Critical Concepts

Account Numbers / Account Suffix

Each service address is assigned a unique account number. This number can be automatically generated by the system or it can be entered by the user. There is no functional limit to the size of the account number, nor is it required that the account number be just numbers. It can be made up of any combination of numbers and/or letters.

If the system is to generate the next available account number, the account number must be numeric. To get the next available account number, double-click on the account number field in the Add New Service Address function.

The account suffix is a system-maintained field. Every active account number is assigned the value of ‘0’. When the customer leaves the service address, the system ‘finalizes’ the account and sets the account suffix to something other than ‘0’, i.e. A-Z or 1-999. When the account is ‘finalized’ and the account suffix is changed, all the information associated with that account moves with it, so that a complete history of the account is maintained.

Often times there are a number of other account numbers that must be associated with the service address. The following fields are maintained on each customer record:

Original Account Number: If the data was originally retrieved from an automated system, this number represents the account number from that system. In most instances, the account number stays the same during the conversion, but there are times when the new account number may be changed. This field is optional.

Import Key: If information (e.g. meter readings, telephone logs) is imported into the Utility Billing application, this field represents the number that is used as a reference on the imported data. This field is optional.

Export Key: If information (.e.g meter readings) is exported from the Utility Billing application, this field represents the number used as a reference on the exported data. This field is optional.

Tax ID: This field is the tax identification number assigned to the service address. This field is optional.

Parcel Number: This field is the parcel number assigned to the service address. This field is optional.

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Addresses -- Service, Bill To, Owner

The system has the potential of maintaining three addresses per customer account. Each of the addresses includes the recipient’s name,street, city, state, zip code, carrier route and post net code. The first address is the service address. It represents the location where the service is being provided. The second address is the billing address. In most instances, the service address and billing address will be the same. However, if the customer wishes to have the bill and any correspondence sent to a different address, this different address would be the billing address. If more than one bill is to be sent to a given billing address, the user may reference the owner bill to table, rather than entering the billing address information multiple times. The third address is owner's address. The user cannot enter the owner’s information directly, but must enter the information into the Owner/Bill To table and then reference the owner’s record on customer’s account. By referencing the owner in this way, the system can identify each of the customer’s associated with the owner. Further, if the user wishes to change the owner information, the user need only change it in one location.

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Billing Groups, Balance Groups, Services, Transaction Types

The MasterTrak Utility Billing allows the user unlimited flexibility in billing for multiple services on one bill or many bills, and to process those bills without co-mingling the cash received. This is possible because of the existence of billing groups, balance groups, services and transaction types within the application.

When organizing these four components of the billing structure, the following applies. First, the Billing Group is equivalent to a type of bill. For each type of bill, one billing group should be created. For example, if the user prepares one bill a quarter that includes both water and sewer charges, then one billing group would be created. If the user prepares two bills a quarter, one for water charges and one for sewer charges, then two billing groups would be created. In the situation where the user bills quarterly, but bills 1/3 of the accounts each month, as long as the charges being billed are the same each month, only one billing group is required. Further, when cash receipts are entered, the user first defines the billing group (bill) that is being paid. It is possible for a single customer to have multiple billing groups. The system displays the current balance for each Balance Group on the Status tab of the Customers input form.

Each billing group may include one or more Balance Groups. If the bill includes charges for more than one service and the user wants the system to display the current balance of each of those services (or groups of services), the user should create a balance group for each desired group. For example, if the bill includes charges for water, sewer and trash, the user may create three balance groups (one for each). Then the system will display the current balance for each Balance Group on the Balances tab of the Customer input form. The existence of Balance Groups does not affect the processing of bills and or payments. It is merely a way to allow the user to display information. In most instances, the user will create one Balance Group for each Billing Group.

For each charge type that is included on the bill, the user must create at least one Service. The service defines the type of charge, charge basis and rate schedule. The can also define the scheme for applying penalties and interest to each Service. When each Service is defined, the user also defines the appropriate Billing Group and Balance Group. A new Service is required for each new type of charge.

Transaction Types are the records the define various activities and assign the appropriate general ledger accounts to each of those activities. For each service, the following activities are defined: bill, cash receipt, apply penalty, pay penalty, apply interest, pay interest, apply sales tax, pay sales tax, refund adjustments and write-down adjustments. The transaction type will define the general ledger account numbers that will be used.

Because each service has its own set of general ledger account numbers, multiple services can be billed simultaneously without co-mingling the revenue, receivables or cash.

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Account Status

Each billing group for each customer account is assigned an account status from the following list.

Active: Any accounts with this status are included in all processes, including billing, penalty application, and delinquent notices.

Budget: Any accounts with this status are included in all processes, including billing, penalty application, and delinquent notices. This status is assigned to those customers who have made payment arrangements. The system does perform any functions differently for this status from the Active status, but it is used to identify those accounts.

Closed: Closed accounts are accounts that do not have a current customer/resident. These accounts are not included in any processes. These accounts will have a customer name of ‘Vacant’

Final: This account status is assigned to any final account. These accounts will not be included in the billing process, but are included in the penalty application and delinquent notices.

On Hold: If the user wants to exclude any active account from daily functions, this account status should be assigned. The system will not include this account in any processes. However, the account will be included on any report.

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Payment Distributions

In an environment where the user is billing multiple services or is applying penalties and interest, the situation will arise when the customer does not pay the exact amount due. In those situations, the system must know how to apply the payment. To provide this information the user defines the priorities for applying payments by using the Update Payment Distribution function. This function allows the user to define the payment priorities for each billing group. These priorities can be changed at any time

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General Ledger Interface

MasterTrak Utility Billing has the capability of creating a variety of export files that can be used as import files for other third-party General Ledger applications. Specific export files have been created for Fundware, Quickbooks, and Munis. Any third-party General Ledger application that can receive imported journal entries can interface with MasterTrak Utility Billing.

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Readings Interface

In many instances, meter readings are received in the form of ASCII text files from electronic readers or other organizations that actually do the readings. MasterTrak Utility Billing can import and/or export any readings in this format. Because the system maintains an import key and export key separate from the actual account number, the system can receive data from other systems or send data to other systems that do not use the same account numbers.

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Batch vs. Real Time

MasterTrak Utility Billing incorporates batch processing for billing cash receipts and adjustments. In a batch processing environment, the user enters or creates transactions that will ultimately affect the customers account. For example, entering a cash receipt is such a transaction. Then the user prints a journal of the transactions. MasterTrak always prepares two journals. The first journal is a detailed report of the transactions in the same format as they are entered. The second journal is a summary by general ledger account. When these journals are printed, the system verifies that the information included on the journals is valid and correct. If the journals are correct, then the user posts the transactions. It is not until the transactions are posted, does the transaction appear on the customer’s account. Prior to posting, the customer’s account is unaffected.

Each batch is assigned a unique batch ID number. This batch number is permanently associated with the transactions posted to the customer’s account. At any time the user may reverse a given batch or print a report of that batch.

Batches may be entered, reviewed and posted at any time or any number of times in a business day. There is no requirement to post only once a day or have only one batch per day.

The only difference between a batch system as used in MasterTrak Utility Billing and a real-time posting system is the time delay between entering the original transaction and the time it appears on the customer’s account. The problem with real-time systems, however, is that erroneous postings may be applied to the customer’s account prior to being reviewed.

When a batch ID is assigned, the system requires that it be unique. The simplest way to insure the batch ID is unique is to let the system define the batch ID by double-clicking on the process date when the batch ID field is blank.