Accounts Receivable Management
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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.
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.
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.
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
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.
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