CFS AR/BI Module

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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

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Why is CFS AR/BI being implemented?

• The Chancellors 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

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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.

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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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Contd

• 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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Contd

• 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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Contd

• 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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Contd

• 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 at events, etc.

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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 900 a.m. - 1030 p.m.
• May 28, Tuesday 1030 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
• Fax

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Contd

• Description of what is being purchased including
  unit, price, and quantity
• Complete chartstring to post revenue to (contra
  expense) must be posted to the requestors 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 PROCESSESFOR END
USERSby 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 be
  processed for that month

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• 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 toAccounts-receiv
able_non-student_at_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 DeadlinesMay 3, Friday April
billingJune 3, Monday May billingJune 7,
Friday Last day for revisions of May
billingJune 12, Wed June billingReview 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 Action
  Item 17

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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

• 4/29 (noon) Departmental deposits to Main
  Cashier
• 4/30 (noon) - All non-student payments related to
  Univ invoices need to be deposited into CashNet
• 5/1 - Customer list validated by Depts.
• 5/1-5/14 - Checks deposited to Uncleared
  Collections (holding account) until AR/BI
  conversion completed
• 5/10 Unpaid balances (receivables) as of 4/30
  moved into AR/BI

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AR/BI TIMELINE Contd

• 5/10 Load new customers for May 2013 invoicing
  only
• 5/15 - Customer list re-validated by Depts.
• 5/1-5/14 Apply payments in Uncleared
  Collections to invoices in AR/BI
• 5/14 and forward New May invoices sent to
  Customers. Payments posted directly to AR/BI
• 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 )

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REMINDERS TO YOU

• Univ Accounts Receivable and ASM will continue to
  provide you more help
• 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

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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/acco
  unts-receivable

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What can we do for you to make the transition
smoother?