This series is designed to give the florist a basic understanding of the wire order segment of the floral business. Because there are several different segments of the Wire Order Business, each week I will attempt to cover one of the below topics.
1. Understanding How Wire Orders are generated
2. Why do I want or need a Wire Service?
3. What are the Income and Expense involved with Wire Orders?
4. How do I report my Wire Orders?
5. How do I read my Wire Statement?
6. How Do I reconcile my Wire Statement?
7. How do I account for my wire orders in my books / accounting records/ general ledger?
This week we will discuss:
How do I read my Wire Statement?
Every day we wonder how we can get better at reading our wire statements. Working with all three wire services can be difficult because they all have the same information, but the catch is the format is always different. Make sure that you dig deep for the information that you need!
We will use the BloomNet florist statement as a general example for this blog. The print is big and easy to read!
Start at the first page of the florist statement, there will be a summary. If you look at the very top of the statement, you’ll see the statement date, period covered and when the payment is due. You will also be able to see how much is past due and the amount due at the very top of the page!
Going to the next section. We can find the account summary statement that is followed by order summary and rebates. You’ll see the payment stub section on the bottom of the first page.
Account Summary– You’ll see the previous statement balance, payments received and payments from the wire service. You’ll see the beginning balance. Let’s look at a math example for a better understanding!
Take the previous balance, which is $1,000 less than your payment. It is $1,000 plus the payment to the florist $0. Since this shop had a balance of $1,000 before, the shop will not be getting a payment because the original balance was zero. Keep in mind that we keep track of the payments for the month up to the payment due date, so that it is always credited to your account.
Find the beginning balance number. There, we can see a summary underneath orders received.
Orders Received– money owed to you for filling the orders
Orders Sent– money you owe the wire service for orders sent to other florists
In the summary, there is also charges for membership, technology, supplement services, directory, advertising and products. On the statement, we can see CR, which is money that is owed to you. It is also known as a credit against money you owe the wire service.
Order Summary– The order summary recaps the number of orders and order value that you have received or sent for the current month and year to date.
Rebate for Other Sent– This will show the order sent and rebate earned, and rebates paid for previous month and year to date.
Let’s move on to BloomNet Statement Page 2. On this page, we can find instructions on how we can read our clearinghouse statement. Page 3 is where it states the details for the charges and credits (CR). It starts with payments made, payments to florist and order received. The orders received are usually broken into two sections. It is broken into the dot com and Florist to Florist (F2F).
These sections are most important to view to make sure you are filling each order. You could be getting credit back. In the blog last week, “How to Report my Wire Orders,” you can find helpful information on how to report orders that weren’t automatically reported through a network.
Price Changes– Double check the orders you requested a price change for to fill the order. The only thing that might occur is the price change. It is not reflected in the amount of the statement. If that is the case, then you need to file an adjustment to get paid the price change.
The orders that you have sent out, it may show up on the statement for the month. If the filling florist didn’t report receiving the order in the same month of filling, then it will show up in the next month. Membership services will provide details to make sure you understand the charge and agreed to the service.
In this series next blog, we will talk about how to enter wire service charges into your accounting records. (Books / General Ledger).