Enrolment Bonds require a slightly different approach from other charges since taking a bond creates an obligation to refund the bond if the account is in good order when the child leaves the service. Of course you are entitled to retain any other amounts owing but any remainder must be returned to the parent.
That is referred to as a liability in accounting terms. You need to keep separate track of your liabilities because you will have to pay them back.
For most services it is sufficient to set up one miscellaneous fee code for the enrolment bond, another for the enrolment bond refund , and third for general refunds.
You do this from the Account > Setup Org > Misc Fee Codes screen.
When setting up the Bond refund code, do make sure the default amount is negative, to account for it being a refund amount.
Set the default amount for general refunds to $0.00 since this amount can change from case to case. You will also need to put a negative (minus sign) in front of teh amount at the time of refunding a general refund, else you will charge them.
To ensure SmartCentral knows which miscellanous fee codes relate to bonds or similar (no matter what you choose to call them) ensure you tick the option Liability? in the miscellaneous fee code.
After the setup is done correctly applying an enrolment bond charge is just like applying any other charge to a parent account. Go to the Balance tab on the parents profile and click Add Misc Fee.
Select the code you have created for the bond , set the date and add a note if required. Click SAVE to confirm the charge. This applies the bond charge to the account. The Bond amount is added to the parent’s balance (transactions TAB) added to the Bond section of the Parent’s main screen, and adds them to the Bond report as a liability.
When the parent pays the bond either directly to the service or via the integrated payments gateway it will net off the charge on the transaction screen, but remain on the Bond report and in the Parent’s Bond Section.
Refunding an enrolment bond is a two step process because the parent may still owe an amount, at account exit, and you are entitled to recover that amount from the bond. Any remaining funds must then be returned to the parent.
Process a MISC FEE to the parent account using the BOND REFUND code set up at the beginning. Make sure you have a negative (minus sign) in front of the amount. Refund the entire Bond amount (if that in fact is what you are doing) as this shows up in the Parent Bond Section (and the Bond balance becomes $0), and removes the Bond Liability from the Bond report.
This cancels the liability and credits the bond back to the parents account (leaving them with $0 balance, in credit or still owing you a debt).
Depending on the parent’s balance before the bond refund the parent may still owe you money (which you will need to recover separately), the account may now be in balance (nothing more to do) or the parent’s account may now be in credit (in which case you need to manually transfer the amount in credit via online transfer or cash to the parent, then manually refund the amount in credit to their SC balance - it may not be the same amount as the bond).
You manually refund the credit via a negative manual payment (record payment on the transaction screen) with a note to say how the credit was retruned to the parent. The parent’s balance should now be $0.
Whether you refund the parent in cash, cheque or funds transfer; you need to record the actual amount that changes hands. You do this by applying a negative manual record payment to the parent’s account for the amount of the refund.
Bonds and similar liability accounts are handled differently by different software systems so adjustments need to be made to the balance transfer process according to your current system’s treatment.
This adjustment will be handled by the support specialist assigned to your transfer but the explanation is included here for your information.
Always note that SmartCentral follows standard accounting practices and negative amounts reflect accounts in credit whereas positive amounts reflect amounts owed to you.
No adjustment is needed and the balance reflected in the import should match the amount owed by the parent after all charges and payments made on or before the cutover date.
The bond charged should be shown in the ‘bond’ column of the import file. There is no need to adjust the balance as this already includes any bond payments made.
The bond charged should be shown in the ‘bond’ column of the import file. Any bond payments made must be added back into the ‘balance’ column.