Customer Relations Advisory Council

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1 OVERVIEW Recently the Project Management Office for ufbridges established a new team to implement PeopleSoft s Receivables, Billing, and Contracts for non C&G transactions. While these applications are robust with features and functionality, we will focus our efforts on three primary objectives to go-live July 1, 2004 as follows: 1. Deposits (Cashiering Office) All UF colleges and departments that receive funds deposit those funds with UF by completing a departmental deposit form and transferring the deposit to the Cashiering Office. The Cashiering Office enters these deposits into their system then audits them for accuracy. Any errors cause a delay with that deposit. In PeopleSoft, we envision each college and department entering their respective deposits directly into the system. This should not take any additional time for the college or department, and it will allow the Cashiering Office to focus on auditing functions. Additionally, UF will be able to make all deposits without delay even if there are errors. 2. Interdepartmental Billing A few vendors send their bill to a central UF agent (like PPD or NERDC) for payment. That agent then bills all of the colleges, departments, and auxiliaries. These bills relate to telecommunications, utilities, and the like. Currently the UF agent produces an invoice they send to their customer and a batch file they send to FLAIR to generate journal transfers. PeopleSoft will impart best practices for this process by integrating the AR/BI applications with AP/PO, GL, and Commitment Control. The agent will still invoice the customers, but the customers will treat it as a true invoice as opposed to just a backup statement for journal activity. The college/department will encumber funds through requisitions and purchase orders then register each invoice as a voucher (i.e. payable) upon receipt. We will add some workflow to allow colleges and departments to have the ability to deny invoices containing errors. Utilizing Commitment Control throughout this process will ensure spending authorities are accurate. 3. External Billing and Receivables Several colleges and departments use shadow systems to handle any invoicing and receipt requirements. PeopleSoft will allow us to consolidate those transactions into one system and eliminate unnecessary interfaces from external systems. While we will try to meet with as many entities as we can to understand their billing and receivable processes, we intend to implement a shell that we should be able to rollout to the majority of UF for those processes we see as a standard across the university. PROCESS FLOW DIAGRAM The normal flow of transactions through PeopleSoft s Bill to Cash system originates in Billing and ends in the General Ledger. Page 1 of 14

2 PEOPLESOFT BILLING PeopleSoft provides the following business processes with its billing module: 1. Billing Interface this will be how the majority of billing information gets into PeopleSoft. 2. Bill Entry (Express/Online) PeopleSoft provides two methods of doing the same thing entering billing information directly into the system. The express basically just contains frequently used fields. 3. Direct Invoicing streamlines the billing process by combining several steps in the collection and processing of billing activity from other source systems 4. Consolidated Billing groups or consolidates individual invoices for ease in processing 5. Unbilled Revenue Accrual - enables you to create accounting entries to accrue revenue for uninvoiced activity (e.g. to send revenue activity to your general ledger weekly when your invoices are created monthly). 6. Deferred Revenue Accounting relates to the accounting for creating and sending invoices for products or services that you will deliver in the future or over a range of time. The accounting entries essentially defer revenue recognition based on some date and proration method 7. Billing Adjustments credits 8. Create Pending Items generating AR items from billing 9. Create Payables Vouchers refunds, returns, overpayments, and the like 10. Recurring Billing scheduled bills that you generate your bills daily, weekly, monthly, or annually like rent or utilities 11. Installment Billing invoicing your customers in segments, with the total amount due divided equally, by percentage, or according to some other definition Page 2 of 14

3 BILLING HEADER Header information applies to the entire bill. The bill header contains all information identifying the bill's source, destination, appearance, format, and the internal codes and dates that distinguish this bill from others in your accounting system. If you import a bill through the Billing Interface, this header information is included and you may change it on these pages. If you are entering the bill online, you must specify all the header data on these pages. Invoice Date Frequency Installment Bill Schedule Recurring Bill Schedule Customer Address Invoice Form From Date, To Date Pay Terms (payment terms) Select the date you want to appear on the bill. If you specify a value that falls within an accounting period currently closed in PeopleSoft General Ledger, the system issues a warning. To define a bill as a recurring bill template, select Recurring. To define a bill as an installment bill template, select Installmnt (installment). Otherwise, select Once. Click to generate an installment billing schedule. Click to generate a recurring bill schedule. (Required) Click to access the Standard Billing Address Info page, where you can view more information on this customer, such as contact name or location. (Required) Select a format for this bill. Indicate what date range of billing activity the corresponding invoice covers. (Required) Page 3 of 14

4 Pay Method Remit To Account AR Distribution Sales, Credit, Collect Biller The system searches the customer record for a default payment. If it doesn't find a value, the system doesn't populate this field. Click the View Credit Card Information button to access the Header Info 1 - Credit Card Information page where you can review or update credit card information for this customer. Displays a list of financial institutions associated with this payment. Enter a value in this field, as well as an associated payment account, in the adjacent field. Enter a receivables account if you want to override the system defaults provided at other levels. Click to access the AR Distribution page, where you can look at the remaining ChartField accounts for this AR account. If you do not specify these contacts (salesperson, credit analyst, and collector), the system populates these fields with a default value from the customer table. The system populates this field (billing specialist) with a default value from the business unit, bill type, bill source, or customer options, depending at which level you specified this value. Page 4 of 14

5 BILLING LINE Bill line data pertains to a particular line of a bill. Charge identifiers, descriptions, pricing, discounts and surcharges, general ledger account codes, and line notes are included in this class of information. If you're entering the bill online, you must specify all the line data on these pages. The bill entry line information pages contain the required fields for your bill lines, such as product identifier, description, quantity, price, and specific bill source information, if applicable. Unit Price Quantity, UOM (unit of measure), Unit Price, and Gross Extended price Less Discount, Plus Surcharge, and Net Extended amount When you select an identifier, this field, as well as the description, UOM (unit of measure ), and revenue distribution code, automatically default. Override any of these defaults if necessary. Line specific. You must enter or verify these for each bill line. The system automatically computes the gross extended amount when you enter a unit price and computes the unit price when you enter a gross extended price. Refer to this bill line only. Page 5 of 14

6 Line Type Accumulate From Date, Through Date (Required) Defaults from the type of identifier you entered in the Identifier field and the table from which it came. The different line types enable you to categorize your bill lines. Translate values are BRT (billing retainage, which comes from PeopleSoft Projects), ADV (advanced billing), REV (standard chargeable revenue lines), DISC (discount lines), SUR (surcharge lines), FRGT (freight), and RSTK (restock). The translate values of FRGT and RSTK are used primarily with PeopleSoft Order Management, but even if PeopleSoft Order Management is not installed, you can use these values to further define your surcharge line. Select to enable the accumulations feature. Accumulated balances enable you to define and run balances for any set of essential combinations in PeopleSoft Billing. If you have defined the line item amount or quantity field for which you want to keep cumulative balances on the Accumulation Description page, select this check box. If you are updating an existing bill line whose item amount or quantity field has been defined on the Accumulation Description page as one for which you want to keep cumulative balances, the check box defaults to selected. If for some reason you do not want to include this bill line amount or quantity in with the cumulative balance for this line item, clear this check box to exclude the quantity or amount from the cumulative balance. If applicable, enter the dates associated with this bill. BILLING ACCOUNTING DISTRIBUTION (REVENUE) You may have more than one account distribution line for each bill line. Information on this page is not required since we defined the GL Option as AR Creates GL Acct Entries. Page 6 of 14

7 Bill Line Distribution Revenue Bill Line The ChartField values in this group box default from the distribution code listed. If you leave the distribution Code field blank, you must enter the ChartFields here. Information captured on this page drives the revenue/inventory accounting entries created for the bill from business unit's books. At the bottom of this group box are various totals for this line to give you an overall line status, which is particularly helpful if you have distributed accounting information to several different GL accounts. PEOPLESOFT RECEIVABLES PeopleSoft provides the following business processes with its receivables module: 1. Item Entry PeopleSoft items are the individual receivables that comprise a customer's balance. UF may refer to items in a variety of ways, including invoices, obligations, open items, receivables, or documents. PeopleSoft Receivables distinguishes between items (the receivables that comprise a customer's balance) and pending items (information in the system, but not yet updated in the customer's balance). 2. Item Maintenance in PeopleSoft Receivables, maintenance items can be credit or debit memos, invoices, adjustments (generated when you process payments), on-account payments, or prepayments. 3. Deposit Entry consists of all payments that you or the bank group for processing 4. Direct Debits a widely used, contractual method for collecting payment and receipts. The vendor and customer set up a contract that allows the vendor to collect an amount due for specific goods or services directly from the customer's bank through electronic funds transfer (EFT). 5. Draft Processing drafts are used throughout the world as a payment method and are similar to EFTs. 6. Payment Application payment processing can be simple or complex, depending on how customers pay. Some payments may cover one item for a single customer, others may apply to hundreds of items that are billed to different customers across multiple business units. 7. Payment Predictor this is the automatic cash application feature in PeopleSoft Receivables. It's one of three alternatives in the array of cash application options that also includes express deposit and payment worksheets. You can think of Payment Predictor as an automated version of a payment worksheet, which is used to manually match payments to open items and to create adjustments or write-offs for overpayments and underpayments. 8. Aging the Aging process generates reports that show which customers have outstanding receivable balances. Management and collection departments rely on aging to identify delinquent accounts and to assess possible cash flow issues. 9. Overdue Charges the Overdue Charge process (AR_OVRDUE) reviews customers open items and identifies those that are eligible for overdue charging. The system calculates the overdue charge for the number of days that are eligible for charging. These calculations are Page 7 of 14

8 based on an amount, interest rate, fixed amount, and time basis that are specified in the overdue charge IDs. 10. Customers the sole source of receivable transactions. 11. Customer Correspondence PeopleSoft provides several processes to generate correspondence to your customers, which include dunning letters, follow-up letters, and statements. 12. Commitment Control the combination of commitment accounting and budgetary control. AR utilizes three commitment control buckets Budget, Recognized Revenue, and Collected Revenue. 13. Workflow a background process that creates a list of administrative actions based on your selection criteria and specifies the procedure associated with each action. RECEIVABLES PENDING ITEMS Pending items enter the system in one of two ways: you can import them from a billing interface or add them manually. If you add pending items manually, the next step is to create accounting entries for the pending items. During online and background processing, the system verifies that all entries contain valid information and all control totals balance. After the data entry process is complete, you decide when to post pending items. After pending items are in the system, you post them to PeopleSoft Receivables using the Receivable Update process (AR_UPDATE), which updates the customer balance. If there are errors during posting, the process does not post the pending items, and you use the pending item error correction pages to correct whatever errors were found. PeopleSoft Receivables provides a variety of maintenance options for open items once they have been posted. A status page provides all related information at a glance. Item worksheets offer an environment for paying items, matching items, transferring items, and creating write-offs as needed. Please Note: PeopleSoft Receivables distinguishes between items (posted receivables) and pending items (information that has been entered into or created by the system but hasn't yet been posted). During the Receivable Update process, the system uses the pending items to update customer balances either by creating new items or by adding item activity lines to existing items. Page 8 of 14

9 RECEIVABLES PENDING ITEM ENTRY GROUP CONTROL This page displays control and header information for a group of pending items. At a minimum, you need to enter a group type, origin ID, control amount, and control count. Group ID Acctg Date (accounting date) Group Type Origin ID Control Currency Format Currency When you save this page, the system assigns the next available group ID. The group ID is based on the settings made on the Business Unit Definition page. You can override automatic numbering by entering your own group ID. Displays an accounting date that is the default for each pending item in the group. The date determines the fiscal year and accounting period to which the pending item is posted. It also serves as the effective date for this page. Select one of the group types that you defined for billing. Select the group origin ID, for example OBILL (online billing). The system assigns an origin ID that is valid for external entry to groups that are received through the billing interface. Select to ensure that all pending items in the group have the same currency. The default is the format currency value that you entered on the Receivables Data Entry 2 page. PeopleTools uses the format currency to determine the default currency of the pending item amounts that you enter. If you enter a control currency, the format currency changes to that value, and the field becomes unavailable for entry. Page 9 of 14

10 Control Received and Entered Assign Edit Status Balanced Posting Status Accounting Entries Posting Action Enter the group control totals: the total dollar amount of pending items in this group and the control count (the total number of pending items in this group). The system compares the control amount and count with the entered amount and count and calculates the difference. The control amount must match the entered totals amount before you can post the pending items in this group. In other words, the Difference should be 0. After a group is posted, you can view the Posted amount and count for the group using inquiry pages. Indicate when the group was received into the system and when items were entered. Use these fields to indicate processing delays, such as a department receiving the credit memo on Thursday, but did not enter them until Friday. Your user ID appears in the User field. If another user will enter pending item information, enter the other user ID in the Assign field. Displays whether or not pending items have been edited. Edited indicates that pending items have been edited. (Most online groups have a status of Edited.) Not Edited indicates that external groups have not yet been processed by the Receivable Update process. Indicates that the system has balanced the online group. If No, the pending item group has not yet been processed by Receivable Update and the group may not actually be out of balance. To determine if a group is really out of balance, click the Balance button on the Group Action page. Displays whether or not pending items have been posted. Not Posted indicates that the groups have not yet been processed by the Receivable Update process. After Receivable Update runs, the posting status is either Errors or Complete. Indicates whether accounting entries for pending items are Balanced or Not Balanced. Displays the action you selected on the Group Action page: No Action, Post Now, or Post Later. Page 10 of 14

11 RECEIVABLES PENDING ITEM ENTRY PENDING ITEM 1 Group ID When you save this page, the system assigns the next available group ID. Pending Item Entry Group Box Acctg Date (accounting date) As Of Date Item ID Posted Customer This default is the date entered on the Group Control page. It determines the fiscal year and accounting period used to post the item for both PeopleSoft Receivables and PeopleSoft General Ledger. Usually the same as the accounting date. You may use a different date for aging. You can also use this date to record the invoice date used to calculate payment terms. Enter a number that describes the pending item, such as the invoice number. As you enter pending items, the system assigns each row a Sequence number, which appears as you scroll through the pending items on the page. If you need to divide an invoice into multiple lines, click to add the next line number and automatically copy some of the pending item information to the new row. You need to complete the AR Dist (accounts receivable distribution code), Entry Type, and Reason fields on the new row. If selected, the pending item has been posted and you cannot change information about it. Enter the business unit, customer ID, and two subcustomer qualifiers. Subcustomer qualifiers default from the customer if the feature is enabled. Page 11 of 14

12 Entry Type and Reason AR Dist (accounts receivable distribution) Entry types and entry reasons are among the most important pieces of information associated with a pending item. They determine how accounting entries are created, are carried with the pending item through posting, are considered when history is generated, are used as identifiers for open items, how items are aged, and if accounting entries are included on customer correspondence and drafts. The AR Dist code governs the ChartFields that are used when the system generates accounting entries. If you want the Pending Group Generator process to create a single AR line for accounting entries, you can use the default or override the default with a different AR Dist code. Projects Click to open a page where you can enter information used by PeopleSoft Projects for the pending item. Payment Terms Terms Due Date Due Days Disc Days (discount days) Always Allow Discount L/C ID (letter of credit ID) Error Info (error information ) Use the default payment terms code (from the Customer field), change the default, or leave blank. If you change the default, you cannot use the discount fields. If you leave this field blank, you can fill in the discount amounts and dates of your choice. This field is required for the Aging process. If there are no default values for the discount fields, you still must enter a due date. If the due date falls on a bank holiday, it is adjusted automatically. Use to add grace days or leeway to the payment terms. Use to indicate the number of days past the discount date during which the customer is still eligible to receive a discount. Select during conversion and for preferred customers. Select to override previously set discount parameters and ensure that a customer receives a discount regardless of due date and payment date. Payment worksheets and Payment Predictor use this check box. Enter the letter of credit ID for the pending item. Displays only when errors are present. Click to open a page where you can view more details about the error. Page 12 of 14

13 RECEIVABLES PENDING ITEM ENTRY PENDING ITEM 2 RECEIVABLES PENDING ITEM ENTRY ACCOUNTING ENTRIES Page 13 of 14

14 RECEIVABLES PENDING ITEM ENTRY GROUP ACTION Page 14 of 14