See a short (2:14) video tutorial on Linking - Ensuring Accuracy
Jackrabbit's system of accounting is known as open-items accounting. In an open-items accounting system, fees are either unpaid (open), partially paid (open) or fully paid (closed). When a payment is accepted, it is linked (or applied) to a fee. With open-items accounting, one fee can go unpaid and age while another fee is paid off.
- Whenever you enter a fee or group of fees into Jackrabbit, it should have a Category 1 assigned to it. Jackrabbit uses Category 1 as a organizational tool and it is explained in detail in the Customize Drop-down Lists topic.
- Think of Category 1 names as 'folder' or 'bucket' names that payments are dropped into depending on what fee the payment is being applied (linked) to.
- When a payment is made, you'll decide what fee the payment is for and apply it to that fee. This is called linking. When you link a payment to a fee, it's as if you've dropped the payment into the fee's Category 1 "folder" or "bucket".
- Using Category 1, reports can be created that display how you've organized all the payments you've received. Payments received are considered revenue or accounts receivable.
Families are assigned a Location (on their Summary tab) and Classes are assigned a Location (on their Summary tab); however, all revenue follows the family location.
Example: You post a tuition fee to a family who has Loc A saved to their Summary tab; however the class is actually in Loc B and assigned that Loc on its Summary tab. A payment is received and you link it to the fee. When running reports related to revenue, the revenue will be reported under Loc A. For instructions on adding, deleting, and editing location names, refer to the Manage Locations in Your Database topic.
Fee Linking with Category 1
Jackrabbit uses Category 1 to organize your revenue (payments). Think of them as 'folder' or 'bucket' names. Every fee posted to Jackrabbit should have a Category 1 assigned to it. When a payment is made, you'll decide what fee the payment is for and apply it to that fee. We call this linking. When you link a payment to a fee, it's as if you've dropped the payment into the fee's Category 1 "folder" or "bucket". If Jackrabbit doesn't see a Category 1 assigned to the fee, the payment is organized as Unapplied or Uncategorized.
It is a Jackrabbit Best Practice to require that a Category 1 be assigned to every fee that you post in Jackrabbit. Point to Tools and click Edit Settings. Scroll down to Transactions Settings and set Require Cat1 to Yes. Save Changes. If Require Cat1 is set to Yes and any user tries to post a fee without a Category 1, a pop-up will let them know it's required.
When a fee is posted to a family's Transactions page, it is not linked until a payment has been received and linked to it; the linking is done from the payment not from the fee. An unpaid fee is easily recognizable by the pink Date Paid field. This field will remain pink until the fee is completely paid.
Linking Example 1
In the screenshot below, a tuition fee of $75.00 has been posted to the Smith family account, but the fee has not been paid. The family still owes the fee. The fee is listed in white, and the Date Paid field is pink.
The family pays the fee of $75 in full and the payment is entered into Jackrabbit. To apply (link) the payment to the tuition enter the amount in the Payment field and click in the Apply Amt column next to the fee. This tells Jackrabbit to 'link' this payment to that fee.
The family's list of Transactions still shows a fee (in white), but the Date Paid field now contains a date and is no longer pink. Other details about the payment have also been added to the fee line (Payment Method, Check #, Notes, etc.) A payment line has been added (in yellow) and the fee and payment are linked. To see what payments are linked to fees click the Link icon on any yellow payment line. Click the Pencil icon to edit the linked fee(s) for the payment.
Even though it is not visible on the payment line, a linked payment takes on the fee's Category 1, Session, Student, etc. For example a $100 payment that paid a $25 registration fee and a $75 tuition fee will take on both Category 1s and the revenue will be reported as $25 in registration fees and $75 in tuition fees.
Linking Example 2
In this example, the Chambers family owes a registration fee of $65 and a tuition fee of $250. No payments have been made and the family's Current Balance is $315.00.
A payment is received only for the registration fee of $65. To record the payment enter $65.00 in the Pmt Amount field and click the Apply Amt field next to the registration fee to tell Jackrabbit to link the payment to that fee.
Jackrabbit leaves the tuition fee of $250 unpaid and applies (links) the $65 payment to the registration fee only.