1. Billing and Accounts Receivable FSUN Brown Bag April 14, 2015

2. Handout Available at FSUN website http://www.finsys.umn.edu/fsun/AR_Best_Practices.pdf

3. Order to Cash

4. Customer Set-up Personal or business address?

5. Customer Set-up E-mail addresses –Used as a primary means of contacting businesses and individuals –Used for automatic follow-up on unpaid invoices –Automatic e-mailing of invoices coming with the 9.2 upgrade

6. Purchase Order Numbers

9. ATTN:

11. SAMPLE EMAIL: Customer ID: 5023487 Customer Name: ABC COMPANY Dear JOHN SMITH This Email is to inform you that Invoice 2082566134 for $258.00 is 16 days overdue. Currently you owe $258.00 on this invoice.2082566134 Item Details: Please research and let me know when payment might be expected. ***TO PAY THIS INVOICE BY CREDIT CARD PLEASE GO TO WWW.PAY.UMN.EDU*** If paying by check, please make payable to "Regents of the University of Minnesota" and mail to: Regents of the University of Minnesota; NW 5960; PO Box 1450; Minneapolis, MN 55485-5960 Thanks, Daryl Accounts Receivable Services University of Minnesota 612/624-0849 612/626-3969WWW.PAY.UMN.EDU 612/624-0849 612/626-3969 InvoiceLineLine DescriptionQtyUnit AmountTaxLineTotal 20825661341 Mastitis Cow/Quarter Culture 43$6.00$0.00$258.00

13. Excel Billing Upload

14. Other Billing Tips Department printing of invoices Credit invoices Federal agencies

15. Banking Information & W-9

16. Checks Rec’d in Department Write invoice number and/or customer number on check

17. Misdirected checks

18. Payment Remittance Forward all remittance to: arpaymnt@umn.edu

19. Credit Card Payments pay.umn.edu 612-625-2392

20. Collections Statements of account Dunning e-mails Telephone calls Aging review Third-party collection agencies Revenue Recapture Program Office of the General Counsel

21. Dunning e-mails Customer Groupings –Customers grouped based on common follow-up parameters and payment behavior Government Group (Federal, State, and local government entities; schools and universities) Individual Group (individuals) Corporate (most everyone else)

22. Dunning e-mails Collection email verbiage – Increasingly blunt, first, second, and third email wording –Please research and let me know when payment might be expected. ***TO PAY THIS INVOICE BY CREDIT CARD PLEASE GO TO WWW.PAY.UMN.EDU*** If paying by check, please make payable to "Regents of the University of Minnesota" and mail to: Regents of the University of Minnesota; NW 5960; PO Box 1450; Minneapolis, MN 55485- 5960WWW.PAY.UMN.EDU –Please let me know when payment can be expected for the above referenced invoice. If you have any questions or need further information, don't hesitate to contact me… –Multiple emails have been sent requesting payment for the attached invoice - please give this matter the attention it deserves. Please let me know when payment can be expected… Collection parameters for each group –Days to first email follow up (15d overdue for CORP & IND, 35d overdue for GOV) –Days between subsequent email follow ups (7d)

23. Automated Collection Process Collection Monitor runs Mon – Fri at 2:00pm – emails automatically sent Department and AR Services can place items on “HOLD” – no further emails sent automatically Collector copied on all emails Follow up weekly on items with 4 th email Conversation automatically added to item stating that an email was sent No active email? Notification conversation added to item and followed up manually

24. SAMPLE EMAIL: Customer ID: 5023487 Customer Name: ABC COMPANY Dear JOHN SMITH This Email is to inform you that Invoice 2082566134 for $258.00 is 16 days overdue. Currently you owe $258.00 on this invoice.2082566134 Item Details: Please research and let me know when payment might be expected. ***TO PAY THIS INVOICE BY CREDIT CARD PLEASE GO TO WWW.PAY.UMN.EDU*** If paying by check, please make payable to "Regents of the University of Minnesota" and mail to: Regents of the University of Minnesota; NW 5960; PO Box 1450; Minneapolis, MN 55485-5960 Thanks, Daryl Accounts Receivable Services University of Minnesota 612/624-0849 612/626-3969WWW.PAY.UMN.EDU 612/624-0849 612/626-3969 InvoiceLineLine DescriptionQtyUnit AmountTaxLineTotal 20825661341 Mastitis Cow/Quarter Culture 43$6.00$0.00$258.00

25. Third-party Collection Agencies Accounts Receivable Services uses two 3 rd Party Collection Agencies Minnesota Department of Revenue (Primary) Used since September 2011 Agency of choice when Social Security no. (individuals) or Tax ID # (Orgs.) available Central Credit Services, LLC. (Secondary) Used since May 2014 Do not require SSN or Tax ID

26. Third Party Collections Process Third party referral begins when invoice reaches 120 days overdue and is deemed “uncollectible” Originating department ALWAYS contacted first – collections, write-off, or continue effort? Collections letter sent to customer – 20 days to respond No response – refer account to Agency

27. Aging Reports Aging by Chartfield UM Aging by DeptID Tree 0-30 Days 31-60 Days 61-90 Days 90+ Days

28. Other Reports Accounts Receivable Status by Chartstring

29. Other Reports Accounts Receivable Activity by Invoice

30. Transaction Detail

31. Journal ID –BI = Billing Module –ARR = AR Module – Receipt –ARM = AR Module – Maintenance –ARD = AR Module – Direct Journal (primarily Departmental Deposits) –CCF = Credit Card Fees –MC = Merchant Fees, chargebacks

32. Upgrade Changes Invoice Button Attachments E-mailing of Invoices Reprinting Invoices Adjust Bills – Approval Work Centers

33. Thank you! - Questions? Nicole Berg –612-625-0847 –bergx541@umn.edubergx541@umn.edu Steve Patrician –612-624-5475 –spatrici@umn.eduspatrici@umn.edu Darla Schroeder –612-626-7215 –schro077@umn.eduschro077@umn.edu David Laden –612-624-0929 –laden003@umn.eduladen003@umn.edu