Non-student (External) Accounts Receivable System.
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Transcript of Non-student (External) Accounts Receivable System.
NON-STUDENT A/R
Current A/R Processing Functions
• 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”
NON-STUDENT A/R
• Billing Organization:Department that provides goods and/or services to external customers. Responsible for creating and mailing invoices to customers. Each Billing Organization reports to a Processing Organization.
• Processing Organization:Centralized unit that processes payments for Accounts Receivable invoices created by one or more Billing Organization. Each Processing Organization has a bank lockbox to which customer payments are sent.
NON-STUDENT A/R
• A/R Processing Flow– 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
• 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
• Reference Document– Creates general ledger entry for total amount of Cash Control Document
GL entry: Cash (Proc Org) Debit
Unapplied Cash (Proc Org) Credit– 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 and credit memos to invoices and can also designate funds as
“non-AR”
GL entry: Unapplied Cash (Proc Org) Debit
Cash (Proc Org) Credit
Cash (Billing Org) Debit
Accts Receivable (Billing Org) Credit
NON-STUDENT A/R
• A/R Functions– On-screen Aged Customer Listing– Customer Search– Lockbox Processing– Create Invoice Item Codes– Print Invoices in Batch
Data Enhancements
• (AR/H2) Convert Customer Data to KFS A/R in bulk
• (AR/H3) Retrospective Aging Report
• Add an institutional setting:– Permit the user to enter a receivable
accounting line on the invoice document, or– Use the A/R object code from the Chart table
and the chart/account from the revenue accounting line (traditional IU FIS behavior) or
– Set the A/R object code based on the Sub-fund group of the revenue account (designated in System Parameters)
A/R Objt/Acct Flexibility
Invoice-level receivable
Based on an institutional setting, a new “receivable” tab may be available to the user.
Credit Memo
• Control enhancement– Requires entry of the original invoice before
any processing allowed
• Streamline processing
Requested for Release 4.0
• Statement/Invoice design (1,400 hrs)– Primarily to support extramural receivables
• Invoice feeding (1,000 hrs)• Support for centralized collection activity (1,800
hours)• Streamline of customer duplicate/overpayment
processing (700 hours)• Tracking of memo “unbilled” amounts (400
hours)