Introduction to Non-Student Accounts Receivable at Indiana University

1. Non-student (External)Accounts Receivable System

2. NON-STUDENT A/R INTRODUCTION • Current Indiana University System Overview • Kuali A/R Committee Progress • Enhancements • Questions and Contact Information

3. 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)

4. 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

5. 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

6. 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

7. 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

8. 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

9. NON-STUDENT A/R • Customer Document (CUS)

10. NON-STUDENT A/R • Customer History Inquiry

11. 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

12. NON-STUDENT A/R • Invoice Document

13. 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

14. NON-STUDENT A/R • Credit Memo Document

15. 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

16. NON-STUDENT A/R • Cash Control Document

17. 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

18. NON-STUDENT A/R • Application Document

19. NON-STUDENT A/R • “Quick Apply” Screen

20. NON-STUDENT A/R • “Apply Detail” Screens

21. 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

22. NON-STUDENT A/R • Organization Options and Accounting Defaults Screens

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

24. NON-STUDENT A/R • A/R Functions Screen

25. 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

26. 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

27. 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

28. 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

29. NON-STUDENT A/R 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