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External Billing Procedures: Information Session. Agenda. Logistics. Participate Ask questions Turn off cell phones One person at a time Location of washrooms Emergency procedures. Session Objectives. At the completion of this session, you will be able to:

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External Billing Procedures: Information Session

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Ask questions

Turn off cell phones

One person at a time

Location of washrooms

Emergency procedures

session objectives
Session Objectives

At the completion of this session, you will be able to:

Explain why the University is implementing the new Cash and Billing Policy

Explain the key points within the External Billing procedures

Manage and process invoices effectively and efficiently

Explain where to go for assistance and help on the policy and procedures

session structure
Session Structure



why is the university implementing a new cash and billing policy
Why is the University implementing a new Cash and Billing Policy?

Auditor General’s Report

Address potential fraud issues

Provide clear guidelines and proper controls to ensure employees are not placed in a harmful position

Decentralized processes

Processing of invoices is managed in a variety of ways

Results in lack of internal controls

Results in invoices not being processed correctly

Increases AR effort in matching payment and invoice

why is the university implementing a new cash and billing policy1
Why is the University implementing a new Cash and Billing Policy?

Clarify accountability

Implement best practices

Improve internal controls

Ensure customers are credit worthy

Ensure the University is compliant with legislation

Create efficiency through standardization of processes and procedures

University invoice format standardized

how do these changes impact me
How do these changes impact me?

You may need to:

Ensure you are aware of the changes and new procedures and have a clear understanding of your role and responsibility

Communicate to your Department staff the implications of the policy

Update your internal processes to align with the policy and procedures

topic 2 key points
Topic 2: Key Points


Approval of Invoices

Granting Credit

Cost Recovery

Responsibilities of a Billing Unit

Wire Payments



All billing / invoices are to be processed through the Finance, Supply Chain Management and Research (formerly PeopleSoft) system (FSR), Billing Module

Key points

Word documents or manual invoices are not an acceptable format

If billing outside of FSR in another system,contact the AR Department

Exceptions: Tuition, Donations, Retail Salesand approved exceptions

approval of invoices
Approval of Invoices

Department Heads

Individual with the authority for approval (e.g., Manager, Researcher, etc.)

Approves all invoices created for Faculty / Department

Two methods

Recorded on invoice’s supporting documentation

For example: Signed Contract, PO Document

Documented on a pro forma invoice (printed copy of invoice prior to invoice being set to ready in FSR)

Applicable supporting documentation attached to approved pro forma invoice

granting credit
Granting Credit

Department chooses to invoice

Customer rather than obtain payment at time good / service, or

When a recoverable cost is paid

Decision to extend credit rests with the accountable Department Head

granting credit1
Granting Credit

Department / Department Head responsible to

Determine credit worthiness of that customer

Be responsible for associated credit risks

Charges to be charged to Department bad debt account

Notify AR of any changes to customer information

Only those authorized by AR may grant credit to a customer

Request submitted in writing to Accounts Receivable using the Request for New AR Customer/Change in AR Customer Information form

New customer is created in FSR so that the invoice can be processed properly

cost recovery
Cost Recovery

With a Markup:

If amount is > amount paid = recovery with a mark-up (sale)

GL account credited must be Revenue account and not an expense account

GST is charged as it would be for a normal sale of good/service

Without a Markup:

If amount is not > amount paid = recovery without a markup (true recovery)

GL Account credited must be expense account to which original charge posted

Unrecoverable portion of GST included in recovery as part of base expense; recoverable portion not to be included

No GST charged on the invoice

cost recovery gst example
Cost Recovery: GST example

Without a Markup:

Original Cost = $100 + $5 GST

Amount charged to the expense account is $100 + $1.67 (1/3 unrecoverable portion of GST)

Amount invoiced as a recovery = $101.67

No amount should be included as GST on the invoice


gst treatment
GST Treatment

GST Treatment

Department is responsible to ensure correct GST assessment of invoice

Five applicable GST assessment codes

FSR Billing Module automatically calculates the applicable GST depending on the code assigned

Ensure you check the default code prior to overriding

Driven by customer setup and address and assigns GST treatment based on address

Contact AR if unsure of how to apply GST

responsibilities of billing unit
Responsibilities of Billing Unit


Bill only within the current month

Bills outstanding at month end, must be resolved by 11:00 a.m. on the first business day of the following month

Unprocessed items will be deleted by AR

New invoices are not to be backdated to prior period

Posting after the period or backdating causes significant system errors

Invoice Request Form

AR can provide billing services for those Faculties / Departments who process < 10 billings per year

Invoice Request Form should be completed and forwarded to AR


All payments are to be sent directly to Accounts Receivable

Internal mail should not be used

Department advises customer to send future paymentsdirectly to AR

Hand-delivered to AR

Should not be deposited at the Cashier’s Office or included in Departmental deposits

Invoice number

System generated alpha numeric characters

Cheques must be payable to the University of Calgary

incoming wire payments
Incoming Wire Payments

Banking Information

Only AR is authorized to communicate University banking information

Against policy to forward University’s banking information to a Department, Faculty or Customer

Requests must be send to AR via Request for Banking Information Form


Accounts Receivable sends out form to customer which outlines all information AR requires to accept and allocate payments


Department Collections

Expectations and directions are clearly identified through procedures

Aged Receivables Report

Communicate back to AR collection activities that have been conducted and status

Resulting bad debt charged to Department initiating invoice

next steps where to go for help
Next Steps: Where to go for Help

Financial Services Website




next steps
Next Steps

Accounts Receivable is currently assessing training requirements

Future Training

Instructor-led courses

Online self-study courses

Reference material

session evaluation
Session Evaluation

Please complete the session evaluation