Billing and AR in FAST

1. Billing and AR in FAST

2. Billing Is Used For Purposes

3. The Non-Sponsored/Commercial Stream • It all begins with an approved EBA • Educational Business Activity (EBA) approval by UCO is required • It gives authority to conduct a business activity and helps USF comply with UBI (unrelated business income) requirements • It defines what you are selling, your customer base, your costing, your management structure • Controller’s Office will create a unique auxiliary fund to which you deposit revenue and pay expenses • Find EBA information on the Controller’s Office web site or on USF Business Processes www.usf.edu/businessprocesses

4. Auxiliary Guidelines • Find Auxiliary operation guidelines on the UCO web site • Search under Accounting and Reporting; then the Forms page • The USF Auxiliary Guidelines document includes: • Types of auxiliaries • Recharge centers • Budgeting and reporting • Accounting guidelines • Components of costs • Be familiar with these guidelines before beginning auxiliary business

5. The Commercial Stream • Commercial (external) customers include • All private businesses, state universities, state agencies, counties, cities and individuals • The billing module is not for billing other USF departments • Use a journal entry form for interdepartmental billings

6. The Billing Process Department makes the sale to the customer Collect the money from the customer UCO creates the customer ID UCO prints the Invoice and sends to Customer Department creates the customer invoice Overnight processing occurs

7. Who Does What Task? • University Controller’s Office • Creates and modifies customer records • Manages nightly processing • Prints and mails invoices to the customer • Creates all credits • Assists with collection from customers • Provides training • Departments • Request EBA authority • Find the customers • Provide the service • Request customer setup • Create the billings • Pursue collection from customers • Reconcile billings, payments, and AR balances • Request refunds, billing corrections, and write-offs

8. New Customers and Customer Updates? • The customer is the basis for billing • Customers have ID’s based on the department • Always the bill source followed by four digits • The digits are auto-assigned beginning with 1001 • Example of a customer ID for IT • ITS1007 Information Technology Services customer # 1007 • Complete a simple one page request form • To request a new customer record • To request an update to an existing customer record • Mail the form to ARCUST (find it in Outlook) • We handle the request through Service Now • We will notify you when the customer is setup • Find the form on the Controller’s Office web site; click “About UCO”, then click “Billing and AR Forms”

9. About Invoices • Invoice Ids are standardized • They begin with the department billing source • The bill source is a three letter prefix representing your auxiliary • Bill source is followed by a dash • Dash is followed by a five digit number • Auto-assigned by FAST beginning with the number 00001 • Example of an IT invoice number • ITS-02000 • Invoices are printed on plain paper • Invoices have everything the cashier needs to identify the payment (customer ID, invoice number, and amount) • Customers paying by check are asked include a copy of the invoice with their payment to a USF lock box

10. Cornerstones • Charge codes identify what you sell to the customer • They appear on the invoice • They begin with the three letter bill source • The bill source is followed by a dash and a description • Example of a charge code for a USFSP auxiliary • CAC-COMREV • This is the charge code for Campus Activities Center revenue ------------------------------------------------------ • Distribution codes are the chart field strings that drive the accounting entries • They are attached to every charge code • The chart fields: • Operating Unit Required field • Fund ID Your auxiliary fund ID • Account Must begin with 44 • Department ID Required field • Product Must be populated but may be 000000 • Initiative Must have 7 zeros

11. Cornerstones • Distribution codes begin with the billing source ID followed by an alpha/numeric description • For example Campus Activities Center has charge code for services they offer; this is the distribution code behind it

12. Cornerstones • Always use only your department’s billing source for • Customer ID • Invoice ID • Charge code ID • Distribution Code ID • Request new charges codes and distribution codes and updates to existing codes billingarhelp@usf.edu • Find the form at www.usf.edu/business-finance/controller

13. Revenue Budgeting • You must forecast your revenue through the Budget Module (Commitment Control) • Budget by individual chart field string • This includes billings to outside customers and Interdepartmental Billings with other Departments

14. Revenue Budgeting • There are consequences… • You can finalize the billing, print it, and send it to the customer • But it will not post to the GL • Cashiers will be unable to post payments against the invoice • If billings fail budget checking… • You will receive an email to remind you to make the necessary budget adjustment • The email will have the accounting information that you need

15. Sales Tax • Your customers may or may not be subject to Florida sales tax • In order to exempt a customer from sales tax, you must obtain a copy of that entity's "Florida Certificate of Exemption" which is Form DR-14.  That is the ONLY way we can extend to anyone an exemption from Florida sales tax.  If we have no Form DR-14, the default is to charge sales tax on the sale of tangible personal property or rentals. • Some of what you sell may be subject to Florida sales tax • It is a complex set of law that can have profound impact on USF • Visit the Controller’s Office web site (click Payroll & Tax Services) or contact Michelle Verdisco (813.835.2264 or look for her in Outlook)

16. UBI (Unrelated Business Income) • To ensure compliance with our non-profit status, we must correctly identify all unrelated business activity • It is a complex set of law that can have profound impact on USF • Record amounts of UBI for each line on the “Line Misc Info” page • Visit the Controller’s Office web site (click Payroll & Tax Services) or contact Michelle Verdisco (813.835.2264 or look for her in Outlook)

17. Customer Notes • To help your customer and provide them the information they need to expedite payment, use customer notes • Add a header note or individual line note • Provide information like: • The customer’s PO number • Date of service, type of service • Names of individuals

18. Collecting Accounts Receivable • USF AR is aged • 20 day “grace” period • 0-30 days, 31-60, 61-90, 90 days and over • During the first 90 days of aging… • Department attempts collection • By calling customer • By e-mailing customer • By sending a copy of the invoice to the customer

19. The AR Office Can Help You • When the debt reaches 90 days… • The AR Office reviews 90 day AR items • AR Office contacts the department to discuss options • Consider using our contracted collection agency

20. AR Reporting • AR aging tools include • An AR aging report in the AR module (pdf format) • An AR aging report that UCO sends out quarterly (Excel format) • Public queries

21. Professional Collection Is An Option • If you use one of our contracted collection agencies… • The agency charges a percentage fee contingent upon actual amount collected • You may pass this fee on to the customer only if adequate advance written notification has been given to the customer prior to the sale • Otherwise, the department must pay for the collection fee from sources of your choosing

22. Correcting/Adjusting Invoices • Customers may need to be issued a credit due to • A duplicate billing • An incorrect billing (wrong amount, quantity, etc.) • Only the UCO AR office may create credits – Separation of duties issue • Prepare credit requests on the billing correction form • Find it on the Controller’s Office web site; click “About UCO”, then click “Billing and AR Forms”

23. What About Bad Debts? • Write-off should be considered only after all collection efforts have been unsuccessful • Departments should carefully document collection effort • Use the standard format for requests (contact UCO AR Office) • Submit write-off requests to the UCO AR Office Manager

24. What About Bad Debts? • With the request, include: • List of all invoices with invoice ID and Customer ID • Customer name • Invoice date • Original invoice amount • Amount to be written off • Description of collection effort

25. Write-off Entries • The UCO AR Office will review the request and obtain the required approval of the USF Controller • The UCO AR office will create the write-off entries • You will be notified when the write-off action is completed

26. How Can The Customer Pay • Customers are asked to return a copy of the invoice with check payments directly to the USF Lock Box • The Lock Box address is: • University of South Florida • Commercial Accounts • PO Box 864568 • Orlando, FL 32886-4568 • Only a USF Cashier Office may handle payments made in person at USF

27. Alternate Payment Methods • Customers may also pay by credit card • We accept VISA, MasterCard, American Express or DiscoverCard but never a USF Pcard • Customer may pay on-line (preferred method) • The web site address is www.usf.edu/commacct • Customer will need to identify the invoice number and customer ID • This is for invoices of $10,000 or less • Invoices over $10,000-customer should consider EFT or check format • Customer may pay at USF Tampa • Pay at the kiosk in the cashier lobby using the commercial account portal • Customer will need to identify the invoice number and customer ID • This is for invoices of $10,000 or less

28. Alternate Payment Methods • Customers may also pay by EFT • State agencies, government units, and other state universities should pay by either EFT or check; they should not pay by credit card • To setup a customer for EFT/ACH • Contact Cheryl Tanner in General Accounting; ctanner@usf.eduor 974.7827

29. What if you receive a payment in the mail? • Take the payment immediately to the cashier’s office with information the cashier’s office can use to apply the payment. • Customer ID • Invoice ID • Do NOT send to the cashier by campus mail

30. What if Customer Payment Does Not Clear? • If the customer check is returned NSF by the bank • All returned checks are managed by the UCO (Controller’s Office) • Amy Murray is the key person • A new receivable is created • A series of letters are sent to collect from the customer • Customer is charged a flat $25 fee

31. Applying a Payment To An Invoice • To apply a payment, Cashier must have • A customer ID or • An invoice ID • Cashiers apply the payment and close the invoice • Payment application automatically closes the invoice • The cash will be added to your auxiliary fund

32. If The Cashier Cannot Identify A Payment • The Cashier will research to the best of their ability • If a check can not be identified, it is recorded by journal entry to suspense: fund 18570, GL code 12120 • When the check is finally identified, it will be corrected and correctly applied • Unidentified payments, both checks and EFT, may be viewed on the UCO web site under Library of Resources

33. What About Customer Refunds? • Customers may overpay or pay twice • Departments request customer refunds from AR Office • Before requesting a refund, determine that there are no other open (unpaid) invoices for that customer • Use the customer refund form on the UCO web site • Be sure to correctly identify the original deposit • Submit refund requests to aradj@usf.edu

34. Don’t Forget To Reconcile • Reconcile invoices/billings • Confirm that everything that should have been billed, was billed • Confirm that the billing amounts were correct • Confirm that billing adjustments have posted correctly • Reconcile customer payments • Confirm that the payments were applied to the correct invoices • Do this monthly

35. Where Do You Find Information • In Finance Mart • Use the Balance Sheet to reconcile deposits and customer payments • Use the Financial Report Summary and Revenue Detail to reconcile billing detail • In the Billing module • Billing/Review Billing Information/Details for detail invoice information • In the AR module • Accounts Receivable/Receivables Analysis/Aging for AR reports • Accounts Receivable/Customer Information/Item Information for invoice payment details

36. Common GL Accounts in Billing • 10011 Payment made by cash or check • 10061 Payment made by credit card • 10091 Payment made by EFT • 12010 Commercial Accounts Receivable-FAST • 44### Commercial revenue account series

37. Common Journal Masks • ARB – Invoicing accounting – DR to Accounts Receivable/CR Revenue • ARP – Customer payment accounting – DR Cash/CR Accounts Receivable • ARC – Customer payments; no FAST invoice – DR Cash/CR Revenue • ARM – Maintenance entries made by AR Office • EFT – Customer payments by electronic funds • UCO – Customer payments received through TouchNet

38. Let’s Get To Work !