Non-student (External) Accounts Receivable System

Non-student (External)Accounts Receivable System

NON-STUDENT A/R

INTRODUCTION

• Current Indiana University System Overview

• Kuali A/R Committee Progress

• Enhancements

• Questions and Contact Information

NON-STUDENT A/R

Indiana University A/R Processing

• Decentralized system allows departments to manage their own receivables

• Payments are sent to a lockbox which is processed centrally

• Accounting entries are automatically generated through Edocs which can be routed for approval or as an “FYI”

• Not used for student receivables or internal billings (For information on Student Billings, please attend the Kuali Student session #11)

NON-STUDENT A/R

• Billing Organization– Each department that bills external

customers:• Print and mail invoices• Monthly analysis of receivables• Responsible for collection of invoices• Responsible for write–off of uncollectible invoices

NON-STUDENT A/R

• Processing Organization – covers many billing organizations– One for each lockbox using the AR system– Centralized location for receipts– Apply payments which are processed through a

clearing account– Set up new billing orgs– Resolve problems– Reconciles payment clearing account– Central Administration Bloomington approves

Customers & new addresses

NON-STUDENT A/R

• A/R Processing– Billing Org generates & mails invoice– “Remit to” address with tear strip is provided

with invoice– Customer mails payment with strip to lockbox.– Bank transmits funds to appropriate clearing

account sends paperwork to processing org– Processing Org applies funds to invoice or

allocates to an account

NON-STUDENT A/R

• A/R DOCUMENTS – Customer (CUS)—Billing or Proc Org– Invoice (INV)—Billing or Proc Org– Credit Memo (CRM)—Billing or Proc Org– Cash Control (CTRL)—Proc Org– Application (APP)—Proc Org– Organization Options and Accounting

Defaults (OOPT & OADF) – Proc Org

NON-STUDENT A/R

• Customer Document (CUS)– Create new customer (Billing or Proc Org)– Add new address (Billing or Proc Org)– Modify an existing customer (Proc Org only)– Change an address (Proc Org only)

Routes for approval thru central administration

Standard rules for customer names

NON-STUDENT A/R

• Customer Document (CUS)

NON-STUDENT A/R

• Customer History Inquiry

NON-STUDENT A/R

• Invoice (INV)– Department can use multiple accounts and

income object codes on one invoice– Receivable is recorded on one object code– Discount feature available for each line of

invoice– Error Correction option reverses entire invoice– Template feature allows use of existing

invoice to create new invoice

NON-STUDENT A/R

• Invoice Document

NON-STUDENT A/R

• Credit Memo (CRM)

– Used for both write-offs and issuing credit – differentiated by object code

– Restricted to a single account and object code

NON-STUDENT A/R

• Credit Memo Document

NON-STUDENT A/R

• Cash Control Document (CTRL)– Auto-generated by bank if check matched to

invoice– Links deposit of funds in lockbox to App doc– Routes to proper processing org– CTRL does not create any general ledger

entries (App & Ref docs create entries)– Works with various payment types:

• Cash Wire• Credit Card Check

NON-STUDENT A/R

• Cash Control Document

NON-STUDENT A/R

• Reference Document– Creates general ledger entry for total amount of Cash

Control Document• Debits cash and credits unapplied cash on the A/R Clearing account

– Type of document created is driven by the medium type• Check = CR, Credit Card = GEC, Wire = DI, Cash = No ref doc created

• Application Document (APP)– Applies funds to invoices

• Debits unapplied cash and credits cash on the A/R Clearing account• Debits cash and credits A/R on the billing org’s account

– Applies credit memos to invoices

– Designates funds as non-A/R

NON-STUDENT A/R

• Application Document

NON-STUDENT A/R

• “Quick Apply” Screen

NON-STUDENT A/R

• “Apply Detail” Screens

NON-STUDENT A/R

• Organization Options and Accounting Defaults– Used to initially set up a billing organization– Connects billing organization with processing

organization– Used to set up invoice defaults for a billing

organization

NON-STUDENT A/R

• Organization Options and Accounting Defaults Screens

NON-STUDENT A/R

• A/R Functions– On-screen Aged Customer Listing– Customer Search– Lockbox Processing– Create Invoice Item Codes– Print Invoices in Batch

NON-STUDENT A/R

• A/R Functions Screen

NON-STUDENT A/R

Kuali A/R Sub-Committee

• All Kuali Partner Schools Represented

• Regular Meetings since October, 2005

• Functional Specification Documents Prepared

• Part of Kuali Release III

NON-STUDENT A/R

Enhancements

• Ability to Upload Customer Data from Various File Types

• Run A/R Aging Reports Retroactively for a Prior Date

• Include Open Credit Memos on Customer Billing Statement

• Recurring Invoices

NON-STUDENT A/R

Enhancements

• Ability to Record Income in One Account and A/R in Another and Ability to Use Multiple A/R Object Codes

• Ability to Use Multiple Banks

• Add Flexibility to the Body of the Invoice

• Track Unbilled Amounts

NON-STUDENT A/R

Enhancements• Sales Tax Functionality• Enhanced Credit Memo Processing• Separate Write-off Process• Invoice Data Feeds• Collection Module• Enhanced Processing of Refunds,

Overpayments, Misapplied Payments

Contact Information

• Mark Barton, University of Arizona bartonm@arizona.edu

• Anna Jensen, Indiana University anjensen@indiana.edu

• Eben Sutton, University of California, Davis

esutton@ucdavis.edu

NON-STUDENT A/R