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
Banking, Remit, and
Payment Functions
Billing Organization
Customer
Relationship Mgmt
Billing Organization
Billing Organization
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 91-120, 91-365, 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)