CFS AR/BI Module
University
Centralized
Billing and Cashiering
of Non-Student Invoicing
to Third-parties, including Auxiliary
CSUMB END USER TRAINING
April 24, 2013
Why is CFS AR/BI being implemented?
The Chancellor’s Office has mandated that all
CSUs implement the University Centralized
Billing and Cashiering of Non-Student Invoicing
to Third-parties, including Auxiliary
by May 1, 2013
What is the purpose of a Accounts
Receivable and Billing Module (AR/BI)?
• For tracking the money owed by customers
(individuals or corporations) to another entity
(CSUMB) in exchange for goods or services (may
be taxable) that have been delivered or used, but
not yet paid for.
• Provides historical data on customer charges and
payments.
• Provides current data on customer balances due. 3
Why does CSUMB track receivables?
• CSUs report income on the accrual basis of
accounting in accordance with GASB
(Government Accounting Standards Board)
guidelines. Accrual accounting requires the
recording of income when earned and expenses
when incurred.
• If have not received payment for goods and
services provided, need to invoice customer.
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What types of receivables should
CSUMB Univ. AR be billing for?
• Third-party transactions:
– Contractual goods and services including
prepayments and deposits
NOTE: For campus events Departments should be working
with ‘Conference and Events Services’ (CES) who invoice the
customer per contract. Departmental revenue and expense is
transferred once services have been rendered and not upon
collections of invoice.
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Cont’d
FYI: Invoicing covering payroll activity
invoicing is generated by Univ AR:
• MB570 or Trust: Send a copy of the payroll
adjustment (related to a project #) to Univ
AR clearly stating who to bill (name,
address and phone #) and who to contact if
Univ AR has questions.
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Cont’d
• Purpose of invoicing a contractual prepayment
–
–
–
–
If goods and/or services not rendered then prepayment may
be due back to the customer – then able to process refunds
thru CFS AR/BI
To verify payment is made according to contract, authority to
collect revenue and such revenue is permissible on the
University side
To track historical data on the customer
For tracking transactions between University and Auxiliary
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Cont’d
• Chargebacks to the University Corporation and the
Foundation including student activity
– Purpose: need to track for GAAP reporting purposes
therefore all transactions need to be invoiced; do not net
what is payable against what is receivable.
• This includes formal and informal financial agreements between
the Auxiliary and University
• Fines
• If the prepayment creates an overpayment either a
credit memos is created or a refund is issued.
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How to handle contracts not requiring billing?
There are certain contracts and agreements where
payment is expected without an invoice issued.
For such cases, Univ AR will create courtesy invoices
which, upon determination of the department, can be
mailed or not.
A system invoice has to be created for the payment to be apply
against in order, and to record and track the receivable.
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What types of receivables should
CSUMB Univ AR not be billing for?
• Direct student receivables i.e. tuition, fees,
residential life, etc. This is processed by
Student Accounts Receivable (STAR).
Contact: Christine Frederick for processing this
type of activity
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Cont’d
• Transactions with other CSUs and the CO
A CPO (Cash Posting Order) is issued instead of an invoice. At
year-end a receivable is created between these entities and
CSUMB. More YE instructions to come.
• For non-contractual payments paid simultaneously
when the service and/or goods are received.
Payments can be by cash, check or credit card. For
example: box office tickets purchased at the ticket
window, or the selling of concessions and apparel 11at
events, etc.
BENEFITS
System will:
• Track invoice, payments and receivables
• Depts. can run and view their own reports (i.e.
customer activity and Aging reports, etc.)
Univ AR will:
• Process collections
• Remedy over payments & errors
• Setup recurring billing per contract
Including:
• Training support on AR/BI by ASM
• Compliance with CSU policies & procedures
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BENEFITS
TRAINING OPPORTUNITIES
IN 84D LAB (Mountain Hall):
May 17, Friday 9:00 a.m. - 10:30 p.m.
May 28, Tuesday 10:30 a.m. - noon
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Support and Information Required
• Approved Contracts
• Agreements, i.e. formal or informal, e.g. emails between Univ and Auxiliary
• Social security number if doing business with an individual e.g. library fines
– Required to be able to collect through the FTB Intercept Program
(intercept state refunds)
– Complete contact information for invoicing and collections purposes:
– Business Name
– Name Contract is Under
– Individual Full Name
– Mailing Address
– Phone number (work, home and cellular)
– Email address
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– Fax
Cont’d
• Description of what is being purchased including unit, price,
and quantity
• Complete chartstring to post revenue to (contra expense);
must be posted to the requestor’s Trust or Department ID
• Sales Orders
• Work Orders
• Purchase Orders
• Auxiliary has their Accounts Payable requirements that you
need to submit as well
SUBMIT support by attaching pdf to email or mailing (when
original signature is required)
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How are receivables recorded in the GL?
Prior to Centralized AR/BI
Some Departments have been doing their own billing,
mailing of invoices and recording revenue upon receipt
of payment (cash basis accounting), therefore not
recognizing receivables:
DEPOSIT:
Debit (+) - Cash
Credit (-) - Revenue (Contra-Expense)
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Centralized AR/BI
With ‘Centralized Billing’ there will be one invoice
issued to the customer by Univ AR Accountant (Depts.
can issue Sales Orders):
INVOICE – Unique number beginning with (6XXXXX):
Debit (+) - AR
Credit (-) - Revenue (Contra-Expense)
DEPOSIT thru CashNet against unique invoice number:
Debit (+) - Cash
Credit (-) - AR
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Centralized AR/BI
If Departments create their own invoice with an unique
invoice number and so does CFS AR/BI, then deposits
may not be applied to the correct system invoice
Problems this can cause:
• Potential for duplicate payments (over-payment)
• Disgruntle customers due to billing & collection
errors
• Incorrect reports
• Unreliable system data
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AR/BI PROCESS FLOW
& BUSINESS PROCESSES
FOR END USERS
by Jennifer Stone
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• Customer Upload
– Template for new customers
• Verify customer does not exist before requesting add
– Submit with or prior to Billing Upload
• Changes to Customers for Billing Upload
– Template for customer changes
– Submit with or prior to Billing Upload
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• Billing Upload
– Template for new activity only and not for
Credit Memos
– Instructions are included on the template
– Use all CAPS when completing template except
for conversation page field
– Each area wanting to be able to run an “Aging
Report” needs to have their own Collector Code
• Contact University AR to provide your area with a
Collector Code, if not already assigned
– Submit Wednesday by noon for Friday mailing
or the last Wednesday of the month in order to
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be processed for that month
• Changes to Billing for regenerating invoices
– Email Univ AR with billing changes
– If customer or address changes, correction will
be made and the invoice regenerated
• Marked ‘REVISED INVOICE’
– If amount changes, invoice will be voided and a
new invoice will be reissued.
• Marked ‘THIS INVOICE REPLACES INVOICE #’
– Only Univ AR can generate invoices and these
will be mailed to the customer
– Departments will not receive a copy of the
invoices since can view online or run an aging
report
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• Customer Payments
– Customer must write invoice # on check
– Include invoice stub with payment
– Customer mails to main Cashier – Mountain Hall,
Suite C
• Deposits
– Posted by main Cashier into CashNet
– System applies payment against invoice # for cash,
check, credit card and wires
• Over Payments
– Univ AR creates a CREDIT MEMO
• Depts. contacted to determine if:
– Apply CM to another invoice (outstanding balance)
– Refund through Accounts Payable
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Communication and uploads send to:
Accounts-receivable_non-student@csumb.edu
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Sample Template and
Resulting Invoices
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Submit Customer Upload and
Billing Upload, including changes
to customers if billing,
by Wednesday at noon to have
invoice created for mailing by
Friday of same week.
Recommend monthly billing
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Able to view activity for month
end, of the prior month,
approximately on the 10th of the
preceding month.
Sign up to be notified when the
month is closed to review reports.
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Year-End Close Deadlines
May 3, Friday – April billing
June 3, Monday – May billing
June 7, Friday – Last day for revisions of May billing
June 12, Wed – June billing
Review your contracts to make sure all FY12/13 billing
is processed no later than June 12, 2013
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COLLECTION PROCESS
• Collection Letter Series
• Two-step Collection Agency
Referrals
• FTB Intercept Program
– Capture state refunds
CSU Procedure-Revenue Management Program
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Action Item #17
WRITE-OFF PROCESS
• Under $50 per customer Departmental
decision
• $50 and over have to be requested by
Departments and approved by Director of
Accounting
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AR/BI TIMELINE
1. 4/29 (noon) – Departmental deposits to Main
Cashier
2. 4/30 (noon) - All non-student payments related to
Univ invoices need to be deposited into CashNet
3. 5/1 - Customer list validated by Depts.
4. 5/1-5/14 - Checks deposited to Uncleared
Collections (holding account) until AR/BI
conversion completed
5. 5/10 – Unpaid balances (receivables) as of 4/30
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moved into AR/BI
AR/BI TIMELINE Cont’d
5. 5/10 – Load new customers for May 2013
invoicing only
6. 5/15 - Customer list re-validated by Depts.
7. 5/1-5/14 – Apply payments in Uncleared
Collections to invoices in AR/BI
8. 5/14 and forward – New May invoices sent to
Customers. Payments posted directly to AR/BI
9. 5/17 & 5/28 – Open Lab for Department Staff
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REMINDERS TO YOUR CLIENTS
• University invoices will have a new look
• University invoices will be mailed by Univ AR directly
to customer
• Customer to mail check direct to University Main
Cashier (84C)
• Customer to reference invoice # on the check, include
payment stub (bottom of the invoice)
• Customer to contact Department directly for billing
inquiries (they will need to reference the invoice #) 34
REMINDERS TO YOU
Univ Accounts Receivable and ASM will continue to provide you
more help:
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•
•
•
•
Training as requested
User guides
Instructions
Procedures
Reminders by email and on ‘Staff & Faculty’
End-user business processes will be written formally and made
available on the Accounting Website under Accounts Receivable 35
Contact Persons and Resources
University Accounts Receivable Team:
• Mila Stoupnikova
x3745
• George White (Lead)
x4269
• Michele Zollna (Manager)
x4302
ASM Team for training:
• Marlene Sabanal
x3502
• Jennifer Stone (Lead)
x3301
• Susan McFarlane (Director) x3501
Accounts Receivable Website for procedures and training materials:
http://finance.csumb.edu/accounts-receivable
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What can we do for you to
make the transition smoother?
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