Non Student Accounts Receivable Billing Organizations User Guide Financial Management Services

Transcription

1 Non Student Accounts Receivable Billing Organizations User Guide Financial Management Services Page 1 of 32

2 Contents Introduction... 3 The Accounts Receivable Transactions Section... 4 Examples:... 5 Creating AR Customers... 6 Editing Existing Customers... 8 Customer Invoice Correcting an Invoice Customer Credit Memo Customer Invoice Write-off AR Document Searches Billing Statement Customer Aging Report Business Rules for Creating New Customers in KFS AR... Error! Bookmark not defined.4 AR Transaction Flow Non Student Accounts Receivable FAQs..27 Page 2 of 32

3 Introduction The Accounts Receivable documents are used to invoice external customers for goods and services. The Kuali Financial System (KFS) is used to track outstanding customer balances and payments and general ledger entries are created. Billing Organizations are the departments/accounts within the university generating charges and creating invoices. Processing Organizations are the centralized units which process the lockbox payments and are responsible for applying payments. Each Billing Organization is linked to one Processing Organization. Billing Organizations create, print and mail invoices to customers. The invoice directs the customer to mail their payment to a lockbox. The lockbox payments are processed by the Processing Organization thus relieving the departments of any payment handling. Central Accounts Receivable on the Bloomington Campus is responsible for approving new customers and new customer addresses. This allows for an additional review to make sure there are no duplicate customers and/or addresses created in the customer table. Processing Organizations are responsible for setting up departments to use the Accounts Receivable documents. Once a department is set up to use Accounts Receivable, any KFS user within that department can create A/R documents. The remainder of this document will go through detailed examples of using the KFS AR focusing on: Creating and editing customers Creating customer invoices Creating customer credit memos Creating customer write-offs Reports and Searches Page 3 of 32

4 The Accounts Receivable Transactions Section When you first log into KFS, you will see the following screen: As a Billing Organization user, you will be able to create the following documents by clicking on KFS ACCOUNTS RECEIVEABLE on the left side of screen: Customer Credit Memo Customer Invoice Customer Invoice Write-off You will also be able to edit and create AR Customers as well as generate Billing Statements and Customer Aging Reports. Page 4 of 32

5 Examples: A. Create an invoice for: Peyton Luck Football Operations P.O. Box 1234 Denver, CO Invoice #1-100 season tickets for the 2013 season at $400/each; discount this invoice for $ Invoice #2 75 jerseys at $45/each 3. Peyton returns 5 of the jerseys. A Credit Memo will need to be created against invoice #2. B. Create an invoice for: Andrew Manning Lucas Oil Road Indianapolis, IN Invoice #1 - catered meal for 300 people at $25/per person 2. Invoice #2 Delivery charges - $ Before the invoice is mailed, Andrew decides he will pick up the food instead so Invoice #2 needs to be corrected (reversed). 4. After the event, Andrew goes bankrupt and cannot pay Invoice #1. A write-off will need to be created for that invoice. For these two invoices, account and object code 1800 will be used. Page 5 of 32

6 Creating AR Customers Before creating the invoice, you need to determine if the customer already exists or if a new customer needs to be created. To search for customers, click on KFS ACCOUNTS RECEIVABLE on left side of screen and then click Customer Lookup which will bring up the Customer Lookup screen. Search for the first customer, using (*) as a wild card to search on a portion of the customer name. *Luck* will return all customers that have the text string Luck in any part of the name: Page 6 of 32

7 Be sure to click Both for the Active indicator to return both active and inactive customers. Since we do not find Peyton Luck, a new customer must be created. This can be done by either clicking the create new button in the upper right corner of the Customer Lookup screen or from the main screen under KFS ACCOUNTS RECEIVABLE then clicking on Customer. Either one of these options will return a new customer document. The following are required fields to create an AR customer: Description Customer Name please follow the naming rules which are listed at the end of this section. Customer Type Please select Not Indicated Address Name should be the same as the customer name. Address 1 City State - unless it is a foreign customer Postal Code unless it is a foreign customer International Province only for foreign customers International Postal Code only for foreign customers Country All other fields are optional. Once you enter the address, you must click Add before submitting the customer document. After you click Submit, the customer number will be automatically assigned. These documents are routed to Central Accounts Receivable for approval. See Business Rules for Creating a New Customer at the end of this document. Page 7 of 32

8 Editing Existing Customers If the customer you need is found through customer search, click on the Customer Number to determine if the necessary address exists for this customer. In this case, the address we need does not exist so we must add it. Also, this customer shows as inactive so we must also activate the customer. Page 8 of 32

9 Back on the Customer Lookup screen, in the Actions section, click edit for this customer. This allows you to change existing information for the customer. Enter your changes on the right side of the screen. In the General Information tab click the box next to Active Indicator; to activate or uncheck to deactivate a customer. To add an address, enter the information in the New Customer Address section and click add. Once you have made the necessary changes and added the address, click submit. These documents also route to Central Accounts Receivable for approval. Back on the Customer Lookup screen, there is also a report link in the Actions section of the search results. This will return all AR activity for this customer. Page 9 of 32

10 Customer Invoice Now that the customers have been created and edited, the invoice can now be created. Click the KFS ACCOUNTS RECEIVABLE tab; then click Customer Invoice. Information below will describe each section of the invoice edoc. The upper right corner of the edoc is the invoice number (Doc Nbr), Status, Initiator, Create date/time, Invoice Total Amount and Open Amount. These fields will be updated once the invoice is submitted. Page 10 of 32

11 Document Overview tab: Description is required Organization Document Number - optional Explanation - optional Organization tab: Processing Chart and Organization this will automatically populate with your Department s payment processing organization Billing Chart and Organization the chart and organization associated with your username. Organization Invoice Number optional Recurrence Details tab: This allows you to set up a future recurrence of this invoice. It will create a copy of this invoice at specified future intervals. It will appear in the action list of the designated initiator. Page 11 of 32

12 General tab: Customer Number enter the customer number or search for it by clicking on the magnifying glass. Required. Customer Purchase Order Number and date Optional Billing Date will be populated with the create date. This is the invoice date. Due Date this will default to 30 days from the billing date. This can be changed but can be no longer than 90 days from the invoice date. Terms this will default for your billing organization based on the Organization Options This can be changed but please make sure it matches the invoice due date. Open Invoice Indicator Yes invoice has open dollar amount Header Text This allows you to enter a message that will appear on the printed invoice. Attention Line Text used to address the invoice to a specific person. Print Invoice Indicator defaults from Organization Options. Allows you to print invoices in batch by user, billing organization or processing organization. Print Date date the invoice was last printed. Page 12 of 32

13 Billing/Shipping tab: Bill To Address this section defaults to the primary address of the customer. To change it click on the magnifying glass to search for all addresses for that customer. This appears in the remit section of the printed invoice. Ship to Address this section will be blank unless you select an address. This appears in the Ship to section of the printed invoice. Accounting Lines tab required fields: Account Object Quantity Invoice Item Unit Price After entering the accounting information, click add to add the line. You can then add additional lines if necessary. Invoice Item Description this field is 400 characters. We recommend you type it into Word and then copy and paste it into the invoice item description to ensure correct spelling and monitor your word count. Page 13 of 32

14 Discounts To add a discount line, click the discount button in the Actions section of the line you wish to discount. This will add a new line which will be a negative of the entire line you are discounting. You must adjust the dollar amount and/or quantity to reflect the proper discount. You may also edit the item description. Click refresh to update the amount. Once the accounting lines have been added, click submit. Since invoices do not route, click the reload to update the status to final. This will also display two more buttons at the bottom of the screen: Generate print file will create a PDF of the invoice which you can save or print. Correction allows you to reverse the invoice. PDF of example 1: Page 14 of 32

15 Correcting an Invoice The correction process is used to reverse an invoice that should not have been created. An invoice cannot be corrected if there have been payments or credits applied to it. To correct an invoice, click on KFS ACCOUNTS RECEIVABLE tab on left side of KED screen; then Click Customer Invoice Doc Search. You can also use the general Doc Search at the top of the main KED screen. Enter the invoice number or any search criteria if the invoice number is not known: In this screenshot above, we are looking for the invoice created for example B2 on page 5. The customer decided to pick up the food instead of having it delivered so the invoice should not have been created. Page 15 of 32

16 Click on the document number to return the invoice. At the bottom of the screen are several options. Clicking Correction will create the reversal document. It looks exactly like the original invoice except that it has a different document number and the amounts will be negative. Click Submit to finalize the correction. Page 16 of 32

17 Customer Credit Memo Credit Memos are used to credit the original invoice due to returns, price adjustments, etc. They are NOT used for write-offs or reversals. Continuing with the examples from page 5, an invoice was created for the jerseys (A2): Peyton returns 5 of the jerseys (A3) so a credit memo will need to be created. Click KFS ACCOUNTS RECEIVABLE on left side of KED screen; then Click Customer Credit Memo and the following screen will appear: Page 17 of 32

18 Enter the invoice number you wish to credit and click continue. You can also search for the invoice by clicking the magnifying glass. The Credit Memo screen will then appear: A description is required and we also recommend entering an explanation with the details as to why the credit is being issued. Items Section enter either the quantity to be credited OR the dollar amount. Do NOT enter both. Click recalculate to update the credit memo total. If the amount is correct, click submit. Accounting lines are not entered on the credit memo. It will use the accounting information from the invoice. Credit Memos route to the fiscal officer(s) on the accounts of the invoice. Once the Credit Memo has been approved, you can open it through document search and print it: Page 18 of 32

19 Normally, these aren t sent to the customer but if they would ask for a printed copy, it can be provided. Customer Invoice Write-off The Customer Invoice Write-off document is used to write-off the balance of an outstanding invoice due to non-payment. Goods or services were provided to the customer but they will not or cannot pay the invoice (bankrupt, customer is disputing what is owed, etc). Continuing with the examples from page 5, an invoice was created for the catered meal (B1) for $7,500. Click KFS ACCOUNTS RECEIVABLE on left side of KED screen; then Click Customer Invoice Writeoff and the following screen will appear: Page 19 of 32

20 Enter the invoice number you wish to write-off and click continue. You can also search for the invoice by clicking the magnifying glass. The Invoice Write-off screen will appear: Description and Note are the only required fields. We recommend your note be as descriptive as possible to assist with year-end reporting. This note is also added to the customer record for future reference. Click submit to route the document to the fiscal officer. Accounting information or dollar amounts are not entered on this document. It uses the account from the invoice and object code 5105 (write-off expense). The entire outstanding balance of the invoice will be written off with this document. Customer Invoice Writeoff Lookup This option allows the write-off of multiple invoices at one time and appears under the KFS ACCOUNTS RECEIVABLE tab on the main KED screen. For now, this option is for Central AR use only. Please use the individual write-off documents instead. Page 20 of 32

21 AR Document Searches Document searches can be done for most KFS documents. Click on the Doc Search tab at the top of the KED screen. Enter the Document ID then click Search to go directly to a specific document. If the document number isn t known, enter the Document Type and all other information known about the document. Below is an example of an invoice search using the Initiator ID and part of a customer name using wildcards (*): Page 21 of 32

22 Billing Statement The KFS Billing Statement creates a PDF of all outstanding invoices for a customer, account or billing organization. Click on the KFS ACCOUNTS RECEIVABLE tab on the right side of the KED screen; click Billing Statement and the following screen will appear: **Please only use the Summary Statement Format** The Detail statement format will show all activity for a customer since the last time the statement was run. Since the customer database is universal, running a detail statement for a customer may result in limited data being returned since another department may have generated a Detail statement for that same customer. As of 2/15/13, there is an outstanding bug with the KFS Billing Statement where only one invoice prints on the first page of the statement and all other invoices on subsequent pages. We expect this to be resolved soon but in the meantime, please use the IUIE Billing Statement. We will notify you when this bug has been fixed. Page 22 of 32

23 Customer Aging Report The KFS Customer Aging Report allows users to monitor current and outstanding amounts for their billing organization or for a specific account. Click on the KFS ACCOUNTS RECEIVABLE tab on the right side of the KED screen; click Customer Aging Report. The following example is an aging report for billing organization UA-AR: Clicking on the amounts within the aging buckets will return a report (Customer Open Item Report) showing all invoices that make up that amount: As of 2/15/13, there is an outstanding bug where very large customers take an extremely long time to load for reports and sometimes the system will time-out. Examples of large customers are IND2923, CLA1125, BAR We will notify you when this bug has been fixed. Page 23 of 32

24 Business Rules for Creating New Customers in KFS AR General Naming Rules: 1. Do not use special characters unless the name requires an apostrophe or hyphen. 2. If it is necessary to abbreviate due to space limitations, do so at the end of the entry. 3. Numbers one through ten should be spelled out in the customer name when possible. For exceptions, see numbers 2 and 3 under the Naming Rules for Businesses and External Organizations section below. 4. Dashes should be used in phone numbers. Naming Rules for Individuals: 1. Names of individuals should be listed as Last name, First name Middle Name/Initial in the General Information tab of the Customer edoc (i.e. Smith, John A). Note: there is a space after the comma and after the first name before the middle initial. Entering the name in this format makes the first three characters of the customer number the same as the first three characters of the last name. The middle name/initial should be included so that Non-Student AR can verify that the customer request isn t a duplicate entry. The name may be listed in the regular First name Last name format (i.e. John Doe) in the Address tab of the Customer edoc so that it appears correctly on the KFS AR invoice. 2. Do not use punctuation or ampersands other than a comma to separate the last name and first name. If a last name is hyphenated it should be entered that way in the General Information tab of the Customer edoc (i.e. Doe-Deere, Jane). 3. Do not use prefixes (Mr, Mrs, Dr) or suffixes (PhD, DVM, CPA) when entering the name in the General Information tab of the Customer edoc. Do include any appropriate prefixes or suffixes in the Address tab. Naming Rules for Businesses and External Organizations Acceptable Abbreviations and Acronyms 1. Company type abbreviations such as Inc, Ltd, LLC should always be abbreviated. 2. DBA (Doing Buisness As) name acronyms such as IBM, ABC, or UPS are acceptable and do not need to be spelled out in full. A note should be added to the customer record explaining the use of the acronym prior to submitting the Customer edoc for approval. 3. Names using initials/letters such as 3M, JL Construction, or AFSCME have no spaces, no commas, no periods, or any other punctuation separating the initials in the name. Do not abbreviate or use acronyms in the following instances 1. Do not abbreviate words such as Medical Center or Hospital unless it is necessary for space limitations at the end of the name. 2. Prefixes such as Saint, Fort, Mount etc. should be spelled out. 3. For military branches, the prefix United States is left off. Just list the military branch name, i.e. Army, Navy, etc. Do not use abbreviations such as USN or USAF. Page 24 of 32

25 Other 1. Do not use The at the beginning of a customer name in the General Information tab of the Customer edoc. The name may be listed in the regular format in the Address tab (i.e. The Herald-Times). 2. When names such as City of Bloomington or University of Montana are used, it should be listed as Bloomington, City of or Montana, University of. 3. Do not use a business contact name in Address lines 1 or 2 of the Address tab in the Customer edoc. Enter the business contact name in the Attention line of the Invoice. For additional questions regarding naming new customers or setting up new customers, please contact your Campus AR Contact or nonstdar@iu.edu. Page 25 of 32

26 AR Transaction Flow Billing Org creates and mails invoice to Customer GL entries created on Dept account: Debit obj 8118 (AR) Credit obj 15XX (or any income obj) Customer remits payment By Check By Credit Card By ACH/Wire To the lockbox address on the invoice via the IUPayPlus website of the Proc Org Per the instructions on the IU Treasury website Proc Org applies payment to invoice GL entries created on Dept account: Debit obj 8000 (Cash) Credit obj 8118 (AR) Page 26 of 32

27 Non-Student Accounts Receivable FAQs General AR: Q: What is the difference between Accounts Receivable and Accounts Payable? Non-Student Accounts Receivable are charges billed separately from the bursar system to external parties (Non-IU) for goods or services provided. University organizations must use KFS- AR or a previously approved accounts receivable system to generate invoices for any amounts owed to IU by external customers. Accounts Payable are amounts Indiana University owes to external parties for goods or services purchased by IU. Q: What is the difference between a customer and a vendor? A customer is a party that purchases goods or services from a vendor. If an external party (Non- IU) purchases goods or services from an IU organization, the external party is the customer and will receive an invoice from the IU organization. A vendor is the party providing the good or service to the customer. If an IU organization invoices an external party for goods or services provided, the IU organization is the vendor and the external party is the customer. Billing: Q: Is there a step-by-step guide to all Billing Organization functions on the Non Student AR website? Yes, a Billing Organization User Guide can be found in the Reference Information for Billing Organizations section of the Non-Student Accounts Receivable Webpage. Additional training material can be found on the FMS website under the Training tab. Q: How frequently do I need to do billings? Customers, both internal and external, should be invoiced immediately after the good or service has been provided and no later than the end of the quarter in which the good or service was provided. If a job takes place over a period of time, progress billings should be done based on the percent of project completion. Page 27 of 32

28 Please reference the following Standard Operating Procedures for additional information: RSOP 2.0 Reporting Requirements for Recharge/Service Centers ASOP 2.0 Definition of Reporting Auxiliary and Service Centers ASOP 7.0 Reporting Requirements for Non-Reporting Auxiliary Units Q: What is the difference between a correction, a credit memo, and a write-off? A Correction edoc will reverse an invoice that should not have been created; however, an invoice cannot be corrected if there have been payments applied to it. A Credit Memo (CRM) document is used to credit the original invoice due to returns, price adjustments, or to remove open balances that will not be received due to costs associated with doing business, i.e. bank fees deducted for wire transfer payments. An Invoice Write-off (INVW) document is used to write off the balance of an outstanding invoice due to non-payment stemming from the customer not being able to pay (bankrupt, dispute, unresponsive, etc.). Customers: Q: How do I know if a customer already exists in KFS AR? Use the Customer Look-up feature in the Reference section of the Accounts Receivable module to determine if the customer already exists. Always change the Active Indicator to Both so that inactive customers are also included in your search results. Note: Wildcards can be used in the search criteria. It is best to search for part of the name you are looking for so that more results are returned. Once the list of search results displays, you can click on the column titled Customer Name to sort the list by name. Page 28 of 32

29 Q: How do I edit or add a new address for a customer? Perform a search for the customer number or look the customer up by using wildcards. This will return all of the addresses for that customer. Click edit in the Actions column of the search results. Follow these steps to edit the customer: 1. Enter a description such as add address or edit address is sufficient. 2. Go to the Addresses tab. Make sure in this section that the customer name appears as it would need to be addressed on an envelope, i.e. John Doe, instead of Doe,John. The address section of the customer setup does not have to follow the Business Rules for Naming New Customers. 3. It is okay to leave the address type as Alternate. Enter the new customer address and click the Add button. Important: the address will not be added to the record if you do not click Add. 4. Submit the document to route to Non-Student Accounts Receivable for approval. Q: How do I make a customer active or inactive? Once you have performed a search for the customer, click on the edit option under the Actions column of the search results. This will open the customer set-up screen. 1. In the description field, please notate the edit is to active or deactivate the customer. Do not specify the customer is only for use by your department or organization. 2. Under the General Information tab, you will see a blank box labeled Active Indicator. Check the box by clicking it to activate the customer or uncheck the box to inactivate the customer. 3. Submit the changes and the document will route to Non-Student Accounts Receivable for approval. Page 29 of 32

30 Q: How do I add a new customer? To create a new customer, click Customer under the Activities section of the KFS Accounts Receivable module. Enter a description - New Customer is sufficient. Please do not specify the customer is only for use by your department or organization. All IU campuses share the same customer database, and duplicate customer records should not be entered for department use only. Be sure to follow the Business Rules for New Customers located on the Non-Student AR Reference Information for Billing Organizations. Enter all of the required information indicated with an asterisk next to the field. You must click the Add button after entering the address information. If you want the customer name to appear in the first name last name format on the invoice, i.e. John Doe, you can enter it this way in the Address section of the customer set-up even though the naming rules require the customer record name be entered as Doe, John. Page 30 of 32

31 Naming Example for the General Information Section of Customer Set-up (The first three characters of the customer number are pulled from this section. The naming convention for this section does not appear on the invoice.): Naming Example for Address Section of Customer Set-up (This will appear on the invoice): Once you have completed the customer set-up, submit the edoc so it will route to Non-Student Accounts Receivable for approval. All customer record changes must be approved by Non-Student Accounts Receivable before they will be available for use in the KFS AR Invoice edoc. Q: Are the Business Naming Rules for customers posted on the Non Student AR website? Yes, they can be found in the Reference Information for Billing Organizations section of the Non Student AR website. Q: Will I be able to use the customer immediately after submitting my changes? The customer must first be approved by Non-Student Accounts Receivable before you can add it to the invoice. It will not appear in any of the customer searches until the customer document is in Final status. Non-Student Accounts Receivable usually approves new customer documents and any customer edits in a timely manner, but please contact nonstdar@iu.edu if you need immediate assistance. Q: Should IU departments be added as new customers for invoicing? No, when one IU department needs to bill another IU department, the transaction is considered internal. An Internal Billing document or Service Billing document should be used for internal Page 31 of 32

32 transactions. Only external customers are invoiced through the KFS Accounts Receivable Module. Q: If IU department A wants to use Foundation funds to pay IU department B for goods or services, does IU department B invoice through KFS AR or create an internal/service billing? Who is the customer in this situation? If the payment will be issued by IU Foundation, an invoice should be created in KFS AR with IU Foundation as the customer. Please refer to ARSOP 3.0 Invoicing Indiana University Foundation for specific requirements for these billings. Q: Can an IU department address be used for a customer who is also an IU employee? If an IU employee is purchasing goods or services for their personal use, a home address should be used instead of their work address. It is acceptable to use an IU address as part of the customer contact information. Q: What contact information is required by Non Student AR when setting up a customer? Non Student AR requires a telephone number and address or physical address at minimum before the customer will be approved. For collection purposes, it is strongly encouraged that all contact information be obtained from the customer. Q: Is it okay to use a campus address for a student, student organization, or business renting office space on an IU campus? Yes, IU addresses are only allowed for customers that actually reside or rent office space oncampus. The customer record initiator will be required to add a note to the customer record explaining that the customer resides or rents office space on-campus before Non-Student AR will approve the new customer request. Q: If the customer address I need to use is listed as an Alternate address, do I need to change it to Primary to use it on the invoice? No, regardless of whether an address is labeled primary or alternate in the customer setup, all active addresses within the customer setup can be used in the invoice. Page 32 of 32