Transcript Billing and AR in FAST - University of South Florida

Billing and AR in FAST
Billing Is Used For Two Purposes
General Ledger
(business unit USF01)
AR Module
Sponsored Research
AR (business unit
GRT01)
Grants Module feeds
Billing Module
Sponsored research
customers
Billing Module
PGI billing customers
AR Module
Commercial AR
(business unit USF01)
Billing Module
Commercial
customers
The Commercial Stream
• It all begins with an approved EBA
– Educational Business Activity (EBA) approval by UCO is required
– It gives authority to conduct a business activity and helps USF comply
with UBI (unrelated business income) requirements
– It defines what you are selling, your customer base, your costing, your
management structure
– Controller’s Office will create a unique auxiliary fund to which you
deposit revenue and pay expenses
– Find EBA information on the Controller’s Office web site
www.usf.edu/controller or on USF Business Processes
www.usf.edu/businessprocesses
The Commercial Stream
• Commercial (external) customers include
– All DSOs like Moffitt, USF Foundation, USF Research Foundation, and
the Sun Dome activities
– Plus all private businesses, state universities, state agencies, counties,
cities and individuals
• Hint
– The billing module is not for billing other USF departments
– Use a journal entry form for interdepartmental billings
The Billing Process
Disbursement
1 Department makes the
sale to the
customer
7 USF accepts cash,
checks, or bank cards
2 UCO creates the
customer ID
6 Collect the money
from the customer
5 UCO prints the invoice
and sends to
Customer
3 Departments create the
customer invoice
4 Overnight
processing
occurs
Who
Who Does
Does What
WhatTask?
Task?
• Departments
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Request EBA authority
Find the customers
Provide the service
Request customer setup
Create the billings
Pursue collection from
customers
– Reconcile billings,
payments, and AR balances
– Request refunds and writeoff
• University Controller’s
Office
– Creates and modifies
customer records
– Manages nightly processing
– Prints and mails invoices to
the customer
– Creates all credits
– Assists with collection from
customers
– Provides training
New Customers and Customer Updates?
• Complete a simple one page request form
– To request a new customer record
– To request an update to an existing customer record
• Mail the form to ARCUST (find it in Outlook)
– We handle the request through RNS
– We will notify you when the customer is setup
• Find the form on our web site
– www.usf.edu/ucotraining (look under forms)
About Invoices
• Invoice Ids are standardized
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They begin with the department billing source
The bill source is a three letter prefix representing your auxiliary
Bill source is followed by a dash
Dash is followed by a five digit number
• Auto-assigned by FAST beginning with the number 00001
• Example of an IT invoice number
– ITS-02000
About Invoices
• Invoices are printed on plain paper
• Invoices have everything the cashier needs to identify the
payment (customer ID, invoice number, and amount)
• Customers paying by check are asked include a copy of the
invoice with their payment to a USF lock box
Cornerstones
• The customer is the basis for billing
• Customers have ID’s based on the department
– Always the bill source followed by four digits
– The digits are auto-assigned beginning with 1001
• Example of a customer ID for IT
– ITS1007 Information Technology Services customer # 1007
Cornerstones
• Charge codes identify what you sell to the customer
– They appear on the invoice
– They begin with the three letter bill source
– The bill source is followed by a dash and a description
• Example of a charge code for a USFSP auxiliary
– CAC-COMREV
– This is the charge code for Campus Activities Center revenue
Cornerstones
• Distribution codes are the chart field strings that drive the
accounting entries
• They are attached to every charge code
• The chart fields:
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Operating Unit
Fund ID
Account
Department ID
Product
Initiative
Required field
Required field
Required field
Required field
Must be populated but may be 000000
Not used but must have 7 zeroes
Cornerstones
• Distribution codes begin with the billing source ID
followed by an alpha/numeric description
• For example Campus Activities Center has charge code for
services they offer; this is the distribution code behind it
Cornerstones
• Hint
• Always use only your department’s billing source for
– Customer ID
– Invoice ID
– Charge code ID
• Request new charges codes and distribution codes and
updates to existing codes from [email protected]
– Find the request form on www.usf.edu/ucotraining
Revenue Budgeting
• You must forecast your revenue through the Budget
Module (Commitment Control)
– Budget by individual chart field string
– This includes billings to outside customers and billings to other
USF departments
Revenue Budgeting
• There are consequences…
– You can finalize the billing, print it, and send it to the customer
– But it will not post to the GL
– Cashiers will be unable to post payments against the invoice
• If billings fail budget checking…
– You will receive an email to remind you to make the necessary
budget adjustment
– The email will have the accounting information that you need
Sales Tax
• Your customers may or may not be subject to Florida sales
tax
– In order to exempt a customer from sales tax, you must obtain a
copy of that entity's "Florida Certificate of Exemption" which is
Form DR-14. That is the ONLY way we can extend to anyone an
exemption from Florida sales tax. If we have no Form DR-14, the
default is to charge sales tax on the sale of tangible personal
property or rentals.
• If you have any questions, contact Michelle Verdisco
(813.835.2264 or look for her in Outlook)
Sales Tax
• Some of what you sell may be subject to Florida sales tax
• It is a complex set of law that can have profound impact on
USF
• Visit the Controller’s Office web site (click Tax Advisory)
or contact Michelle Verdisco (813.835.2264 or look for her
in Outlook)
UBI (Unrelated Business Income)
• To ensure compliance with our non-profit status, we must
correctly identify all unrelated business activity
• It is a complex set of law that can have profound impact on
USF
• Record amounts of UBI for each line on the “Line Misc
Info” page
• Visit the Controller’s Office web site (click Tax Advisory)
or contact Michelle Verdisco (813.835.2264 or look for her
in Outlook)
Customer Notes
• To help your customer and provide them the information
they need to expedite payment, use customer notes
• Add a header note or individual line note
• Provide information like:
– The customer’s PO number
– Date of service, type of service
– Names of individuals
Collecting Accounts Receivable
• USF AR is aged
– 20 day “grace” period
– 0-30 days, 31-60, 61-90, 90 days and over
• During the first 90 days of aging…
– Department attempts collection
• By calling customer
• By e-mailing customer
• By sending a copy of the invoice to the customer
The AR Office Can Help You
• When the debt reaches 90 days…
– The AR Office reviews 90 day AR items
– AR Office contacts the department to discuss options
– Consider using our contracted collection agency
AR Reporting
• AR aging tools include
– An AR aging report in the AR module (pdf format)
– An AR aging report that UCO sends out quarterly (Excel format)
– Public queries
Common GL Accounts in Billing
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10011
10061
10091
12010
44###
Payment made by cash or check
Payment made by credit card
Payment made by EFT
Commercial Accounts Receivable-FAST
Commercial revenue account series
Professional Collection Is An Option
• If you use the contracted collection agency…
– The agency charges a percentage fee contingent upon actual
amount collected
– You may pass this fee on to the customer only if adequate advance
written notification has been given to the customer prior to the sale
– Otherwise, the department must pay for the collection fee from
sources of your choosing
Correcting/Adjusting Invoices
• Customers may need to be issued a credit due to
– A duplicate billing
– An incorrect billing (wrong amount, quantity, etc.)
• Only the UCO AR office may create credits – Separation
of duties issue
• Prepare credit requests on the billing correction form
– Find it on the Controller’s training web site;
www.usf.edu/ucotraining (look under forms)
What About Bad Debts?
• Write-off should be considered only after all collection
efforts have been unsuccessful
• Departments should carefully document collection effort
• Use the standard format for requests (contact UCO AR
Office)
• Submit write-off requests to the UCO AR Office
What About Bad Debts?
• With the request, include:
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List of all invoices with invoice ID and Customer ID
Customer name
Invoice date
Original invoice amount
Amount to be written off
Description of collection effort
Write-off Entries
• The UCO AR Office will review the request and obtain the
required approval of the USF Controller
• The UCO AR office will create the write-off entries
• You will be notified when the write-off action is completed
How Can The Customer Pay
• Customers are asked to return a copy of the invoice with
check payments directly to the USF Lock Box
• The Lock Box address is:
– PO Box 864568
– Orlando, FL 32886-4568
• Only a USF Cashier Office may handle payments made in
person at USF
Alternate Payment Methods
• Customers may also pay by credit card
• We accept VISA, MasterCard, American Express or
DiscoverCard
– Customer may pay on-line (preferred method)
• The web site address is www.usf.edu/commacct
• Customer will need to identify the invoice number and customer ID
• This is for invoices of $10,000 or less
– Customer may pay at USF Tampa
• Pay at the kiosk in the cashier lobby using the commercial account portal
• Customer will need to identify the invoice number and customer ID
• This is for invoices of $10,000 or less
Alternate Payment Methods
• Customers may also pay by EFT
• State agencies, government units, and other state universities
should pay by either EFT or check; they should not pay by
credit card
• To setup a customer for EFT/ACH
– Find the EFT/ACH Authorization Form on the UCO/Accounting
Services web site
– http://usfweb2.usf.edu/uco/accounting/gaformsdocs.asp
What if you receive a payment in the mail?
• Take the payment immediately to the cashier office
• Do not send to the cashier by campus mail
What if Customer Payment Does Not
Clear?
• If the customer check is returned NSF by the bank
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All returned checks are managed by the UCO (Controller’s Office)
Amy Murray is the key person
A new receivable is created
A series of letters are sent to collect from the customer
Customer is charged a flat $25 fee
Applying a Payment To An Invoice
• To apply a payment, Cashier must have
– A customer ID
– An invoice ID
• Cashiers apply the payment and close the invoice
– Payment application automatically closes the invoice
– The cash will be added to your auxiliary fund
If The Cashier Cannot Identify A Payment
• The Cashier will research to the best of their ability
• If a check can not be identified, it is recorded by journal
entry to suspense: fund 18570, GL code 12120
• When the check is finally identified, it will be corrected
and correctly applied
• Unidentified payments, both checks and EFT, may be
viewed on the UCO web site under Library of Resources
What About Customer Refunds?
• Customers may overpay or pay twice
• Departments request refunds to customers
• Before requesting a refund, determine that there are no
other open (unpaid) invoices for that customer
• Use the customer refund form on the UCO web site
• Be sure to correctly identify the original deposit
• Submit refund requests to [email protected]
Don’t Forget To Reconcile
• Reconcile invoices/billings
– Confirm that everything that should have been billed, was billed
– Confirm that the billing amounts were correct
– Confirm that billing adjustments have posted correctly
• Reconcile customer payments
– Confirm that the payments were applied to the correct invoices
• Do this monthly
Where Do You Find Information
• In Finance Mart
– The Balance Sheet has deposits and customer payments
– Financial Report Summary and Revenue Detail have billing info
• In the Billing module
– Billing/Review Billing Information/Details for detail invoice information
• In the AR module
– Accounts Receivable/Receivables Analysis/Aging for AR reports
– Accounts Receivable/Customer Information/Item Information for invoice
payment details
Let’s Get To Work !