Follow up on funding

Why do we code bank funding? 

All transactions must have a place to post in the Data Management System.   When we place the account numbers and dollar amounts on the document or check, it’s giving the AR Clerk or another Clerk permission to record the funds as notated.  It’s imperative that the instructions are correct the first time.

Checks, Money-order, Cashier’s Check

All payments are coded as such (Account number, amount, Customer Number assigned to the sales transaction)

If unsure what the customer number should be, check with the organization’s process, some organizations utilize an assigned number; others may use the stock number.

Bank funding

Must be coded as such (Account number, amount, Customer Number assigned to the sales transaction)

Bank funding with reserve paid

* Dealer Reserve payment represents the amount the dealership earned for assisting the customer with getting their vehicle financed.

When funding is paid with the dealer reserve it must be coded as such (Account number, amount, Customer Number assigned to the sales transaction, then provide the account number for the reserve amount variance, confirm the process for the organization) (210000^25000.00^826254) Contract, vehicle sight draft as an example only

(262000^190.00^826254) When paid with dealer reserve coding example only.   Verify with the organization on handling payment variances.   As an example, if the books reflect $215.00 due from the lender but, the lender paid only $190.00, what happens to the difference?

(–xxxx^25.00^826254) Reserve variance as an example only.

Check the DMS system and make a note of the reserve that was recorded on the books.  Follow the organization’s process for the next step in reconciling the amount paid on reserve compared to what was recorded as a receivable reserve due to the lender.