1. NON-STUDENT INVOICING Presented by John Brandt, Stacie Hurley and Karen Diaz April 17 & 18, 2012 1

2. Non Student Accounts Receivable (NSAR) System Is the Unrestricted Accounting billing system Is used to bill external customers External customers are outside of the UNM campuses system External customers typically pay using checks, but sometimes use cash, credit cards, or wire payments (electronic funds transfer) UNM Hospital (UNMH), UNM Medical Group (UNMMG), and Sandoval Regional Medical Center (SRMC) are considered external customers 2

3. UNMH, UNMMG and SRMC Transactions There are ongoing transactions for goods and services between UNM Departments and UNMH/UNMMG/SRMC incurred on Unrestricted Funds These include MOUs and salary agreements 1.Goods and services, provided by UNM Departments to UNMH/UNMMG/SRMC, are billed by HSC Unrestricted Accounting office using the NSAR system 2.Goods and services, provided by UNMH/UNMMG/SRMC to UNM Departments, are billed by UNMH/UNMMG/SRMC offices through FUPLOADs once per month, and given to HSC Unrestricted Accounting office for processing 3

4. UNMH, UNMMG and SRMC Transactions All billings to and from UNM Departments and UNMH/UNMMG/SRMC must go through the HSC Unrestricted Accounting office To learn more about these processes, see our LEARN called “Financial Interactions – Hospital and UNM” at our website (presented 11/9/09) http://hsc.unm.edu/financialservices/accounting/LEARN.shtml 4

5. Important Information Departments may not invoice external entities outside these approved systems, to do so is to invite UNM Internal Audit to camp at their doorstep. When a department invoices outside approved systems, the accounts receivable are not posted to Banner General Ledger, cash application cannot be verified and the accounts are not properly aged or allowed for. Memo regarding invoicing external entities 5

6. NSAR System Activity 6

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9. Top 10 Advantages of Using the NSAR System 1.Did we mention that you are in compliance with UNM policy 2.We create collection letters, and do the allowance for doubtful account calculations and create the bad debt reserve JVs on any uncollected invoices 3.We post the payments and process the money lists for you 4.We print and mail the invoices, send copies to you along with your aging reports 5.We do almost all the work for you 6.You can access a variety of information and generate reports 7.You are in compliance with UNM policy 8.You do not have to wait to receive a payment to recognize your revenue when using NSAR 9.You have more time to work on other tasks 10.You do not pay for postage or copy paper 9

10. NSAR Billing Cycle 2. Invoices are keyed in NSAR (backup docs sent to Unrestricted Acctg offices 3. 16th and 1st day of month, invoices are printed, scanned and mailed 4. Checks/payments are received and logged into a check log 5. Payments are posted in NSAR; Money lists are created and taken to UNM cashier to be deposited 6. Aging reports are printed and analyzed 7. Collection letters & bad debt JVs are processed as needed 1. Depts send to Unrestricted Acctg requests for detail codes and customer IDs 7-Step Life Cycle of NSAR Invoices 10

11. NSAR Billing Cycle Separation of Duties are important for internal controls and for compliance with various UNM Business policies For instance, HSC Campus Unrestricted Accounting: 1.Accounting Supervisor creates detail codes and customer IDs 2.HSC departments create the non-UNM external invoices 3.HSC Unrestricted Acctg A/R Coordinator creates the invoices for UNMH, UNMMG and SRMC 4.HSC Unrestricted Acctg A/R Coord prints/scans/mails the invoices 5.HSC Admin Assistant receive and log checks 6.HSC Fiscal Svcs Tech posts checks in NSAR and creates money lists 7.UNM cashiers process the deposits for money lists 8.HSC Unrestricted Acctg personnel do daily, month-end, and year-end reconciliations such as Live Check log vs. money lists, NSAR Ledger vs. General Ledger, and aging schedules 11

12. NSAR Billing Cycle 2. Invoices are keyed in NSAR (backup docs sent to Unrestricted Acctg offices 3. 16th and 1st day of month, invoices are printed, scanned and mailed 4. Checks/payments are received and logged into a check log 5. Payments are posted in NSAR; Money lists are created and taken to UNM cashier to be deposited 6. Aging reports are printed and analyzed 7. Collection letters & bad debt JVs are processed as needed 1. Depts send to Unrestricted Acctg requests for detail codes and customer IDs 7-Step Life Cycle of NSAR Invoices 12

13. Before Requesting a New Customer, determine if this customer is paying using Federal Funds You must first determine: Is the new customer paying using federal funds or federal pass-through funds? Yes Contact Pre-award to determine if will bill thru C&G or NSAR No Contact Unrestricted Accounting to create a customer ID number Provide customer name, physical billing address, contact person, contact phone 13

14. Requesting Customer IDs & Detail Codes What is a Customer ID number? A customer ID is created to set up an account for a customer The number issued is used in Banner form TFADETL to bill the customer, post payments and credits A customer can be a company, organization, educational institution, person, etc. Billing information to give to Unrestricted Accounting – the name of the customer, physical billing address, contact person, contact phone number Verify information is correct before request HSC NSAR customer numbers start with “Y” and Main Campus NSAR customer numbers start with “N” An example of a Customer ID number to be used later is Y01571497 14

15. Requesting Customer IDs & Detail Codes What is a Detail Code? A detail code is needed to post an invoice into the NSAR system A Core Office person creates the detail code in Banner Each detail code is unique; it is used for a particular good or service, and is created with a short description The requestor provides the index where the revenue is to be posted It is programmed to post a transaction to a debit and a credit in the system The debit posts as a receivable to the General Ledger (balance sheet) The credit posts as a revenue to the Operating Ledger Once the billing is posted in TFADETL, the Detail Code used creates the accounting entry An example of a detail code to be used later is YD71: 1.Debit - 099311 A224 3U0064 2.Credit - 099311 07Z0 3U0064 15

16. TFADETC – Detail Code Control Form 16

17. Requesting Customer IDs & Detail Codes E-mail these contacts when requesting a new customer or new detail code: HSC Unrestricted Accounting To: John Brandt – jobrandt@salud.unm.edujobrandt@salud.unm.edu Cc: Stacie Hurley – shurley@salud.unm.edushurley@salud.unm.edu Main Unrestricted Accounting To: Justin Walters – jwalters@unm.edujwalters@unm.edu Cc: Karen Diaz – kdiaz01@unm.edukdiaz01@unm.edu 17

18. NSAR Billing Cycle 2. Invoices are keyed in NSAR (backup docs sent to Unrestricted Acctg offices 3. 16th and 1st day of month, invoices are printed, scanned and mailed 4. Checks/payments are received and logged into a check log 5. Payments are posted in NSAR; Money lists are created and taken to UNM cashier to be deposited 6. Aging reports are printed and analyzed 7. Collection letters & bad debt JVs are processed as needed 1. Depts send to Unrestricted Acctg requests for detail codes and customer IDs 7-Step Life Cycle of NSAR Invoices 18

19. Keying Invoices into NSAR You must be trained on the NSAR system and have the BAR roles before you can use NSAR HSC Departments can key non-UNM external customers Only HSC Unrestricted Accounting keys invoices billed to UNMH, UNMMG and SRMC All back up documents for invoices keyed by Departments, that need to be mailed with invoices, should be sent to the Unrestricted Accounting offices no later than the end of the next invoice cycle For invoices to be billed to UNMH, UNMMG or SRMC, all backup documentation must be sent with the request to the HSC Unrestricted Accounting office before the invoice can be created 19

20. Keying Invoices into NSAR After invoice is keyed into TFADETL, saved, and the session closed: 1.The amount billed will post as revenue to the index after night train is run 2.The amount billed will post as a receivable to the fund after night train is run 3.The billing will post on the same transaction date as the invoice was keyed, but only if the session was closed using TGACREV The following Banner screen shots illustrate how a billing transaction is posted Detail code YD71: 1.Debit - 099311 A224 3U0064 $1,091.15 2.Credit - 099311 07Z0 3U0064 $1,091.15 20

21. Keying Invoices into NSAR 21

22. 22 Keying Invoices into NSAR

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24. Keying Invoices into NSAR 24

25. Keying Invoices into NSAR 25

26. Keying Invoices into NSAR 26

27. NSAR Billing Cycle 2. Invoices are keyed in NSAR (backup docs sent to Unrestricted Acctg offices 3. 16th and 1st day of month, invoices are printed, scanned and mailed 4. Checks/payments are received and logged into a check log 5. Payments are posted in NSAR; Money lists are created and taken to UNM cashier to be deposited 6. Aging reports are printed and analyzed 7. Collection letters & bad debt JVs are processed as needed 1. Depts send to Unrestricted Acctg requests for detail codes and customer IDs 7-Step Life Cycle of NSAR Invoices 27

28. Invoices are printed, scanned and mailed Unrestricted Accounting offices handle the printing and mailing of invoices NSAR invoices are marked with Unrestricted Accounting offices’ return address for customers to mail payments HSC Invoices are printed twice per month, 16 th and 1 st Main Campus invoices are printed monthly on the 1st During June, for year-end close, HSC invoices are printed 3 times per month - 11 th, 21 th, July 1 st Invoices are scanned, then scans are e-mailed to Departments for their files Invoices and any backup are mailed to the customers Copies of invoices and backup are kept in files at Unrestricted Accounting offices 28

29. NSAR Billing Cycle 2. Invoices are keyed in NSAR (backup docs sent to Unrestricted Acctg offices 3. 16th and 1st day of month, invoices are printed, scanned and mailed 4. Checks/payments are received and logged into a check log 5. Payments are posted in NSAR; Money lists are created and taken to UNM cashier to be deposited 6. Aging reports are printed and analyzed 7. Collection letters & bad debt JVs are processed as needed 1. Depts send to Unrestricted Acctg requests for detail codes and customer IDs 7-Step Life Cycle of NSAR Invoices 29

30. Checks/payments are received at Unrestricted Accounting offices One employee receives payments: 1.A witness assists with opening the mail, and observes the handling of checks/cash 2.Checks/cash received are logged into a password, protected spreadsheet (check log) 3.Checks are date-stamped and endorsed immediately Checks and cash are put in a locked box and given to another employee, who posts payments in NSAR and creates the money list 30

31. NSAR Billing Cycle 2. Invoices are keyed in NSAR (backup docs sent to Unrestricted Acctg offices 3. 16th and 1st day of month, invoices are printed, scanned and mailed 4. Checks/payments are received and logged into a check log 5. Payments are posted in NSAR; Money lists are created and taken to UNM cashier to be deposited 6. Aging reports are printed and analyzed 7. Collection letters & bad debt JVs are processed as needed 1. Depts send to Unrestricted Acctg requests for detail codes and customer IDs 7-Step Life Cycle of NSAR Invoices 31

32. Post payments and create money lists A different employee posts the payments in the NSAR system the next working day Any payments by wire transmittal or credit card are also posted at this time Once payments are posted and balanced, this person creates the money list and takes it to UNM Cashier’s office that same day The UNM Cashier’s office is responsible for making the deposit at the bank The payment will clear the Accounts Receivable amount for that particular billing as a credit and post the payment as cash in the assigned UNM Bank fund as a debit The following Banner screen shots illustrate how the payment for the previous billing transaction is shown as posted and cleared In TFADETL (billing screen), payment shows as detail code YP01 for HSC and NP01 for Main Campus 32

33. Post payments and create money lists 33

34. Post payments and create money lists 34

35. NSAR Billing Cycle 2. Invoices are keyed in NSAR (backup docs sent to Unrestricted Acctg offices 3. 16th and 1st day of month, invoices are printed, scanned and mailed 4. Checks/payments are received and logged into a check log 5. Payments are posted in NSAR; Money lists are created and taken to UNM cashier to be deposited 6. Aging reports are printed and analyzed 7. Collection letters & bad debt JVs are processed as needed 1. Depts send to Unrestricted Acctg requests for detail codes and customer IDs 7-Step Life Cycle of NSAR Invoices 35

36. Aging reports are printed and analyzed First business day of each month, aging reports are run and printed Department aging reports are sent to Departments based on current billings Reports are analyzed based on age of invoices, invoice amounts, duplications, total balances, etc. Totals are balanced to the General Ledger An example of an Unrestricted Aging Report is on the next slide 36

37. Aging reports are printed and analyzed 37

38. NSAR Billing Cycle 2. Invoices are keyed in NSAR (backup docs sent to Unrestricted Acctg offices 3. 16th and 1st day of month, invoices are printed, scanned and mailed 4. Checks/payments are received and logged into a check log 5. Payments are posted in NSAR; Money lists are created and taken to UNM cashier to be deposited 6. Aging reports are printed and analyzed 7. Collection letters & bad debt JVs are processed as needed 1. Depts send to Unrestricted Acctg requests for detail codes and customer IDs 7-Step Life Cycle of NSAR Invoices 38

39. Collection Letters & Bad Debt JVs Collection letters process Unrestricted Accounting processes the collection letters for all the Departments Collections letters are generated and mailed for any invoices aged over 60 days There can be up to 3 Collections letters: 1.1 st letter – for an invoice that is more than 60 days old 2.2 nd letter – for an invoice that is more than 90 days old 3.3 rd and final letter - for an invoice 121 days or older It is up to the Departments to contact their customers for payments 39

40. Collection Letters & Bad Debt JVs Bad Debt JVs process A bad debt reserve is calculated quarterly using the A/R Aging Report based on a percentage of the outstanding days of the invoices (receivables) for each Department Any invoices aged over 120 days are reserved as a bad debt for 100% of the amount of the invoice Unrestricted Accounting does the Allowance for Doubtful Accounts analysis, and creates the Bad Debt Reserve JV The reserve amount for the total invoices can increase or decrease The JV amount can post as a debit or credit on a Department’s Operating Ledger to account code 98A0 – Bad Debt Expense 40

41. NSAR Training, Resources and Contacts Training: You must be trained on the NSAR system and have the BAR role before you can use NSAR The 2 BAR roles needed are: 1.Department Accounts Receivable Query 2.Department Accounts Receivable Processor NSAR training is done by the Unrestricted Accounting Offices, not EOD NSAR training can be done one-on-one or for several persons at a time A Manual is given at the training The 2 BAR roles will not be approved until training is completed 41

42. NSAR Training, Resources and Contacts Resources: NSAR Manual NSAR Class Non Student Accounts Receivable Website: http://hsc.unm.edu/financialservices/accounting/NSAR.shtml (grey box on left side of the HSC Unrestricted Accounting Website) 42

43. NSAR Training, Resources and Contacts Contacts: HSC Unrestricted Accounting: Stacie Hurley - A/R Coordinator 272-5460 shurley@salud.unm.edu John Brandt - Unrestricted Accounting, Supv 925-4567 jobrandt@salud.unm.edu Laura Putz - Unrestricted Accounting, Mgr 272-0160 lputz@salud.unm.edu Main Unrestricted Accounting: Karen Diaz - Fiscal Services Tech 277-2055 kdiaz01@unm.edu Justin Walters – Accountant III 277-0057 jwalters@unm.edu Doug Nelson – Unrestricted Accounting, Mgr 277-0156 denelson@unm.edu 43

44. Banner Demonstration In Banner, will demonstrate the following tasks: How to look up a customer using FOAIDEN How to input invoice using TFADETL How to post a credit using TFADETL How to export data from TGIACCD 44

45. Questions ?? 45