Non-student (External) Accounts Receivable System

Overview Decentralized system allows departments to manage their own receivables Payments are sent to a lockbox (internal or through a bank) which is processed centrally Accounting entries are automatically generated through eDocs which can be routed for approval or as an “FYI”

Organization Roles Billing Organization: Department that provides goods and/or services to external customers. Responsible for creating and mailing invoices to customers. Each Billing Organization reports to a Processing Organization. Processing Organization: Unit (typically centralized) that processes payments for Accounts Receivable invoices. Each Processing Organization processes payments on behalf of 1 or more billing organizations.

Organization Relationships Processing Organization Billing Organization Customer Relationship Mgmt Banking, Remit, and Payment Functions

Process Flow Billing Org generates & mails invoice –Includes a remit slip Customer mails payment with slip to lockbox (either a bank or campus feed) Bank/Cashier tenders funds, sends paperwork to processing organization, and uploads a file to KFS Processing Org applies unmatched pmts (matched pmts post automatically)

Demonstration Kuali Financial System Come experience AR for yourself! AR lab today at 11:00am

System Configuration Parameters

Receivable Method Allows implementation of cash basis (revenue shown net of receivable balance) –Receivable object code controlled by Chart, or Sub-Fund Group Or accrual basis (revenue in one account, receivable held elsewhere in the Chart/Account/Object entered by the user, with defaults provided)

Sales Tax If enabled, checks to make sure the item, customer, and sale are taxable Calculates the tax due based on state, county, and postal code of delivery Recognizes liabilities to tax authorities on the general ledger Write-offs can either reduce tax payable or not

Write-Off Method Bad debt recorded in the account which received the revenue originally, or Bad debt recorded in a central account by billing organization

Maximum Invoice Recurrence Specifies the maximum number of invoice recurrences –Some schools may want to limit billing organizations to 1, 2, 3, … years, quarters, months, … worth of billing before they need to reaffirm the underlying invoice

Maximum Customers / Batch Controls the largest size batch of customer data that may be uploaded in a single batch –Limits exposure to errant data uploads

Credit Terms Permits institutions to establish a maximum amount of time (days between invoice generation and due date) credit may be extended

Aging Buckets KFS comes with standard 30, 60, 90 day aging buckets Institutions may define the last buckets to be , , or any other value that is useful to them Can also run an aging report retroactively for a prior date

Remit Name & Address Controls whether Billing Organizations have the ability to manipulate the Remittance Name and/or Address

Enhancements After Release 3.0

Statement Flexibility Additional statement / invoice enhancements to permit flexibility in the invoice body are slated for Release 4.0, primarily to support C&G receivables.

Others Invoice feeding (1,000 hrs) Support for centralized collection and bankruptcy management activity (1,800 hours) Streamline of customer overpayment processing (700 hours) Tracking of memo or “unbilled” amounts (400 hours)