Transcript Title here - University of Minnesota

Billing and Accounts Receivable
FSUN Brown Bag
April 14, 2015
Handout
• Available at FSUN website
http://www.finsys.umn.edu/fsun/AR_Best_Practices.pdf
Order to Cash
Credit Analysis
and Customer
Maintenance
•Process customer setup/maintenance
requests & credit
applications
•Request credit checks
•Maintain customer
records
•Communicate results
to clusters
Order Processing
and Fulfillment
•Receive purchase
order from customer
•Manufacturing,
printing, picking,
packing, shipping
•Consultation
•Provide services
•Leasing/renting
Tasks completed in departments and clusters
Billing
•Prepare and enter
billing information
•Receive sales data &
billing information
from clusters
•Generate and
distribute invoices
•Provide support to
clusters in billing best
practices and system
configuration
Payment
Application
•Receive payments via
cash, check, EFT, or
payment card
•Interface from thirdparty payment
processors (lockbox,
bank, payment card)
•Apply payments
•Reconciliation
Services provided by Accounts Receivable
Collections
Accounting
•Generate and
distribute statements
of account
•Contact customers to
collect past due
amounts
•Research and resolve
AR discrepancies
•Generate and
distribute dunning
correspondence
•Compile aging reports
•Research and resolve
short-pays
•Process write-offs and
adjustments
•Sales Tax Reporting
•GL reporting and
reconciliation
Customer Set-up
• Personal or business address?
Customer Set-up
• E-mail addresses
– Used as a primary means of contacting
businesses and individuals
– Used for automatic follow-up on unpaid
invoices
– Automatic e-mailing of invoices coming
with the 9.2 upgrade
Purchase Order Numbers
ATTN:
SAMPLE EMAIL:
Customer ID: 5023487
Customer Name: ABC COMPANY
Dear JOHN SMITH
This Email is to inform you that Invoice 2082566134 for $258.00 is 16 days overdue.
Currently you owe $258.00 on this invoice.
Item Details:
Invoice
Line
Line Description
Qty
Unit Amount
Tax
LineTotal
2082566134
1
Mastitis
Cow/Quarter
Culture
43
$6.00
$0.00
$258.00
Please research and let me know when payment might be expected. ***TO PAY THIS INVOICE BY CREDIT CARD PLEASE GO
TO WWW.PAY.UMN.EDU*** If paying by check, please make payable to "Regents of the University of Minnesota" and mail to: Regents
of the University of Minnesota; NW 5960; PO Box 1450; Minneapolis, MN 55485-5960
Thanks,
Daryl
Accounts Receivable Services
University of Minnesota
612/624-0849
612/626-3969
Excel Billing Upload
Other Billing Tips
• Department printing of invoices
• Credit invoices
• Federal agencies
Banking Information & W-9
Checks Rec’d in Department
•
Write invoice number and/or
customer number on check
Misdirected checks
Payment Remittance
• Forward all remittance to:
[email protected]
Credit Card Payments
• pay.umn.edu
• 612-625-2392
Collections
•
•
•
•
•
•
•
Statements of account
Dunning e-mails
Telephone calls
Aging review
Third-party collection agencies
Revenue Recapture Program
Office of the General Counsel
Dunning e-mails
• Customer Groupings
– Customers grouped based on common follow-up
parameters and payment behavior
• Government Group (Federal, State, and local
government entities; schools and universities)
• Individual Group (individuals)
• Corporate (most everyone else)
Dunning e-mails
• Collection email verbiage
– Increasingly blunt, first, second, and third email wording
–
Please research and let me know when payment might be expected. ***TO PAY THIS INVOICE BY CREDIT CARD
PLEASE GO TO WWW.PAY.UMN.EDU*** If paying by check, please make payable to "Regents of the University of
Minnesota" and mail to: Regents of the University of Minnesota; NW 5960; PO Box 1450; Minneapolis, MN 554855960
–
Please let me know when payment can be expected for the above referenced invoice. If you have any questions or
need further information, don't hesitate to contact me…
–
Multiple emails have been sent requesting payment for the attached invoice - please give this matter the attention it
deserves. Please let me know when payment can be expected…
• Collection parameters for each group
– Days to first email follow up (15d overdue for CORP & IND, 35d overdue
for GOV)
– Days between subsequent email follow ups (7d)
Automated Collection Process
• Collection Monitor runs Mon – Fri at 2:00pm – emails
automatically sent
• Department and AR Services can place items on “HOLD” – no
further emails sent automatically
• Collector copied on all emails
• Follow up weekly on items with 4th email
• Conversation automatically added to item stating that an email
was sent
• No active email? Notification conversation added to item and
followed up manually
SAMPLE EMAIL:
Customer ID: 5023487
Customer Name: ABC COMPANY
Dear JOHN SMITH
This Email is to inform you that Invoice 2082566134 for $258.00 is 16 days overdue.
Currently you owe $258.00 on this invoice.
Item Details:
Invoice
Line
Line Description
Qty
Unit Amount
Tax
LineTotal
2082566134
1
Mastitis
Cow/Quarter
Culture
43
$6.00
$0.00
$258.00
Please research and let me know when payment might be expected. ***TO PAY THIS INVOICE BY CREDIT CARD PLEASE GO
TO WWW.PAY.UMN.EDU*** If paying by check, please make payable to "Regents of the University of Minnesota" and mail to: Regents
of the University of Minnesota; NW 5960; PO Box 1450; Minneapolis, MN 55485-5960
Thanks,
Daryl
Accounts Receivable Services
University of Minnesota
612/624-0849
612/626-3969
Third-party Collection Agencies
Accounts Receivable Services uses two 3rd Party
Collection Agencies
• Minnesota Department of Revenue (Primary)
• Used since September 2011
• Agency of choice when Social Security no. (individuals) or Tax
ID # (Orgs.) available
• Central Credit Services, LLC. (Secondary)
• Used since May 2014
• Do not require SSN or Tax ID
Third Party Collections
Process
• Third party referral begins when invoice reaches 120
days overdue and is deemed “uncollectible”
• Originating department ALWAYS contacted first
– collections, write-off, or continue effort?
• Collections letter sent to customer – 20 days to
respond
• No response – refer account to Agency
Aging Reports
• Aging by Chartfield
• UM Aging by DeptID Tree
0-30
Days
31-60
Days
61-90
Days
90+
Days
Other Reports
• Accounts Receivable Status by
Chartstring
Other Reports
• Accounts Receivable Activity by Invoice
Transaction Detail
Transaction Detail
• Journal ID
– BI = Billing Module
– ARR = AR Module – Receipt
– ARM = AR Module – Maintenance
– ARD = AR Module – Direct Journal
(primarily Departmental Deposits)
– CCF = Credit Card Fees
– MC = Merchant Fees, chargebacks
Upgrade Changes
•
•
•
•
•
•
Invoice Button
Attachments
E-mailing of Invoices
Reprinting Invoices
Adjust Bills – Approval
Work Centers
Thank you! - Questions?
• Nicole Berg
– 612-625-0847
– [email protected]
• Steve Patrician
– 612-624-5475
– [email protected]
• Darla Schroeder
– 612-626-7215
– [email protected]
• David Laden
– 612-624-0929
– [email protected]