Session ID 2019PSFT-101930 David Laden July xx, 2019 Streamline payment processing and collections with PS Accounts Receivable Session ID 2019PSFT-101930 David Laden July xx, 2019

David Laden Director Non-Sponsored Accounts Receivable University of Minnesota laden003@umn.edu Mr. Laden is currently Director of Non-Sponsored Accounts Receivable at the University of Minnesota where he oversees customer maintenance, billing, receivables, collections, and credit card operations and compliance. Previous to this he served as the Accounts Receivable and Billing Functional Lead for the University’s implementation of PeopleSoft Financials. Mr. Laden has previously held positions as Management Information and Business Analyst and as an Information Systems Consultant.

University of Minnesota Land grant University founded in 1851 Five campuses (Twin Cities, Crookston. Duluth, Morris, Rochester) 20+ off campus locations including Extension offices, Research and outreach centers 66,880 Students 20,389 Faculty & Staff $3.7 billion total operating expenses (FY2018)

University of Minnesota and Oracle PeopleSoft Financials July 2008 - Implemented version 8.9 April 2015 – Upgraded, version 9.2 (currently on Image 25) Modules used: General Ledger, Billing, Accounts Receivable, Treasury, Grants, Contracts, Project Costing, Procurement, Accounts Payable, Expenses, Commitment Control PeopleTools version 8.55.21 Oracle database version 12.1 Other software in financial system environment: Perceptive Content CLEAN_Address® Approximately 3750 financial system users

Abstract This session will explore the use of the PeopleSoft Accounts Receivable module for processing your organization’s receivables. Topics to be covered include customer maintenance, receiving payments (cash, check, EFT, and credit card payments), payment application, handling unidentified and unapplied payments, collections processes including statements of account, dunning correspondence, and customer conversations. The presentation will include discussion of design considerations, tips and tricks, and methods to monitor payment processing and open receivables. This session is applicable whether you are beginning your use of PeopleSoft Receivables or you have been using receivables and want a fresh look at some of the features.

Learning Objectives Learn how the use of PeopleSoft Accounts Receivable can improve efficiency and internal controls. Learn about design considerations for the use of PeopleSoft Accounts Receivable module. Learn how you can monitor activity in the PeopleSoft Accounts Receivable module.

Session Outline Introduction Customer Maintenance Accounts Receivable Receiving Payments Payment Application Collections Monitoring Payment Processing Open Receivables Concluding Thoughts Design Considerations  Internal Controls  Future Plans  Tips & Tricks

Session Outline Introduction Customer Maintenance Accounts Receivable Receiving Payments Payment Application Collections Monitoring Payment Processing Open Receivables Concluding Thoughts Design Considerations  Internal Controls  Future Plans  Tips & Tricks

Order to Cash Process Credit Analysis and Customer Maintenance Process customer set-up/maintenance requests & credit applications Request credit checks Maintain customer records Order Processing and Fulfillment Receive purchase order from customer Manufacturing, printing, picking, packing, shipping Consultation Provide services Leasing/renting Billing Prepare and enter billing information Generate and distribute invoices Payment Application Receive payments via cash, check, EFT, or payment card Enter payment information Apply payments Reconciliation Collections Generate and distribute statements of account Contact customers to collect past due amounts Research and resolve AR discrepancies Generate and distribute dunning correspondence Compile aging reports Accounting Research and resolve short-pays Process write-offs and adjustments Sales Tax Reporting GL reporting and reconciliation Order to Cash Process

Customers and Contacts PeopleSoft Modules Customers and Contacts Billing Receivables

Receivables Parameters Collector Credit Analyst Statement Group Dunning Group Payment Predictor Method

Questions?

Session Outline Introduction Customer Maintenance Accounts Receivable Receiving Payments Payment Application Collections Monitoring Payment Processing Open Receivables Concluding Thoughts Design Considerations  Internal Controls  Future Plans  Tips & Tricks

Customer Maintenance Design Considerations Single vs. multiple customer “files” Distributed vs. centralized maintenance function Level at which customer is set-up Attributes set at customer level Collector, Credit Analyst Statement Group Dunning Group Attributes optional at customer level

Customer Maintenance Billing Parameters AR Parameters Payment Predictor Method AR Parameters Collector Credit Analyst Statement Group Dunning Group Groups Attachments

7

Navigation: Customers > Contact Information

Customer Maintenance Single customer file for entire University system Sponsored and non-sponsored All campuses All colleges/administrative units Set-up maintained by single central group Customer typically set at highest organizational “level” address locations used for subsidiaries, divisions, etc. Bolt-on customer request process Address validation against USPS database

Customer Maintenance Future Considerations Rethinking “level” at which customers set-up Utilizing hierarchy built into PeopleSoft Proactive maintenance Incorporate additional features into custom customer request screen Automatic assignment of tax code Validate address earlier in process Systematic duplicate checking

Questions?

Questions?

Session Outline Introduction Customer Maintenance Accounts Receivable Receiving Payments Payment Application Collections Monitoring Payment Processing Open Receivables Concluding Thoughts Design Considerations  Internal Controls  Future Plans  Tips & Tricks

Payments and Remittance Information Invoices (from Billing) Accounts Receivable Payments and Remittance Information Open AR Items Invoices (from Billing) Apply Payments Closed Items

Payments and Remittance Information Accounts Receivable Payments and Remittance Information

Accounts Receivable Design Considerations – Receiving Payments Which payment types to accept? Cash, Check, EFT (ACH or Wire Transfer), Credit/Debit Card, Virtual Payment Card, Direct Debit Check payments Distributed or centralized check receiving and depositing, or Outsource check processing to lockbox service EFT payments Load via bank statement processing, separate bank file, or manually key Credit/debit card payments Use PS delivered functionality, eBill Pay, or capture credit card payments via another means Credit card fees Absorb centrally, allocate to colleges/departments, charge convenience fee

Navigation: Accounts Receivable > Payments > Online Payments > Regular Deposit

Accounts Receivable Accept cash, check, EFT (ACH and Wire Transfer), and credit/debit card (non-sponsored only) Cash payments are an exception process Utilize bank lockbox service for check processing Receive daily data file and image file Load separate EFT file from bank into AR module Use locally developed web application to accept credit/debit card payments Credit card fees allocated back to departments

Accounts Receivable Future Considerations Continue reinforcing throughout U community to send checks to bank lockbox EFT payments represent big opportunity for improvement Credit card payments – whether to continue maintaining our own web application Implement Direct Debit functionality

Questions?

Payments and Remittance Information Accounts Receivable Payments and Remittance Information Open AR Items Apply Payments

Accounts Receivable Design Considerations – Applying Payments Distributed or centralized payment application Method of application Oldest item, specifically referenced item Manually apply via payment worksheet Utilize payment predictor for automated payment application

Navigation: Accounts Receivable > Payments > Apply Payments > Create Worksheet

Accounts Receivable Utilize Payment Predictor with basic rules Minor modifications to “pre-process” payment data Fix problem with invoice numbering (leading zeros) Manually apply remaining payments via payment worksheet Always apply payments based on customer’s direction.

Accounts Receivable Future Considerations Continued refinement of the payment predictor methods Investigate using MICR information to identify Customer ID for use on payment worksheet

Accounts Receivable Design Considerations – Unidentified payments Leave as unapplied payment on worksheet Create On-Account item (OA entry type) Place all on a control customer record, or Identify customer and place on that customer’s account If item referenced already closed, apply to other items or refund? Design Considerations – Refunds Keep balances on account? For how long? What is trigger to refund to customer? Use delivered integration with Accounts Payable module?

Accounts Receivable Unidentified payments Refunds Leave as unapplied payment for short period of time Move all unapplied payments to “on account” by end of month On Accounts placed on customer record Separate process through queries that monitors on-accounts. Refunds Always take direction from customer on how to handle payment. Utilizing delivered integration with AP Modification to capture additional fields for AP Voucher

Accounts Receivable Future Considerations Refine methods of monitoring on-account payments Investigate alternate methods of refunding customers

Questions?

Accounts Receivable Design Considerations – Collections Statements of Account Balance Forward or Open Item Dunning Correspondence Customer Conversations Condition Monitor

Accounts Receivable Statements of Account Dunning Correspondence Open item Mailed to all customers with at least one invoice > 30 days overdue Dunning Correspondence Bolt-on modification to automatically e-mail dunning notices Customer Conversations Used to document all interactions with customers Queries to monitor past due accounts

Accounts Receivable Future Considerations – Collections Investigate whether additional queries paired with the Accounts Receivable WorkCenter could assist in the collection process Learn how Condition Monitor could assist in monitoring past due accounts

Questions?

Order to Cash Process Shared Service Model Credit Analysis and Customer Maintenance Process customer set-up/maintenance requests & credit applications Request credit checks Maintain customer records Communicate results to clusters Order Processing and Fulfillment Receive purchase order from customer Manufacturing, printing, picking, packing, shipping Consultation Provide services Leasing/renting Billing Prepare and enter billing information Receive sales data & billing information from clusters Generate and distribute invoices Provide support to clusters in billing best practices and system configuration Payment Application Receive payments via cash, check, EFT, or payment card Interface from third-party payment processors (lockbox, bank, payment card) Apply payments Reconciliation Collections Generate and distribute statements of account Contact customers to collect past due amounts Research and resolve AR discrepancies Generate and distribute dunning correspondence Compile aging reports Accounting Research and resolve short-pays Process write-offs and adjustments Sales Tax Reporting GL reporting and reconciliation Order to Cash Process Shared Service Model Tasks completed in departments and clusters Services provided by Accounts Receivable

Session Outline Introduction Customer Maintenance Accounts Receivable Receiving Payments Payment Application Collections Monitoring Payment Processing Open Receivables Concluding Thoughts Design Considerations  Internal Controls  Future Plans  Tips & Tricks

Monitoring Transactional Activity Open AR Use delivered Billing and Accounts Receivable pages Use WorkCenters Open AR Use delivered aging reports Use queries

Navigation: Accounts Receivable > Receivables WorkCenter

Monitoring Future Considerations Make greater use of WorkCenters Develop additional monitoring queries Learn how Condition Monitor could assist in monitoring Past due accounts, on-account payments

Session Outline Introduction Customer Maintenance Accounts Receivable Receiving Payments Payment Application Collections Monitoring Payment Processing Open Receivables Concluding Thoughts Design Considerations  Internal Controls  Future Plans  Tips & Tricks

Maximize your investment in PeopleSoft Other ways to use Billing and AR Transfer of funds from Foundation Recording point-of-sale credit/debit card activity Departmental Deposits

My Oracle Support Communities Receivables & Billing – PSFT (MOSC)

My Oracle Support Communities Receivables & Billing – PSFT (MOSC)

Want further conversation Attend Billing/AR Roundtable

Additional RECONNECT sessions: AR Session Date/Time Previous RECONNECT session: Payment Predictor

Please complete a session evaluation Session ID: 123456 Contact Info: email@email.com Tel: 555.555.1234