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VIRTUBANK CALIFORNIA
CALIFORNIA VIRTUAL ENTERPRISE
ON-LINE BANKING MANUAL
VIRTUBANK CALIFORNIA BANKING MANUAL
TABLE OF CONTENTS
Virtual Enterprise Banking Workshop 3
Checking 5
Business Checking 5
Personal Checking 5
Savings 5
Front Office 6
7
Viewing Personal or Business Checking/Savings Accounts 7
Transfer Funds between Checking and Savings Accounts
8
Make Payments
Viewing Pending and Successful Transactions 8
Add Payees 9
Delete Payees 9
Back Office 10
11
Create a New Account 11
Modify Accounts
12
Deactivate Accounts
Reactivate Accounts 12
Manual Deposit 13
Reports/Bank Statements 13
Reports (Payments Made to Companies) 14
Apply for a Loan
14
Loan Approval
Apply for a Business Contract 15
15
Branch Banker Job Description 16
Bank Account Types and Easy Searches 17
Proposed Ways to Stimulate the VE Economy 18
Banking WorkFlow 19
VirtuBank Standard Payment Rates for Companies 21
Personal Finance Assignment Lesson 22
Percentage Chart for Expenses 23
VirtuBank Standard Payment Rates for Individuals 25
2
VIRTUAL ENTERPRISE BANKING WORKSHOP
FRONT OFFICE – All customer accounts are held within the online banking program, Front
Office. Front Office is the software program used by the VirtuBank for individual accounts.
Individual users and companies will pay bills, access records, and access information using
this system. All Branch Bankers will use the company account in Front Office to pay
employee salaries, company bills, and payroll taxes.
BACK OFFICE – All Branch Bankers will work within the online banking program Back Office.
Back Office is the administrative program for the VirtuBank. Branch Bankers will pay bills,
access records, deposit money, access user information and perform all other job duties in
the Back Office.
BRANCH BANKER JOB DESCRIPTION – All Branch Bankers need to review the Branch Banker
Job Description include in the Banking Manual.
ACCOUNT SEARCHES – All Branch Bankers need to review and explain the Bank Account
Types and Easy Searches document that will be used by all users in the Front Office.
VE ECONOMY – All Branch Bankers need to review the Proposed Ways to Stimulate the VE
Economy document and explain this to all bank users in your company.
PASSWORDS – Two (2) passwords will be supplied to each individual company at the student
training workshop. These two (2) passwords are for the following: Front Office company
account and Back Office Branch Banker account. If these passwords are lost or stolen,
please communicate with the VEC Office immediately.
MODIFY ACCOUNTS: CHECKING PASSWORDS & CHANGING PASSWORDS – This can be done in
the Back Office using the Modify Account button. Using the search field, type in the
individual’s name that you are trying to check or change their password.
DEACTIVATE AND REACTIVATE ACCOUNTS – These two (2) functions can be found in the Back
Office. Using the search field, find an individual’s name to deactivate or reactivate an
account.
NEW ACCOUNTS – By using the New Account button in the Back Office, a new customer
account can be created. The new employee’s name followed by the name of their company
will be placed in the entry form along with this employee’s user name and password.
Branch Bankers will do this at the Student Training Workshop. As other employees are
added to the company, this process can be repeated for new employees. Automatically,
$100 will be deposited in each employee’s checking and savings account. This money does
not need to be accounted for in your company records.
EMPLOYEE SIGNING BONUS – By using the Manual Deposit button in the Back Office, each
individual company member will be given an automatic $6,000 signing bonus for joining the
company. Starting in November each individual company employee is expected to start
completing his or her Personal Finance Assignment. Please review the Personal Finance
Curriculum unit that is located on the Virtual Enterprise website under the Curriculum tab. In
this unit you will find the bills that are required to be paid monthly by each individual student.
REPORTS – In the Back Office, using the Reports button, Branch Bankers are able to see
payments made to all companies. This can be done by clicking on the Payments Made to
Companies tab and selecting the company. Please make sure that your coordinator is
3
aware of how to use this tab. Also, the Branch Banker can run individual employee and
company Bank Statements on a monthly basis.
PAYING COMPANY BILLS – The company bills must be paid using the company checking
account in Front Office. By using Front Office these bills are to be paid starting the first
month your company is open for business and continue throughout the year. It is the
Branch Banker’s (or Accounts Payable Clerk) responsibility to make sure that company bills
are paid monthly. There is a list of company bills in this manual. Also, each company is to
pay their employees’ salaries and payroll taxes out of the company checking account on a
monthly basis.
PAYING BILLS: THE IMPORTANCE OF WRITING MEMOS & INVOICING CUSTOMERS – In the Front
Office under the Payment tab, the Branch Banker needs to stress the importance of filling
out the memo field when employees and the company makes payments. Bills should not be
paid without including an invoice number and memo in the memo field on the payment form.
If companies do not send an invoice or bill, the company and/or employee needs to e-mail
that individual company and request that an invoice or bill be sent. A copy of this e-mail
should then be filed and turned in with employees’ monthly personal finance assignments.
Company employees, as well as the company, should have copies of invoices or bills in
order to pay other companies. The only bills that the company and its employees must pay
without an actual invoice are the bills to the various VirtuCompanies, such as VirtuElectric.
LOAN APPLICATION – In the Back Office, the Branch Banker will find the Loan Application
tab. In conjunction with the company Business Plan, the banker or Accounting Vice
President/CFO should apply for a Business Loan. Complete the online Business Loan
Application in the Back Office. All fields need to be filled in for the loan to go through;
otherwise, the loan application form will reappear. Once submitted correctly, the loan will
take 5-7 days to be processed. The company will be notified of the successful completion of
this loan process. Once approved, the money will automatically be deposited into the
company checking account. The Loan Documents and Payment Schedule (amount to be
paid each month to the VirtuBank) will then appear in the Back Office under the Loan
Application tab.
BUSINESS CONTRACTS - The purpose of the Business Contract made with the Virtual
Enterprise Center is to provide the Gross Monthly Payroll of all company employees. If the
company is a product-based company, Cost of Goods sold to the VEC for this payroll
amount must be added into the contract request. For example, if the total company gross
payroll every month is $100,000 and the cost of goods that the company is selling to the
VEC in this contract is $25,000 each month, the total amount of the Business Contract will
be $125,000. The $25,000 will then go out of the company account to pay for the cost of
goods; the remaining $100,000 will go to pay the company employees their Net Monthly
Salaries and the entire Federal (withholding, Social Security, & Medicare) and State
(withholding & CSDI) Payroll Taxes each month.
The Branch Banker will apply for the company Business Contract with the VEC using the
Business Contract tab in Back Office. All fields must be filled in for the Contract to be
successfully submitted; the actual Contract will then appear in Back Office if successful.
Business Contract will appear in Company Checking account on the 1st of every month after
application. For example, if submitted prior to November 1st, contact will appear on the 1st of
every month, beginning in November and ending in April. However, if submitted after
November 1st, contract money will appear every month, beginning in December and ending
in April. If submitted after December 1st, contract money will appear every month, beginning
in January and ending in April, and so on.
4
Checking
Checking accounts in the VirtuBank are the only accounts with which a customer can make
outside payments – payments made to other individuals or companies. Transfers can be
made to and from a savings account from a checking account.
Business Checking
Business Checking is an interest earning checking account available only to Virtual
Enterprise Companies.
Business Checking is subject to a monthly Service Charge of $25. If a monthly
Service Charge is assessed, it will be deducted from your account on or near the
first day of the month.
Interest – Interest on your account is compounded daily using a 365-day year, paid
monthly, and calculated on your interest earnings balance. Your interest earning
balance consists of your account balance at the end of each banking day. The
interest rate is subject to market conditions, is determined by us from time to time,
and can be changed by us as often as daily. While Business Checking accounts do
earn interest, they do not earn as much interest as Savings accounts.
Personal Checking
Personal Checking is a non-interest earning account used by students, teachers,
and visitors.
You must deposit a minimum of $100 to open a Personal Checking account. There
is a monthly service charge of $9 in California.
Savings
Savings accounts in the VirtuBank System earn interest, but do not allow customers
to make payments outside of their own account. There are no fees associated with
VirtuBank savings accounts. Both Business and Personal Savings accounts in the
VirtuBank System are functionally the same. If you would like to make a payment
with money in your savings account, transfer the money from your savings account
to your checking account, and then make the payment from your checking account.
Interest – Interest on your account is compounded daily using a 365-day year, and is
calculated on your interest earning balance. The interest rate is subject to market
conditions, is determined by us from time to time, and can be changed by us as often
as daily. Interest earned on your account will be paid on or near the first of each
month.
5
Front Office
http://www.virtualenterprise.org/virtubank/default.asp
Used By All Company Employees
View Personal or Business Checking/Savings account balances
Transfer funds between Checking and Savings accounts
Make Payments
View Pending and Successful Transactions
Add/Delete Payees
If you already have a UserName and Password in the VirtuBank and you would like
to access your account, simply type in that information in the appropriate place
beneath the word “LOGIN”. If you don’t have a UserName and Password, or would
like to apply for a new checking and/or savings account, contact your Branch
Banker, which should be a student working within your own company.
6
Front Office
Viewing Personal or Business Checking/Saving Account Balances:
Log in
Click on Checking or Savings
View Past Account Details for selected month (Figure 1.1)
Figure 1.1
Transfer Funds between Checking and Savings Accounts:
Click on transfer
Select From Account (Figure 1.2)
Select To Account
Enter Amount
Type Memo (A very important step that should not be skipped)
Click Submit ***
Figure 1.2
***If incorrect payment was made, see Pending/Successful Transaction
7
Make Payments:
Click on Payment
Select From Account
Select To Payee (Figure 1.3)*** Type in Amount of Payment
Type in a Memo/Invoice of the transaction (include invoice number if
possible)
Click Submit
Figure 1.3
*** If payee not in the drop down list, see Add Payee
Viewing Pending and Successful Transactions:
Click Pending
Click on Transaction (Figure 1.4)
Click on Remove Completed/Cancel Active
Figure 1.4
8
Add Payees:
Click Payees
Click on Add Payees
Click on Lookup
Locate the Company or Name to add your payee list (Figure 1.5)
Click on Add Payee
Click Submit
Figure 1.5
Delete Payees:
Click Payees
Click Delete Payee
Click to select Payee (Figure 1.6)
Click to Submit
Figure 1.6
9
Back Office
http://www.virtualenterprise.org/virtubank/backoffice/
Used By Branch Bankers and Coordinators Only
Create New Accounts
Modify Accounts
Deactivate and Reactivate Accounts
Manually Deposit
Run Reports
Apply for a Loan
Apply for a Business Contract
10
Back Office
Create a New Account:
Log in
Click on New Account (Figure 2.1)
Type in Name, Company Tag (Name of your Company) UserName and
Password
Click on Submit
Figure 2.1
Modify Accounts:
Click on Modify Account
Click Search
Select account to be modified and Click on Edit
Edit required information (Figure 2.2)
Click on Submit
Figure 2.2
11
Deactivate Accounts:
Click on Deactivate account
Click Search
Select account and Click on Deactivate
Confirm Selection (Figure 2.3)
Click Deactivate
Figure 2.3
Reactivate Accounts:***
Click Reactivate Account
Click Search
Selected account and Click on Reactivate
Confirm selection (Figure 2.4)
Click reactivate
Figure 2.4
*** If an account has been deactivated, it will appear in the reactivate list.
12
Manual Deposit:***
Click on Manual Deposit
Click Search
Select Account for Manual Deposit
Click Deposit
Type in a Description (Figure 2.5)
Type in an Amount
Select Account (Checking or Savings)
Click Submit
Figure 2.5
*** Manual Deposit is not to be used for depositing Employee payroll.
Reports (Bank Statements):
Click Report
Click Statement
Select the Month
Click Submit
Select Customer Statement to view (Figure 2.6)
Select Account to view (Checking or Savings)
Figure 2.6
13
Reports (Payments Made to Companies):
Click Report
Click Payments made to other Companies
Select the Month (Figure 2.7)
Select Company
Click Submit
Figure 2.7
Apply for a Loan:***
Click Loan Application for help in start-up costs for business
Fill in ALL fields to assure correct submittal (See Figure 2.8)
Click Submit
Figure 2.8
***Loans are processed in 7-10 days.
14
Loan Approval:
Go into Back Office several days after application
Click Loan Application
If submitted correctly and approved, the following should appear:
o Loan Document
o Payment Schedule for monthly repayment of Loan
Apply for Business Contract:***
Click on Business Contract for help with monthly payroll
Fill in ALL fields to assure correct submittal (Figure 2.9)
Click Submit
Figure 2.9
***Business Contract will appear in Company Checking account on the 1st of every month
after application. For example, if submitted prior to November 1st, contact will appear on the
1st of every month, beginning in November and ending in April. However, if submitted after
November 1st, contract money will appear every month, beginning in December and ending
in April. If submitted after December 1st, contract money will appear every month, beginning
in January and ending in April, and so on.
NOTE: The purpose of the Business Contract made with the Virtual Enterprise Center is to
provide the Gross Monthly Payroll of all company employees. If the company is a product-
based company, Cost of Goods sold to the VEC for this payroll amount must be added into
the contract request. For example, if the total company gross payroll every month is
$100,000 and the cost of goods that the company is selling to the VEC in this contract is
$25,000 each month, the total amount of the Business Contract will be $125,000. The
$25,000 will then go out of the company account to pay for the cost of goods; the remaining
$100,000 will go to pay the company employees their Net Monthly Salaries and the entire
Federal (withholding, Social Security, & Medicare) and State (withholding & CSDI) Payroll
Taxes each month.
15
BRANCH BANKER JOB DESCRIPTION
The VirtuBank Branch Banker position is one of the most vital jobs in the Virtual
Enterprise Simulation. This document will try to describe the duties and responsibilities of
that position. Listed below are the primary jobs required of the branch banker.
1. Establish company account
2. Maintain records of company payments
3. Responsible party for company payments
4. Establishes individual customer accounts
5. Maintains records of individual customer payments
6. Responsible party for collections of past due accounts
7. Reports individual customer delinquency
8. Communicates regularly with other branch bankers on financial matters
9. Communicates regularly with central office on overdue account matters
10. Serves as watchdog over his financial institution rating
Establish company account - The VEC Office will establish company bank accounts,
the username & password for the account. This information will be given to the branch
banker and coordinator. This password and username should be shared will only the few
established people in the company that need to know the information.
Maintain records of company payments - As part of company ratings, records of
company bill payments must be maintained. You will have to show proof monthly that all bills
have been paid in full in a timely fashion.
Responsible party for company payments – Company branch bankers are directly
responsible for making sure bills get paid. This responsibility should not be delegated to
anyone else. A list of mandatory start-up bills can be found at this link. You will start this
process by completing the linked form called Start-up Verification. This form must be
completed six weeks after you are open for business or sooner. This task is one of your
second quarter requirements.
Establishes individual customer accounts - Each company branch banker is
responsible for overseeing the process of making sure that all branch bank customers have
individual accounts. They are responsible for activating, processing, and maintaining all local
bank customer accounts.
Maintains records of individual customer payments - They will oversee and
report information to the VEC Office on individual branch bank customers. They will be asked
to give monthly reports on the status of branch bank accounts.
Responsible party for collections of past due accounts - They banker is the
collection person by other virtual enterprises to make sure payments due are made by
companies and individuals. Branch bankers will be involved in direct communications (email
or fax) to make sure that all customers are in good standing in their personnel finance in the
simulation. The VEC Office will not be involved in collection, unless documentation of
communication between banks has failed to produce a resolution.
Reports individual customer delinquency - They will be involved in reporting
delinquent payments to other branch bankers and the VEC Office. It is the responsibility to
monitor customer accounts to make sure bills are being paid monthly. They need to work
with their VE coordinator in this process notifying them of past due accounts.
Communicates regularly with other branch bankers on financial matters –
Banker is required to communicate and produce reports to other banks and the VEC Office on
financial matters. This will be done for company and individual accounts. This communication
will be ongoing on a daily, weekly, and monthly basis via email.
Communicates regularly with VEC Office on overdue account matters- Banker
required to communicate and produce reports to other banks and the VEC Office on overdue
accounts. This will be done for company accounts and individual accounts. This
communication will be ongoing on a daily, weekly, and monthly basis via email.
Serves as watchdog over his financial institution rating - They fill the role of
watchdog over the good credit rating and financial standing in the Virtual Enterprise
simulation. It is there responsibility to safeguard that all due payments are being made.
16
BANK ACCOUNT TYPES AND EASY SEARCHES
There will be seven major types of bank accounts on the VirtuBank. All accounts will fall
under one of the five headings. By using some simple search words you can access all five
types of accounts easily. The five types of accounts are as follows:
1. Individual Customer Accounts (Search = Person’s name)
2. Coordinator Accounts (Search = Coordinator)
3. Company Accounts (Search = California)
4. Visitor Accounts (Search = Visitor Company Abbreviation)
5. Out of California Company Accounts (Search = State Name or Country Name)
6. Dummy Accounts (Search = Company Name)
7. Virtual Enterprise Center (VEC) Simulation Accounts (Search = VEC)
Individual Customer Accounts - When adding an individual account please have the
following two items correct: the individuals first / last name and full VE company name of
employment. Example: Brenda Ramirez – Stockdale Property Management. Please place a
hyphen (-) between the name and company. Accounts not following these instructions will be
deleted from the system.
To search for an individual on the VirtuBank – 1. Go to Payees, then to Add Payees, and
then to Lookup Payee. When you get to the lookup feature, type in the employee’s company
name. Example: Kali Business Designers or Universal Connections.
Coordinator Accounts - This account is completed for you by the VEC central office.
These accounts must have the following two items correct: the individuals first / last name
and the title coordinator. Example: Nancy Phillips – Coordinator. Please place a hyphen (-)
between the name and coordinator. Accounts not following these instructions will be deleted
from the system.
To search for a coordinator on the VirtuBank – 1. Go to Payees, then to Add Payees, and
then to Lookup Payee. When you get to the lookup feature type in the word coordinator. This
will bring up a list of all coordinators.
Company Accounts - This account is completed for you by the VEC central office.
These accounts must have the following two items correct: the full name of the company and
the words company account. Example: Night Owl--California. Please place a hyphen (-)
between the name and company account. Accounts not following these instructions will be
deleted from the system.
To search for a company on the VirtuBank – 1. Go to Payees, then to Add Payees, and
then to Lookup Payee. When you get to the lookup feature type in the California. This will
bring up a list of all company accounts.
Out of California Company Accounts - This account is completed for you by the
VEC central office. These accounts must have the following two items correct: Name of out of
State Company and the area the company is located. Example: Barton Industries – New
York. Please place a hyphen (-) between the name and state. Accounts not following these
instructions will be deleted from the system.
To search for an out of California account on the VirtuBank – 1. Go to Payees, then to
Add Payees, and then to Lookup Payee. When you get to the lookup feature type in the state
name. This will bring up a list of all the state’s accounts. The basic states are New York,
South Carolina, & Virginia. We will be adding other state and countries in the future.
Dummy Accounts - When adding a dummy account please has the following two
items correct: the company name and full VE company abbreviation that created the account.
17
Example: Pacific Bell – UC (for Universal Connections). Please place a hyphen (-) between
the name and company. Accounts not following these instructions will be deleted from the
system.
To search for a dummy accounts on the VirtuBank – 1. Go to Payees, then to Add
Payees, and then to Lookup Payee. When you get to the lookup feature type in the company
abbreviation. Example: Jazzy Juice (JJ) or Le Grain De Cafe (LG).
Virtual Enterprise Center (VEC) Simulation Accounts – These accounts are
created by the Virtual Enterprise Central office and they are usually used to fill in where
virtual companies do not exist. Examples of these types of accounts: California VirtuWater,
The VirtuBank of California, VirtuFranchise Tax Board of California, VirtuInternal Revenue
Service, VirtuTelephone Company, etc.
To search for a Virtual Enterprise Center (VEC) Simulation Accounts go on the VirtuBank – 1.
Go to Payees, then to Add Payees, and then to Lookup Payee. When you get to the lookup
feature type in VEC. Example: VirtuGasoline - VEC or UC Southern California VirtuGas
Company - VEC.
PROPOSED WAYS TO STIMULATE THE VE ECONOMY AND
ENHANCE THE VE SIMULATION
The following are some ways in which to stimulate your company’s sales and the
Virtual Enterprise Economy:
1. We need to have more outside parties participate in the VE simulation.
Visitors, principals, teachers, business partners, parents and other
interested parties may conduct transactions in the VE simulation.
Each visitor will be given $1,000 to spend per classroom visit.
Each coordinator will transfer the visitor sales’ money from his/her account
into the company bank account after the Sales and Accounting
Departments produce a spreadsheet with all the sales and their amounts
from a visit.
2. We need to have more money and transactions circulate in the simulation.
By using this system, the VE economy has just expanded.
It is hoped that all visitors will now be treated as potential customers, not
just visitors.
This will force companies to work on sales techniques.
The VE Coordinator will be given funds in their personal bank account to cover these
visitor transactions.
18
BANKING WORKFLOW
Topic/Task:
Company Banking/Banker
Recommended Department(s) Responsible:
Accounting/Finance
Objective:
Set up and keep accurate and complete financial records for employees and company.
Pay all company bills, company & employee payroll taxes, sales & corporate taxes, and
merchandise/inventory costs.
Timeline:
Quarter 1: Steps 1 - 5 should be completed by October 31st for the 10-hour company or
by the end of the month before the month the 5-hour company opens (i.e., December
31st for January opening).
Quarters 2 thru 4: Steps 6 - 14 should be completed every month, November through
April and/or May. Five-hour companies may need to readjust some time lines
depending upon opening of the company.
Steps to Complete:
Modify the following procedures, as needed, depending on the type of product or
service that your company offers.
Step 1: Set up checking and savings accounts for the company and each company
employee by using the Back Office format (VirtuBank guidelines) given out at
Workshop during Quarter 1. Each employee should have a log-on and password to get
into their individual accounts.
Step 2: Place one month's gross pay (no taxes taken out) in each employee's checking
account, depending upon what payroll & CEO/CFO have determined as position
salaries), by the end of October. Use the MANUAL DEPOSIT feature in Back Office
this time only! DO NOT DEPOSIT EMPLOYEES' PAY USING THIS FEATURE FOR
ANY OTHER MONTH.
Step 3: Establish a Personal Finance file folder for each employee in the company.
Keep folder in the branch banker's files or Personal Finance files.
Step 4: Establish Company Finance folders for each month in which to place
employees' payroll checks, company bills, company statements, etc. Keep in
Accounting/Finance files.
Step 5: Design and develop, if necessary, checks and deposit slips for each company
employee with which to pay their bills and deposit their payroll checks. Others may
also do the design work in the Accounting/Finance Department.
Step 6: Run copies of Monthly Fixed Living Expenses, Weekly Fixed Living Expenses,
Flexible Personal Purchases, and Check Register forms for each employee at the
19
beginning of each month. Copies of these forms are found at www.virtualenterprise.org
(Personal Finance Curriculum/Personal Finance Lesson & Sample Section).
Step 7: Place 1 copy of Monthly Fixed Living Expenses, Flexible Purchases, and
Check Register forms and 4 copies of Weekly Fixed Living Expenses form in each
employee's Finance folder by 1st of each month.
Step 8: Accept personal checks from each employee when they pay their fixed weekly
expenses at the end of each week and when they pay their fixed monthly living
expenses by the 10th of each month. Accept checks for employees' personal
purchases throughout the month.
Step 9: Check employees' accounts by the 15th and 30th of each month to see that
they have sufficient funds to cover expenses. Stamp or hand-write "Paid" on each
check. Return cleared checks to employees' Personal Finance folders. Return "non-
sufficient funds" or NSF checks to employees.
Step 10: Review employees' Personal Finance folders at the beginning of each week
to see if they are paying their bills, recording payments, and income on check register.
Remind employees and coordinator of non-payments via memo.
Step 11: Run a monthly statement by the end of each month, or earlier, for each
employee so he/she may reconcile his/her bank statement and check register.
Determine specific date to run statements on that same date each month.
Step 12: Deposit each employee's payroll check(s) into his/her personal account when
he/she turns in check with deposit slip. DEPOSITS TO EMPLOYEES WILL COME
OUT OF THE COMPANY'S CHECKING ACCOUNT.
Step 13: Pay all company bills out of company account after receiving list from
Accounts Payable by the 10th of each month.
Step 14: Pay employee and company payroll taxes after receiving list from Payroll by
the 10th of each month. For example, November's payroll taxes should be paid by the
10th of December.
Step 15: Pay company sales taxes, if applicable, after receiving amount from Account
Payable by the 10th of each month.
Step 16: Pay VirtuBank for merchandise/inventory monthly, if applicable, to fill both
Business and VEC Contract orders and individual orders after receiving amounts from
Accounts Payable.
20
VIRTUBANK STANDARD PAYMENT RATES FOR COMPANIES
2006-07
VEC Company Total Amount to Rates for Monthly Dates Payments Are
Be Paid Service Overdue
California VirtuWater - $3.00 per person in Starting November 1 bill
th
VEC company must be paid by 10 of
each month
Southern California $3.00 per person in Starting November 1 bill
th
VirtuGas Company - company per month must be paid by 10 of
VEC each month
VirtuElectric- VEC $30 per person per Starting November 1 bill
th
company a month must be paid by 10 of
each month
VirtuGasoline - VEC ($2.50 a gallon) Starting November 1 bill
th
60 gallons must be must be paid by 10 of
purchased per month each month
per company vehicle
($150.00 per month)
VirtuTelephone $25 per person per Starting November 1 bill
th
Company - VEC company a month must be paid by 10 of
each month
The VirtuBank of Loan Payments and Starting November 1 bill
th
California - VEC Rental Payments (if must be paid by 10 of
not with a Virtual each month
Company)
VirtuInsurance of $30 per person per Starting November 1 bill
th
California – VEC month (if not with a must be paid by 10 of
Business and Virtual Company) plus each month
Workman’s Comp Workman’s Comp
VirtuCarInsurance of $250 per month per Starting November 1 bill
th
California - VEC vehicle (if not with a must be paid by 10 of
Virtual Company) each month
VirtuFranchise Tax California State Taxes Paid when needed monthly
Board of California - to be paid to this for Payroll Taxes for
VEC account (State company employees and
Income, SDI, and for Corporate Taxes for
Sales Taxes 7.25%) company
VirtuInternal Revenue Federal Taxes to be Paid when needed monthly
Service - VEC paid to this account for Payroll Taxes for
(Federal Income, company employees and
Social Security, and for Corporate Taxes for
Medicare) company
VirtuRed Cross - VEC All charitable Paid when needed monthly
contributions paid to
this account
The VirtuBank of Make any other Starting November 1 bill
th
California - VEC payment that you can must be paid by 10 of
not find a place to pay each month
to this account
Virtual Internet $350.00 per month for Starting November 1 bill
th
Service Company - high speed internet must be paid by 10 of
VEC service each month
VirtuProperty $3,500 per company Starting November 1 bill
th
Management - VEC per month (if not with must be paid by 10 of
a Virtual Company) each month
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PERSONAL FINANCE ASSIGNMENT LESSON
How do I complete a Personal Finance Assignment?
One of the goals of the Virtual Enterprise course is to provide "real-world" experiences
affording you the opportunity to learn in an interactive environment. In an attempt to
simulate what your life might be like upon entering the workforce, you will be given the
responsibility of maintaining your own personal finances.
Upon receiving your job assignment and salary, the Branch Bank Manager will deposit one
(1) month's gross salary in your VirtuBank account and you will be required to do the
following:
Fill out your W-4 Form and turn it in to your company's Payroll Clerk or Branch Bank
Manager.
Determine your fixed weekly and monthly living expenses and your flexible purchase
expenses by using the Percentage Chart for Expenses (at end of this assignment).
Produce your fixed and flexible weekly and monthly expenses using Excel or Template
to be kept in your Personal Finance Folder.
Write checks by November 10th to pay for your fixed monthly living expenses and write
checks weekly to pay for your fixed weekly living expenses. Also, pay these expenses by
electronically transferring the correct amounts from your VirtuBank account to correct "real"
Virtual Enterprise companies and/or "mock" VirtuCompanies.
Fixed Monthly Living Expenses should include, but not limited to, the following:
EXPENSE: COMPANY*:
Rent (or mortgage Any Real Estate Virtual Enterprise, the VirtuBank, or
payment) VirtuProperty Mgt.
Renters Insurance The VirtuBank of California (Virtubank of California)
Electricity (utility) VirtuElectric Company
Gas (utility) Southern California VirtuGas Company (VirtuGas Company)
Water (utility) California VirtuWater
Telephone (utility) VirtuTelephone Company
Cable TV (utility) The VirtuBank of California (VirtuBank of California)
Car Insurance VirtuCar Insurance of California
Savings Account Transfer from Checking to Savings
*It is possible new "real" Virtual Enterprise companies will be established to take the
place of the "mock" VirtuCompanies.
Fixed Weekly Living Expenses should include, but not limited to, the following:
EXPENSE: COMPANY*:
Gasoline VirtuGasoline
Food VirtuBank or a VirtuCompany selling food
Household Supplies VirtuBank or a VirtuCompany
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*There will be a variety of "real" VirtuCompanies to buy the above from.
Record all fixed living expense checks in your Check Register. Balance your checkbook.
Make individual flexible personal purchases from a minimum of four (4) to six (6)
different Virtual Enterprise companies monthly to keep money flowing in the virtual network.
Flexible Personal Purchases should include, but not limited to, the following:
EXPENSE: COMPANY:
Entertainment (CDs, DVDs, concerts, etc.) Various VirtuCompanies
Clothing, Jewelry, Shoes Various VirtuCompanies
Investments (401Ks, IRAs, Stocks, etc.) Various VirtuCompanies
Car Purchase or Lease Various VirtuCompanies
Personal Items (Stationary, Make-Up, etc.) Various VirtuCompanies
Gifts (Flowers, Toys, Baskets, etc.) Various Virtu Companies
Electronics (TVs, VCRs, Computers, etc.) Various Virtu Companies
Sporting Goods (Skate Boards, Skis, etc.) Various Virtu Companies
Write checks for personal purchases and electronically transfer purchase amount(s) to
the various Virtu Companies you have bought from upon receipt of payment invoice. Record
all of these purchases upon payment in your Check Register and balance your checkbook.
Upon receiving your first monthly paycheck (by November 30th), you will be required
to do the following:
Deposit your paycheck in your company's local branch bank with the branch bank
manager.
Follow your weekly and monthly budget for fixed living expenses and flexible personal
purchases to pay bills for December. NOTE: It is possible that these amounts, fixed and
flexible, may change throughout the year.
You will be responsible for depositing your paychecks and paying your bills each month,
November through May. The responsibility of maintaining your personal finances is important
in "real-life" and equally important in the virtual world. Therefore, maintaining your virtual
personal finances will be worth ____% of your first semester grade and ____% of your
second semester grade.
PERCENTAGE CHART FOR EXPENSES
Percentages are always changing due to income and family. However, a general rule is
that the more money earned, the less percentage for food and rent if you are a single
person. The proposed budget should be divided into 2 categories: Fixed and Flexible. Fixed
expenses are costs that are predictable and occur regularly in your Virtual Enterprise
monthly and weekly expenses. Flexible expenses fluctuate in amount and many occur less
regularly. The following is an example of percentages for individual categories for a single
person that earns about $20,000 a year (if more or less is earned, then there would be
adjustments to the percentages):
Fixed Monthly VE Living Expenses:
Rent or mortgage payment 22% (may range from 12%-22%)
Renters Insurance 1.2% (may range from 0.3%-1.2%)
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Utilities* 6.7% (may range from 6.4%-7.1%)
*Electricity, Gas, Water, Telephone, Cable TV (Note: Check web sites for examples of
individual costs for these utilities.
The percentage given is for all utilities. You may want to wait and see what electricity bill is
first, then adjust other payments.)
Car Insurance* Will vary as to type of car, year, etc.
*You may use your current car insurance rates or check web sites for examples of car
insurance costs.
Savings 10% (increase as able)
*Car Purchase (personal monthly payment) 5.5% (may range from 5.5%-8.1%)
*Investments (personal monthly payment) 5.5% (may range from 5.5%-10%)
Fixed Weekly VE Living Expenses:
Food* 13% (may range from 13%-20%)
*Percentage given is for a month. Once you figure your monthly food costs, divide by 4 for
your weekly food costs.
*You need to consider meals away from home as possibly increasing your food costs or as
possible entertainment, especially if there is a VE company that fits this category.
Gas for car* 3.2% (may range from 3.2%-4.5%)
*Percentage given is for a month. Once you figure your monthly gas costs, divide by 4 for
your weekly gas costs.
*You may want to consider using the actual amount that you presently pay for gas per
week.
Household Supplies* 5.1% (may vary from 5.1%-7.6%)
*This may include cleaning supplies, paper goods, linens, etc.
*Percentage given is for a month. Once you figure your monthly supplies costs, divide by 4
for your weekly costs.
Flexible Weekly/Monthly VE Personal Expenses:
Entertainment* 4.7% (may range from 4.7%-5.5%)
*This expense may include items such as CDs, DVDs, concert/movie tickets, meals out, etc.
Clothing/Shoes/Jewelry 5.5% (may range from 5.2%-6.5%)
Personal Items* 3.2% (may range from 3.2%-4.8%)
*This expense may include items such as cosmetics, health care items, etc.
Gifts* 3.5% (may range from 2.3%-4.8%)
*This expense may include items such as artwork, baskets, parties, jewelry, etc.
Miscellaneous 9.3% (may range from 9.3%-10%
NOTE: Expenses are figured on net pay, not gross pay.
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VIRTUBANK STANDARD PAYMENT RATES FOR INDIVIDUALS
2006-07
California VirtuWater - 1010100100002046 $20 per person per Starting November 1 bill
th
VEC month must be paid by 10 of
each month
Southern California 1010100100002045 $50 per person per Starting November 1 bill
th
VirtuGas Company - month must be paid by 10 of
VEC each month
VirtuElectric- VEC 1000100100000446 $130 per person per Starting November 1 bill
th
month must be paid by 10 of
each month
VirtuGasoline - VEC 1010100100002049 ($2.50 a gallon) Starting November 1 bill
th
60 gallons must be must be paid by 10 of
purchased per month each month
per vehicle ($150.00
per month)
VirtuTelephone 1010100100002048 $25.00 per person per Starting November 1 bill
th
Company - VEC month (if not with a must be paid by 10 of
VE company for Cell each month
Phone)
The VirtuBank of 1010100100002050 Loan Payments and Starting November 1 bill
th
California - VEC Rental Payments (if must be paid by 10 of
not with a Virtual each month
Company)
VirtuProperty Apartment or Home Starting November 1 bill
th
Management - VEC Rental (if not with a must be paid by 10 of
Virtual Company) each month
VirtuCar Insurance of 1000100100002131 $300 per month per Starting November 1 bill
th
California - VEC vehicle (if not with a must be paid by 10 of
Virtual Company) each month
VirtuFranchise Tax 1010100100002052 California State Taxes Employees do not need to
Board of California - for paid to this pay this account unless
VEC account (State they owe money to CA for
Income Taxes) State Income Taxes
VirtuInternal Revenue 1010100100002051 Federal Taxes for Employees do not need to
Service - VEC paid to this account pay this account unless
(Federal Income they owe money to IRS for
Taxes) Federal Income Taxes
VirtuRed Cross - VEC 1000100100000443 All charitable Paid when needed monthly
contributions paid to
this account
The VirtuBank of 1010100100002050 Make any other Starting November 1 bill
th
California - VEC payment if you cannot must be paid by 10 of
find a place to pay for each month
a purchase
Virtual Internet 1000100100000572 $99.00 per person per Starting November 1 bill
th
Company - VEC month high speed must be paid by 10 of
internet service (if not each month
with a Virtual
Company)
Virtual Cable TV 1000100100000570 $99.00 per person per Starting November 1 bill
th
Company - VEC month cable TV. must be paid by 10 of
Service (if not with a each month
Virtual Company)
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