Difference between revisions of "Accounts Receivable Management"

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(http://wiki.unmc.edu/images/9/9f/SampleInvoice.pdf replace with https://wiki.unmc.edu/images/e/e1/Sample-AR-invoice.pdf per Dorothy Panowicz request)
 
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<td style="padding:0.5em; background-color:#e5e5e5; font-size:90%; line-height:0.95em; border:1px solid #A3B1BF; border-bottom:solid 2px #A3B1BF"  
 
<td style="padding:0.5em; background-color:#e5e5e5; font-size:90%; line-height:0.95em; border:1px solid #A3B1BF; border-bottom:solid 2px #A3B1BF"  
 
width="20">[[Intellectual Property]]</td>
 
width="20">[[Intellectual Property]]</td>
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<td style="border-bottom:2px solid #A3B1BF" width="3">&#160;</td>
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<td style="padding:0.5em; background-color:#e5e5e5; font-size:90%; line-height:0.95em; border:1px solid #A3B1BF; border-bottom:solid 2px #A3B1BF"
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width="20">[[Faculty]]</td>
 
</tr>
 
</tr>
 
</table>
 
</table>
 
<br />
 
<br />
[[General Accounting]] | [[SBIR/STTR Program Participation]] | [[Supplemental Compensation Plan]] | [[Facilities Management/Planning]] | [[Purchasing]] | [[Public Affairs]] | [[Facility Identification]] | [[Serving Alcoholic Beverages]] | [[Travel and Reimbursement]] | [[State Vehicles]] | [[Reproducing Copyrighted Materials]] | [[Credit Card Processing]] | [[Student Training Agreement]] | [[Volunteer]] | [[Cash Handling]] | [[Fraud]] | [[Assigning Research Lab Space]] | [[Space Scheduling and Fundraising]] | [[International Health Education]] | [[Faculty Personnel Records]] | [[Cellular Phone]] | [[Off-campus Graphic Design and Related Printing]] | [[Off-campus Photography]] | [[Tax Exempt Financing and Tracking of Both Qualified Use and Non-Qualified Use of Research Space]] | [[Secondary Logos]] | [[Social Media]] | [[Accounts Receivable Management]]
+
[[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: '''08/24/16'''<br />
+
Revised Date: '''03/08/22'''<br />
Reviewed Date: '''07/20/16'''<br />
+
Reviewed Date: '''03/08/22'''<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 />
<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 />
<br />
+
 
'''Invoice:''' A UNMC-generated document provided to an entity describing the products/services provided, the amount due, and the requested date for payment.<br />
+
'''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 />
<br />
+
 
[http://wiki.unmc.edu/images/9/9f/SampleInvoice.pdf Sample Invoice]  
+
[https://wiki.unmc.edu/images/e/e1/Sample-AR-invoice.pdf Sample Invoice]  
 
==Policy==
 
==Policy==
Invoices are to be created using the Accounts Receivable subsystem available within the UNMC Management Resources on-line application. 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 />
+
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 />
<br />
+
 
The intent of this system is focused towards '''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 />
+
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 />
<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 Departments billing phone charges, dietary tickets, printing services, and intercampus tuition billings (billed via SAP journal entry) are examples.<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 departmental billing phone charges, dietary tickets, printing services and intercampus tuition billings (billed via SAP journal entry) are examples.<br />
<br />
+
 
State agencies with invoices paid via Interagency Billing Transfer (IBT) qualify as external customers that can 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 />
+
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 />
<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 />
+
 
<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 Controller and Finance Cashier’s Offices.<br />
+
 
<br />
 
 
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 A/R subsystem 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 applicable to the intent of what is invoiced via the A/R subsystem.
+
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 obtain access to the A/R subsystem with a request to the [mailto:accountsreceivable@unmc.edu Finance Cashier’s Office]. Once accessed, billers can enter customer and contact information for invoicing purposes, with the ability to then submit invoicing details to approved customer/contacts. Administered by the Finance Cashier’s Office, the subsystem is monitored daily for newly entered customers and contacts. In addition, they review, generate, and mail submitted invoices as instructed by billers. <br />
+
Billers can submit invoice detail to approved customers and contact information. The subsystem is monitored daily for newly entered customers and contacts. <br />
<br />
+
 
The Finance Cashier’s Office will monitor the outstanding invoices generated through the subsystem, following up with billers as needed and process payments as they are received.<br />
+
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 />
<br />
+
 
The A/R subsystem will interact with SAP in that when payments are processed, the money collected will then be allocated to the respective cost objects as submitted by the biller when entering the invoice information.
+
The UNMC Management Resources system will interface with SAP as payments are processed.  
===Timelines===
 
Agreements or contracts may determine the billing structure as to when an invoice is to be generated (monthly or quarterly, for example). Such structured invoices should be created within 10 business days as agreed upon. In the event of no invoicing schedule, billers should initiate the invoice process upon completion of a transaction and when the amount to be charged a customer is known/determined.
 
 
==Collection and Write-off of Delinquent Balances==
 
==Collection and Write-off of Delinquent Balances==
 
===Collection Procedures for Invoices Outstanding===
 
===Collection Procedures for Invoices Outstanding===
*greater than 30 days – A/R staff will send second request billing to vendor
+
Collection Procedures for Invoices Outstanding passing the assigned payment term:
*greater than 60 days – A/R staff will communicate with biller to determine who will follow up with vendor
+
*Between 30-60 days – A/R Biller will send second request billing to customers
*greater than 180 days – A/R will send a revised invoice with service charges to vendor
+
*Greater than 90 days – A/R Biller will communicate with A/R Staff to determine who will follow up with customers
:*Invoices outstanding greater than 180 days will be assessed service charges at the rate of 16% per annum from the invoice due date
+
*Greater than 180 days – A/R Staff will send a revised invoice with service charges to customers
 +
*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 240 days will be written off from the A/R system. Write-offs must be submitted to the Vice Chancellor of Business and Finance (VCBF) for approval. The VCBF will determine if written off balances will be:
+
Delinquent balances greater than 240 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:
:*turned over to campus legal counsel
+
*Assessed service charges
:*turned over to a collection agency
+
*Turned over to campus legal counsel
:*retained by UNMC Accounts Receivable/Cashiering Office  
+
*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 using the A/R subsystem) may not be recorded to departmental accounts as timely and these delays can result in inaccurate financial information. Complications often result in electronic payments received with no supporting backup. With no ability to properly account for them, these unclaimed receipts (checks, ACH, and wire payments) will be listed in the Cashiering Office website for review, updated regularly as needed. After 90 days of receipt, payments will be removed from the listing and retained by the Controller’s Office.
+
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:terry.lilla@unmc.edu Accounts Receivable/Cashiering]
+
*[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:dpanowic@unmc.edu dkp].
 
This page maintained by [mailto:dpanowic@unmc.edu dkp].

Latest revision as of 16:55, March 8, 2022

Human Resources   Safety/Security   Research Compliance   Compliance   Privacy/Information Security   Business Operations   Intellectual Property   Faculty


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: 03/08/22
Reviewed Date: 03/08/22

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.

Sample Invoice

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

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 Biller will communicate with A/R Staff to determine who will follow up with customers
  • Greater than 180 days – A/R Staff will send a revised invoice with service charges to customers
  • 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 240 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 dkp.