(For questions about student bills or student account activity in Banner, contact Student Financial Services. For questions about sponsored agreement billing, contact Sponsored Project Administration).
Billing and recording accounts receivable (AR) for services provided to external, non-sponsored customers are processed in PeopleSoft by the department generating the billable activity, and supported by Financial Reporting & Accounting Services department within University Financial Services.
Requirements for Recording Billing and AR Activity
Any University department that has an arrangement with an external customer which results in the generation of income from providing services or sales or is for a reimbursement of costs incurred, must record amounts due as AR in the General Ledger:
- Accounts Receivable must be booked when services are rendered, sales are made, or costs are incurred
- Accounts Receivable must be specific to an individual customer
- Accounts Receivable must be supported by back-up documentation including an invoice or agreement showing amounts due, payment terms, customer, etc.
- Accounts Receivable must be promptly collected upon and aged
The Billing and AR for External, Non-Sponsored Customers User Guide (PDF) explains how to record billing and AR activities.
The Billing and AR Process
Here are the overall steps in managing a non-sponsored, external billing and AR activity:
- Set-up: Departments work with Financial Reporting & Accounting Services to discuss how to manage billing and AR activity, set up PeopleSoft, and receive training
- Billing: Departments enter bills, FRAS processes the invoices, and invoices are mailed to customers
- Payments: Customer payments are received via the AR lockbox (checks with payment coupon) or Treasury Services (cash or checks/EFTs without the payment coupon). Customer Transmittal offsets the open invoice on the customer's account.
- Customer Service/Collection: Departments answer customer inquiries, provide invoice copies or additional documentation, monitor items becoming delinquent, and contact customers to request payment for delinquent balances. FRAS mails monthly statements to customers with balances 60+ days outstanding.
- Bad Debt: FRAS transfers uncollected AR for which there is no payment arrangement back to the department's chartstring under the Bad Debt account. If payment for a reversed item is received within the same month, FRAS will unpost the reversal to offset the original invoice. If payment is received later, the department submits a Cash Deposit to post the revenue directly to the departmental chartstring.
Policies & UOPs
- Charge Code Request Form (Excel)
- Customer Cash Deposit Transmittal Form (Excel)
- Customer Maintenance Request (Excel)
- Distribution Code Request Form (Excel)
- Justification to Postpone the Processing of an AR Revenue Reversal (Excel) NEW
- Multiple Customer ID and Contacts Request (Excel)
- New Business Unit and/or Bill Type Request (Excel)
- New Customer ID # or Customer Information Update (Excel)