Public Sector Accounts Receivable Billing
Nonprofit and public sector organizations require the ability to effectively manage receivables for
services rendered to their customers or citizens in accordance with their laws and policies. At a
minimum, these organizations require an ERP accounts receivable solution to broadly provide the
ability to:

Organize and report revenue collection by department or revenue activity.

Create and apply predefined charges on invoices.

Generate invoices in batches and send invoice statements to customers.
With the introduction of Microsoft Dynamics® AX 2012 Public Sector, the accounts receivable module
has been enhanced with functionality to directly help nonprofit and public sector organizations
manage their receivables in an efficient manner.
BILLING CLASSIFICATIONS: SEGREGATING RECEIVABLES BY DEPARTMENT OR REVENUE
COLLECTION ACTIVITY
A nonprofit or public sector organization typically has multiple departments or activities
that generate revenue. In Microsoft Dynamics AX 2012 Public Sector, billing classifications
can be created and used to segregate receivables by these departments or revenue
collection activities. Through the use of billing classifications, you can:
Easily locate or isolate invoices by their billing classification.
Define billing classification policies (such as terms of payment or interest and penalty
terms) that are used as default values on invoices that are assigned to the billing
classification.
Associate predefined charge codes to a billing classification that are then available on
invoices that belong to the billing classification for quick application of charges on
invoices.
Define and optionally enable the priority of settlements (for example, payment of
property tax before water or sewer charges).
Filter by classification on reports for information specific to a department or activity.
Optionally enable
settlement priority in
accounts receivable
parameters
BILLING CODES: PREDEFINED CHARGES ASSOCIATED WITH BILLING CLASSIFICATIONS
Billing codes provide a quick way to insert common values on invoice lines for specific
charges. Billing codes must be associated with a billing classification before they can be
used. Once an invoice is associated with a billing classification, a list of available billing
codes associated with that classification is presented on the invoice lines. In Microsoft
Dynamics AX 2012 Public Sector, you can use billing codes to:
Specify default terms applicable on invoice lines (such as sales tax and interest terms).
Designate account distributions on invoice lines and optionally restrict the
modification of these distributions by accounts receivable clerks.
Determine invoice line amounts by using a flat rate for the invoice line, or by
Specify accounting
distributions
specifying a unit price. Accounts receivable clerks can optionally be restricted from
modifying amounts on invoice lines.
Define and use rate scripts that can leverage database fields to perform rate
calculations that determine invoice line amounts.
Create custom fields with various data types to collect specific information that can
additionally be leveraged with rate scripts for dynamically calculating invoice line
amounts.
Associate invoice lines with projects entered in the Projects module.
Define custom fields
Specify project details
INVOICING: USING BILLING CLASSIFICATIONS AND BILLING CODES
A core function of the accounts receivable team in an organization is to invoice customers
or citizens for services rendered or taxes due. In Microsoft Dynamics AX 2012 Public
Sector, an organization that has departments or revenue-generating activity can create
billing classifications and associate each classification with multiple billing codes. Creating
an invoice for a customer involves the following steps:
Specify the customer value on the invoice. This defaults any values that are set in the
customer details, including financial dimensions and payment terms on the invoice.
Select a billing classification. This associates the entire invoice and all related activity
to the specified classification.
Optionally specify a billing code on invoice lines. Use of billing codes associated with
the classification allows for default entries of required values on invoice lines. The
ledger accounts and line amounts can be modified subsequently if the billing code
allows it.
Enter custom billing code fields that are displayed in a separate dialog.
Calculate the rate automatically. If the billing codes have a rate script associated with
them, then the rate script is processed to determine the line amount. The rate script
also can provide details of the rate calculation in the line details.
Apply posting definitions to specify desired receivable offsets on the invoice.
Correct posted invoices with a record of the adjustment history.
Correct an invoice
RECURRING INVOICES: MASS INVOICING OF CUSTOMERS
Most charges for customers or citizens of nonprofit and public sector organizations are of
a recurring nature. Organizations periodically generate invoices that can have fixed
charges every invoicing period, or that have varying charges based on a measure captured
in one or more custom fields. In Microsoft Dynamics AX 2012 Public Sector, you can
create invoice templates and assign them to customers. Invoices can then be generated
based on the start date and frequency specified for each customer. The process of setting
up recurring invoices involves the following steps:
Create an invoice template. The invoice template is very similar to a standard invoice
and contains the values that will be defaulted on the generated invoice.
Associate the template with a customer. When associating the template with a
customer, the following can be specified: the start date of the invoice recurrence, the
Create recurring
invoice templates
frequency of the recurrence, (optionally) a maximum amount that can be invoiced for
the customer, and whether the defaults on the invoice should come from the
customer or from the invoice template.
Periodically generate invoices. Specify the invoice and generation dates, the
classification, and template to generate a recurring invoice batch containing invoices
for customers who are due for invoicing based on the specified start date and
frequency for each customer.
Post the recurring invoice batch.
Print the generated invoices by using a date range or by selecting specific customers.
Periodic customer statements also can be generated.
SUMMARY
Microsoft Dynamics AX 2012 Public Sector provides a complete solution for creating and
managing receivables by department or revenue activity for nonprofit and public sector
organizations. The solution is highly customizable to fit differing organizational needs
through the use of predefined charge codes, and with the use of rate scripts and custom
billing code fields.
Assign recurring
invoices to
customers
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business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and
streamlining financial, customer relationship and supply chain processes in a way that helps you drive business success.
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