costs

Any work carried out by the dealer to a vehicle with a live plan should be posted here (excluding VAT).

7 VAT – Control Account

All VAT posting should be posted here. This account needs to be zeroed down when you complete your VAT return (see VAT

routine).

8 Cancellation Fees (Optional)

Should a plan cancel and the dealer has chosen to levy a cancellation fee to the customer then these monies are deducted

from the customer refund and are posted here with the associated VAT posted to the VAT ledger.

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 Plan system.


ACCOUNTING PANEL

The accounting panel menu is separated in to 5 different sections/functions:

1 Transaction List

2 Customer Refund

3 Balance Sheet Consolidation

4 VAT Period End

5 Complete Reconciliation

TRANSACTION LIST

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 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).

Searching for transactions

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 Transaction List Results

list.


Transaction types

Customer Direct Debit

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 plan Available Funds will then be updated to reflect the cleared balance.

Figure 2: Monthly Collections

NB: Because some supplies may be VAT exempt, such as MOT’s, the VAT percentage may not total the current VAT rates.

Customer Deposits

Customer deposits are split into two values, the net and VAT 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 plan.

Figure 3: Customer Deposits

NB: Because some supplies may be VAT exempt, such as MOT’s, the VAT percentage may not total the current VAT rates.


Centre Contributions

Centre Contributions have no associated VAT 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 Cost

Service costs are entered into the balance sheet when service work is completed as part of a 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 VAT applied as they should be invoiced as an internal transaction - VAT 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.

Completing transactions

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.


It is also possible to complete multiple transactions of the same type from the Transactions and Customer Refunds list . This feature is a

parameter that will need enabled per dealer group.

To complete multiple transactions from the list ensure that the required type has been selected in the Costing Type drop down and the

Search button has been pressed.

The list will then show check boxes against each transaction. As each transaction to be completed is selected the Selected Value and

Selected Transactions counters will increase, see figure 7. Once all transactions are selected and the Complete Selected button pressed

then the Selected Value should be posted to the relevant ledger in the DMS.

Figure 7: Selecting multiple transactions


CUSTOMER REFUNDS

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 8: 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 any monies owed 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 9.

Figure 9: Customer Refund Transactions

NB. It’s very important when setting up a refund in the DMS that the VAT is accounted for correctly as it’s not always at the prevailing

rate due to the possible inclusion of non-VATable supplies, e.g. MOT’s.


Automatic customer refunds

The Automatic Customer Refunds facility removes the need to manually complete any refund and associated VAT transaction on the

balance sheet. The 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:

Customer Refund

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 10: 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 11: Customer Refund Transactions

NB. It’s very important when setting up a refund in the DMS that the VAT is accounted for correctly as it’s not always at the prevailing

rate due to the possible inclusion of non-VATable supplies, e.g. MOT’s.

Automatic Customer Refunds

The Automatic Customer Refunds facility removes the need to manually complete any refund and associated VAT transaction on the

balance sheet. The 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 Plan cancels

2. The system will determine if:

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

The refund will be added to the transaction list for manual processing

A note will be created against the plan:

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.

There are positive available funds in the plan

If not, a plan debtor will be created on the transaction list


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.


Any available funds in the plan are greater or equal to the minimum automatic customer refund amount set in the

parameters. The default is £2.50

If not, the refund will be added to the transaction list for manual processing


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 BACS)

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 automated 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 completed manually. i.e. Bank Account Closed where we can no longer

automatically pay the money back.


A note would be added to the Plan:

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.

If the refund is as a result of a BACS update, i.e. Failed Payments resulting in a plan cancellation, or cancelled Direct

Debit, the system will check if the dealer would like to send refunds for BACS updates. This facility is turned off by

default. This again will result in a posting to the balance sheet which can be refunded manually. 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

BACS update for:

No Account, i.e. the bank details are incorrect. A note would be added to the Plan:



Account Closed, i.e. the bank account has been closed so we cannot refund the money automatically. A

note would be added to the Plan:



Customer Chargeback, i.e. the customer has requested any payments back directly from the customer. A

note would be added to the Plan:

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.

If the facility is turned on but the BACS update was as a result of “Customer Deceased”, the money will

still be refunded automatically but a letter will not be sent

4. The automated refund will be logged with the customers current bank details ready for payment to the customer on the

Wednesday of the week x number of days from the current date as specified in the Automatic Refund Days parameter. This

will then be visible in the customers bank account no later than the Friday of that same week. This delay feature allows for a

plan to be reinstated if cancelled in error. For example:

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 and be visible in the customers

bank account by Friday 12th

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 the following Wednesday, 17th and be visible in the

customers bank account by Friday 19th

5. An Auto. Refund and associated VAT transaction will then be created on the transaction list but will not be available in the

Accounts section to action because the status will be set as Scheduled

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 customer bank account. At the same time:

A summary email will be sent to the nominated dealer account email address where normal refund emails are sent,

see figure 9.

The status on the transaction list is changed from Scheduled to Complete but not available to view.


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 transactions are made visible on the

transaction list 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 12: Automatic Customer Refunds Weekly Summary

Figure 13: Figure 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:

1 Cancellation reasons that result in an automatic refund being generated and a letter being sent

2 BACS update automatic refunds

3 Automatic refund days

4 Minimum refund amount

Should an automatic refund fail for reasons such as the customer closing their bank account then the amount owed will be credited back

to the dealer the following week and an email sent to the nominated accounts email group with details of the failed payment. The dealer

can then contact the customer and refund the monies owed by cheque or bank transfer.

Cancellation Fees

If a plan cancels for a selected reason, such as Plan not required by customer, then a cancellation fee can be levied upon that customer.

These monies will be deducted from the calculated refund and posted to the Cancellation Fees and VAT nominals.

The cancellation fee is not available to search by from the transactions list as it is automatically completed when the customer refund is

complete. However, if a transaction is opened from the transactions list and the plan has an associated cancellation fee then this will be

listed in the list of transactions for that individual record with the option to select and complete disabled, see figure 14.

Figure 14: Cancellation Fee


CONSOLIDATION

Transaction list consolidation is used to consolidate all of the transactions in the other accounts (excluding VAT) into one. This is not a

system requirement but can be done for housekeeping to remove large balances from the balance sheet if required.

Figure 15: Balance Sheet Consolidation

Each centre/dealership can be selected individually or as a group 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 16.

Figure 16: Balance Sheet Consolidation Run


VAT PERIOD END

The VAT period should be completed in line with the dealers normal VAT periods by selecting the Month and Year to run the routine up

to, then pressing Next, see figure 17.

Figure 17: VAT Period End

The values shown on the left in figure 18 show the current value of the eDynamix VAT control account, including any values from the

current period. The values on the right show the VAT values due to the end of the selected period.

1 VATable supplies – all supplies that VAT is to be paid upon

2 VAT – VAT due for the period selected on the VATable supplies

3 Non-VATable Supplies – supplies that are non-VATable (e.g. MOT’s)

Figure 18: VAT 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 VAT Period End to a spread sheet. The VAT Period End can then be run by clicking

the Run button, see figure 19.

Figure 19: VAT Period End Run


The VAT period status is highlighted on the daily reconciliation report, see figure 20.

Figure 20: VAT Period Status

COMPLETE RECONCILIATION

Complete reconciliation allows for an export of all 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 21: Complete Reconciliation


SERVICE COSTING/INVOICING

When a service is invoiced as part of a Plan in the DMS it should also be completed within the Plan system.

Locate and open the plan from the Open Quotes screen or enter the customer name or vehicle registration in the Quick Search b ox.

Once on the Plan Summary screen click the Invoicing tab to view those services now available to complete, see figure 22.

Figure 22: Invoicing Screen

The screen is split into 2 sections, Due Services and Service Schedule. Any service(s) due within the set parameter, in this case 30 days,

are shown in blue and available to invoice. Any overdue services are shown in red.

The Service Schedule shows all services included on the 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.


RECONCILIATION REPORT

The example reconciliation report below, figure 23, 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 Account Manager.

Figure 23: Daily Reconciliation Report

NB: If we do not 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 in the system.

Figure 20 shows the reconciliation report when out of balance due to customer monthly collections, automatic customer refunds and

the associated VAT. Once these values are posted in conjunction with the month end statement and invoice the values will come back

inline.


Figure 24: 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 complete.

MONTHLY INVOICES AND STATEMENTS

Monthly invoices and statements will be delivered via email to the email recipients specified during the setup phase around the 10th

working day of each month. If these are not being received, please check your email Junk folder and then contact your Account Manager

or email the Support Desk ([email protected]).

Statements will be received for the Group as whole and split by dealership. The “Net payment due” values on the statements wi ll match

the value received/deducted from the nominated bank account.

Invoices are the monthly charges incurred by the Group for use of one or more of the eDynamix systems. One invoice will be sent per

dealership. It is advised to post these onto the same purchase ledger account that the Auto. Refund bank values are posted onto for

reconciliation purposes.

The invoice charges are deducted from the money owed to you for customer collections as part of our Plans system and which is detailed

in the statement. If the invoice exceeds the collections owed then a Direct Debit will be setup from the nominated bank account if not

already done so and the monies automatically deducted. This will show as a negative value on the statement. If the invoice does not

exceed the collections due to you a payment will be credited into the nominated bank account.

The monthly statement can then be reconciled against the daily Reconciliation Report to clear down the purchase ledger account on

your DMS and journal the monthly values to the balance sheet codes to balance the DMS to the eDynamix system.

mailto:[email protected]


DEALER REWARDS SCHEME

A Dealer Rewards Scheme is available to all dealer groups, whereby a proportion of the Plan monthly management fee is rewarded back

to the group dependent upon performance.

This reward can be used as a credit against eDynamix monthly charges and will not be available as a cash sum.

The dealer group will begin to achieve a return on the service plan monthly management fee once 1,000 non-compound, confirmed

plans has been reached. The percentage return of the administration fee will increase for every non-compound service plan over 1,000,

to a maximum of 20% when 10,000 plans are confirmed. On top of the management fee percentage return, a fixed 5% reward will be

earned based on the total number of confirmed plans.


FREQUENTLY ASKED QUESTIONS

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 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 VAT?

The invoices should have no VAT applied as they should be invoiced as an internal transaction with VAT 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 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 VAT 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 Why does the VAT on my monthly statement not match the current VAT rate?

When a customer takes out a plan the VAT on the items included on the plan is calculated and accounted for as with any

purchase. Where non-VATable items are included in the plan, i.e. MOTs, the total value of the plan is calculated including

these items and therefore the total VAT element will be calculated at less than the current VAT rate.

9 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 Plan system and the DMS as discussed in the Reconciliation

Report section of the manual.

10 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.


11 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 [email protected]

mailto:[email protected]

Documents

ACCOUNTING MANUAL - eDynamix · plan confirmation and cancellation, and routine service work carried out as part of a plan. Figure 1: Transaction List (default screen) The Transaction