Billing and AR in FAST

1. Billing and AR in FAST

2. Billing Is Used For Two Purposes

3. The 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. The Commercial Stream • Commercial (external) customers include • All DSOs like Moffitt, USF Foundation, USF Research Foundation, and the Sun Dome activities • Plus all private businesses, state universities, state agencies, counties, cities and individuals • Hint • The billing module is not for billing other USF departments • Use a journal entry form for interdepartmental billings

5. The Billing Process Disbursement 1 Department makes the sale to the customer 7 USF accepts cash, checks, or bank cards 2 UCO creates the customer ID 6 Collect the money from the customer 3 Departments create the customer invoice 4 Overnight processing occurs 5 UCO prints the invoice and sends to Customer

6. Who Does What Task? Who Does What Task? • 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 and write-off • 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

7. New Customers and Customer Updates? • 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”

8. 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

9. About Invoices • 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 • 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

11. 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

12. Cornerstones • 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 zeroes

13. 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

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

15. 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 billings to other USF departments

16. 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

17. 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.

18. Sales Tax • 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)

19. 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)

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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”

26. 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

27. 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

28. 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

29. 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

30. Alternate Payment Methods • Customers may also pay by credit card • We accept VISA, MasterCard, American Express or DiscoverCard • 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

31. 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 • Find the EFT/ACH Authorization Form on the Controller’s Office web site; click “Accounting and Reporting”, then click “Forms”

32. What if you receive a payment in the mail? • Take the payment immediately to the cashier office • Do not send to the cashier by campus mail

33. 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

34. 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

35. 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

36. 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@admin.usf

37. 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

38. Where Do You Find Information • In Finance Mart • The Balance Sheet has deposits and customer payments • Financial Report Summary and Revenue Detail have billing info • 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

39. 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

40. Common Journal Masks • ARB Invoicing accounting • A debit to accounts receivable and a credit to revenue • ARP Customer payment accounting • A debit to cash and a credit to accounts receivable • ARC Customer payments; no FAST invoice • A debit to cash and a credit to revenue • ARM Maintenance entries made by AR Office

41. Let’s Get To Work !