Accounts Receivable Management: Difference between revisions
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[[General Accounting]] | [[SBIR/STTR Program Participation]] | [[Supplemental Compensation Plan]] | [[Facilities Management/Planning]] | [[Purchasing]] | [[ | [[General Accounting]] | [[SBIR/STTR Program Participation]] | [[Supplemental Compensation Plan]] | [[Facilities Management/Planning]] | [[Purchasing]] | [[Strategic Communications]] | [[Facility Identification]] | [[Serving Alcoholic Beverages]] | [https://nebraska.edu/-/media/unca/docs/offices-and-policies/policies/policies/university-of-nebraska-travel-policy.pdf NU Travel Policy] | [[Travel Restrictions]] for Nebraska Medicine and UNMC | [https://fleetmanagement.unl.edu/policies NU Fleet Management Policies] | [[Reproducing Copyrighted Materials]] | [[Bank Card Processing]] | [[Student Training Agreement]] | [[Volunteer]] | [[Cash Handling]] | [[Fraud]] | [[Assigning Research Lab Space]] | [[Space Scheduling and Fundraising]] | [[Academic Personnel Records]] | [[Cell Phone]] | [[Off-campus Graphic Design and Related Printing]] | [https://wiki.unmc.edu/index.php/Off-campus_Photography Off-campus Photography, Videography] | [[Tax Exempt Financing and Tracking of Both Qualified Use and Non-Qualified Use of Research Space]] | [[Secondary Logos]] | [[Social Media]] | [[Sensitive Equipment Tracking]] | [[International Visitors]] | [[Accounts Receivable Management]] | [[Regulations on the Use of University Facilities and Grounds]] | |[https://nebraska.edu/-/media/unca/docs/offices-and-policies/policies/policies/bf-01-moving-relocation-policy.pdf University of Nebraska Moving Relocation Policy] | [[Tuition Remissions]] | [[Collections Management]] | [[Web Governance]] | ||
<br /><br /> | <br /><br /> | ||
Policy No.: '''6084'''<br /> | Policy No.: '''6084'''<br /> | ||
Effective Date: '''09/26/13'''<br /> | Effective Date: '''09/26/13'''<br /> | ||
Revised Date: ''' | Revised Date: '''03/02/23'''<br /> | ||
Reviewed Date: ''' | Reviewed Date: '''03/02/23''<br />''' | ||
<br /> | <br /> | ||
<big>'''Accounts Receivable Management Policy'''</big> | <big>'''Accounts Receivable Management Policy'''</big> | ||
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==Definitions== | ==Definitions== | ||
'''Accounts Receivable (A/R):''' Money owed by entities to UNMC from the sale of products and/or services provided.<br /> | '''Accounts Receivable (A/R):''' Money owed by entities to UNMC from the sale of products and/or services provided.<br /> | ||
'''Biller:''' The person submitting the details to be invoiced (products/services rendered, amount, cost object and G/L account to credit money once collected, along with any supporting documentation and special instructions for invoicing).<br /> | '''Biller:''' The person submitting the details to be invoiced (products/services rendered, amount, cost object and G/L account to credit money once collected, along with any supporting documentation and special instructions for invoicing).<br /> | ||
'''Invoice:''' A UNMC | '''Invoice:''' A UNMC Accounts Receivable document generated from UNMC Management Resources System provided to an entity describing the products/services provided, the amount due and the requested date for payment.<br /> | ||
[ | [https://wiki.unmc.edu/images/e/e1/Sample-AR-invoice.pdf Sample Invoice] | ||
==Policy== | ==Policy== | ||
Invoices are to be created | Invoices are to be created within the UNMC Management Resources system. Billers using the system submit their invoice detail online, assign a cost object and G/L account to the invoice for deposit purposes (posting to SAP) and attach supporting documentation as needed for the customer to process/remit payment to UNMC.<br /> | ||
The intent of this system is | The intent of this system is only for '''external''' customers. External customers are defined as entities located off UNMC’s campus and not part of the University of Nebraska system. Examples include Creighton University, the Veterans Administration (and other federal governmental agencies), Methodist Hospital and Omaha Public Schools.<br /> | ||
Internal charges by UNMC Departments and Intercampus billings that can be addressed via SAP journal entry are transactions not to be accounted for using the A/R subsystem. UNMC | Internal charges by UNMC Departments and Intercampus billings that can be addressed via SAP journal entry are transactions not to be accounted for using the A/R subsystem. UNMC departmental billing phone charges, dietary tickets, printing services and intercampus tuition billings (billed via SAP journal entry) are examples.<br /> | ||
State agencies with invoices paid via Interagency Billing Transfer (IBT) qualify as external customers that | State agencies with invoices paid via Interagency Billing Transfer (IBT) qualify as external customers that should be billed through the A/R system. Examples would include the Nebraska Department of Health & Human Services, Medically Handicapped Children’s Service, the Nebraska Department of Education and other state agencies receiving state funding that clear invoices using IBTs.<br /> | ||
Departments are responsible for generating accurate, timely invoices to external customers for non-sponsored receivables. | Departments are responsible for generating accurate, timely invoices to external customers for non-sponsored receivables. Sponsored Programs Accounting (SPA) is responsible for generating accurate, timely invoices to external customers for sponsored receivables.<br /> | ||
Sponsored Programs Accounting (SPA) is responsible for generating accurate, timely invoices to external customers for sponsored receivables.<br /> | |||
Other specific invoicing requirements may render the A/R subsystem not applicable/efficient for use. For example, contractual terms may require wording, terminologies, etc. that are unworkable with the current invoice template. These exceptions will be reviewed on a case-by-case basis by the Controller’s Office.<br /> | |||
Other specific invoicing requirements may render the A/R subsystem not applicable/efficient for use. For example, contractual terms may require wording, terminologies, etc. that are unworkable with the current invoice template. These exceptions will be reviewed on a case by case basis by the | |||
The standard payment term to be applied to invoices generated in the A/R subsystem is net 30 days. | The standard payment term to be applied to invoices generated in the A/R subsystem is net 30 days. | ||
===Exceptions=== | ===Exceptions=== | ||
As mentioned above, the | As mentioned above, the UNMC Management Resources system is not designed for internal (on-campus) or intercampus charges. Examples would include UNMC departments billing each other (phone charges, copy charges, dietary tickets, etc.) and intercampus charges (UNO, UNL, UNK, etc.). Transactions that can be accounted for solely within SAP via journal entry are not invoiced via the UNMC Management Resources system. | ||
==Access to Management Resources== | |||
A training class is required to obtain access to the UNMC Management Resources system. Billers can obtain access to invoices via the UNMC Management Resources system with a request to the General Accounting Office only after training is completed. General Accounting reserves the right to remove access if deemed necessary. Additional training will be required to regain access. | |||
==Entering Invoices Within Management Resources== | ==Entering Invoices Within Management Resources== | ||
Billers can | Billers can submit invoice detail to approved customers and contact information. The subsystem is monitored daily for newly entered customers and contacts. <br /> | ||
The | The General Accounting Office will monitor outstanding invoices based on the timing listed in the collection section listed below, following up with billers as needed and processing payments as they are received.<br /> | ||
The | The UNMC Management Resources system will interface with SAP as payments are processed. | ||
==Collection and Write-off of Delinquent Balances== | ==Collection and Write-off of Delinquent Balances== | ||
===Collection Procedures for Invoices Outstanding=== | ===Collection Procedures for Invoices Outstanding=== | ||
* | AR billers are responsible for collection of their invoices.<br> | ||
* | |||
* | Collection Procedures for Invoices Outstanding passing the assigned payment term: | ||
*Between 30-60 days – A/R Biller will send second request billing to customers | |||
*Greater than 90 days – A/R Staff will send aging report to AR Biller and request collection status | |||
*Greater than 180 days – A/R Staff will send aging report and notification to A/R biller with college deans copied | |||
*Invoices outstanding greater than 180 days may be assessed service charges determined by the vice chancellor for business, finance and business development | |||
*Retainage balances are exempted from this procedure | |||
===Write-off of Delinquent Balances=== | ===Write-off of Delinquent Balances=== | ||
Delinquent balances greater than 365 days will be written off from the A/R system. Write-offs must be submitted to the vice chancellor for business, finance and business development for approval. The vice chancellor will determine if written off balances will be: | |||
*Assessed service charges | |||
*Turned over to campus legal counsel | |||
*Turned over to a collection agency | |||
*Retained by UNMC General Accounting Office | |||
==Non-compliance== | ==Non-compliance== | ||
Payments received by UNMC outside of this policy (not invoiced | Payments received by UNMC outside of this policy (not invoiced via the UNMC Management Resources system) may not be recorded to departmental accounts in a timely manner. Complications arise when electronic payments are received with no supporting backup. | ||
==Additional Information== | ==Additional Information== | ||
*[mailto: | *[mailto:accountsreceivable@unmc.edu Accounts Receivable] | ||
*[http://wiki.unmc.edu/images/7/73/Accounts_Receivable_Procedures.pdf Accounts Receivable Management Procedures]<br /> | *[http://wiki.unmc.edu/images/7/73/Accounts_Receivable_Procedures.pdf Accounts Receivable Management Procedures]<br /> | ||
<br /> | <br /> | ||
This page maintained by [mailto: | This page maintained by [mailto:mhurlocker@unmc.edu mh]. | ||
Latest revision as of 14:33, August 19, 2024
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General Accounting | SBIR/STTR Program Participation | Supplemental Compensation Plan | Facilities Management/Planning | Purchasing | Strategic Communications | Facility Identification | Serving Alcoholic Beverages | NU Travel Policy | Travel Restrictions for Nebraska Medicine and UNMC | NU Fleet Management Policies | Reproducing Copyrighted Materials | Bank Card Processing | Student Training Agreement | Volunteer | Cash Handling | Fraud | Assigning Research Lab Space | Space Scheduling and Fundraising | Academic Personnel Records | Cell Phone | Off-campus Graphic Design and Related Printing | Off-campus Photography, Videography | Tax Exempt Financing and Tracking of Both Qualified Use and Non-Qualified Use of Research Space | Secondary Logos | Social Media | Sensitive Equipment Tracking | International Visitors | Accounts Receivable Management | Regulations on the Use of University Facilities and Grounds | |University of Nebraska Moving Relocation Policy | Tuition Remissions | Collections Management | Web Governance
Policy No.: 6084
Effective Date: 09/26/13
Revised Date: 03/02/23
Reviewed Date: 03/02/23
Accounts Receivable Management Policy
Basis for Policy
It is the policy of the University of Nebraska Medical Center (UNMC) to track all invoices to external customers for timely payment and accounting within a central Accounts Receivable System.
Definitions
Accounts Receivable (A/R): Money owed by entities to UNMC from the sale of products and/or services provided.
Biller: The person submitting the details to be invoiced (products/services rendered, amount, cost object and G/L account to credit money once collected, along with any supporting documentation and special instructions for invoicing).
Invoice: A UNMC Accounts Receivable document generated from UNMC Management Resources System provided to an entity describing the products/services provided, the amount due and the requested date for payment.
Policy
Invoices are to be created within the UNMC Management Resources system. Billers using the system submit their invoice detail online, assign a cost object and G/L account to the invoice for deposit purposes (posting to SAP) and attach supporting documentation as needed for the customer to process/remit payment to UNMC.
The intent of this system is only for external customers. External customers are defined as entities located off UNMC’s campus and not part of the University of Nebraska system. Examples include Creighton University, the Veterans Administration (and other federal governmental agencies), Methodist Hospital and Omaha Public Schools.
Internal charges by UNMC Departments and Intercampus billings that can be addressed via SAP journal entry are transactions not to be accounted for using the A/R subsystem. UNMC departmental billing phone charges, dietary tickets, printing services and intercampus tuition billings (billed via SAP journal entry) are examples.
State agencies with invoices paid via Interagency Billing Transfer (IBT) qualify as external customers that should be billed through the A/R system. Examples would include the Nebraska Department of Health & Human Services, Medically Handicapped Children’s Service, the Nebraska Department of Education and other state agencies receiving state funding that clear invoices using IBTs.
Departments are responsible for generating accurate, timely invoices to external customers for non-sponsored receivables. Sponsored Programs Accounting (SPA) is responsible for generating accurate, timely invoices to external customers for sponsored receivables.
Other specific invoicing requirements may render the A/R subsystem not applicable/efficient for use. For example, contractual terms may require wording, terminologies, etc. that are unworkable with the current invoice template. These exceptions will be reviewed on a case-by-case basis by the Controller’s Office.
The standard payment term to be applied to invoices generated in the A/R subsystem is net 30 days.
Exceptions
As mentioned above, the UNMC Management Resources system is not designed for internal (on-campus) or intercampus charges. Examples would include UNMC departments billing each other (phone charges, copy charges, dietary tickets, etc.) and intercampus charges (UNO, UNL, UNK, etc.). Transactions that can be accounted for solely within SAP via journal entry are not invoiced via the UNMC Management Resources system.
Access to Management Resources
A training class is required to obtain access to the UNMC Management Resources system. Billers can obtain access to invoices via the UNMC Management Resources system with a request to the General Accounting Office only after training is completed. General Accounting reserves the right to remove access if deemed necessary. Additional training will be required to regain access.
Entering Invoices Within Management Resources
Billers can submit invoice detail to approved customers and contact information. The subsystem is monitored daily for newly entered customers and contacts.
The General Accounting Office will monitor outstanding invoices based on the timing listed in the collection section listed below, following up with billers as needed and processing payments as they are received.
The UNMC Management Resources system will interface with SAP as payments are processed.
Collection and Write-off of Delinquent Balances
Collection Procedures for Invoices Outstanding
AR billers are responsible for collection of their invoices.
Collection Procedures for Invoices Outstanding passing the assigned payment term:
- Between 30-60 days – A/R Biller will send second request billing to customers
- Greater than 90 days – A/R Staff will send aging report to AR Biller and request collection status
- Greater than 180 days – A/R Staff will send aging report and notification to A/R biller with college deans copied
- Invoices outstanding greater than 180 days may be assessed service charges determined by the vice chancellor for business, finance and business development
- Retainage balances are exempted from this procedure
Write-off of Delinquent Balances
Delinquent balances greater than 365 days will be written off from the A/R system. Write-offs must be submitted to the vice chancellor for business, finance and business development for approval. The vice chancellor will determine if written off balances will be:
- Assessed service charges
- Turned over to campus legal counsel
- Turned over to a collection agency
- Retained by UNMC General Accounting Office
Non-compliance
Payments received by UNMC outside of this policy (not invoiced via the UNMC Management Resources system) may not be recorded to departmental accounts in a timely manner. Complications arise when electronic payments are received with no supporting backup.
Additional Information
This page maintained by mh.