1. Accounts Receivable and Billing (ARB) Presenters: Debbie Talley dtalley@umich.edu Financial Operations Sponsored Programs Supervisor of Fund Requests and Collections Mary Byrkit marybyrk@umich.edu MAIS Financials CPU Application Manager for GL, AR and Billing

2. 2 Agenda ARB Benefits ARB Business Process ARB key concepts and terminology Walkthrough of month-end ARB reports  See handouts of report samples

3. 3 ARB Benefits Invoices and payments are posted daily to the General Ledger. Reduced billing time improves cash flow. Integration with other M-Pathways modules improves processing and reporting. Revenue is distributed directly to parent and sub Project/Grants based on their expenditures. Managers of sub Project/Grants can directly monitor their Account Receivable activity.

4. 4 ARB Business Process Invoice Sent – Full Payment Received General Ledger Land Invoice Dept Central AR Accounts Receivable Land General Ledger: Dept receives revenue (credit) Receivable increased (debit) Customer General Ledger: Cash increased (debit) Receivable decreased (credit) Submits Invoice Pays Invoice Books Payment Books Invoice Mails Invoice

5. 5 ARB Business Process Invoice Sent – No or Partial Payment Received General Ledger Land I nvoice Dept Central AR Accounts Receivable Land General Ledger: Dept receives revenue (credit) Receivable increased (debit) Customer Submits Invoice Books Invoice Mails Invoice Attempts to receive payment: Corresponds with Customer Works with Collection Agency Still possible to collect ? Yes No No/incomplete payment General Ledger: Determine appropriate ChartFields for write off General: ShortCode on Invoice charged (debit) Sponsored: Billing P/G initially charged (debit) Transferred to Department discretionary ChartFields Receivable decreased (credit) Write Off AR Item

6. 6 ARB Key Concepts & Terms AR/Billing Business Units  GNREC, GNPAY, GNMER, GNLNS Customers  General Receivables: Customer ID = GN12345 Invoices (Billing module)  Invoice = Bill Department invoices: 6-digit number (e.g. 123456) Items (Accounts Receivable module)  Item = Invoice Open item converted from legacy to ARB: 6-digit legacy item number

7. 7 ARB Reports Three new reports: SOA AR/BI Detail (new)  Provides invoice detail for the billing journals on the SOA. Statement of Receivables (enhanced)  Shows the open Accounts Receivable items and the transactions (e.g. payments) affecting the balance for those items. Aging Report (new)  Displays the number of days the invoice has been outstanding for open Accounts Receivable items.

8. 8 ARB Reports Navigation in FinODS  Go / Reports / AR Reports  SOA AR/BI Detail is also accessible the via GL Reports menu. The reports can be run by Fund/Department/Program or Project/Grant See separate handout with sample reports

9. 9 ARB Departmental Invoice Single Revenue Line A

10. 10 Statement of Activity (SOA) Single Fund/Department/Program Example The BI Journal ID Mask identifies billing journals in the ARB systems. A B

11. 11 AR/Billing Detail Report Single Fund/Department/Program Example A B The billing detail is displayed in the same order as on the SOA. The Journal Total matches the Amount of the journal line on the SOA.

12. 12 Statement of Receivables Single Fund/Department/Program Example 1. This report is run with an Account Receivables Business Unit. 1 2. Customer ID identifies who was billed. 2 3 3. Entry type = transaction type. Other values include Credit Memo and Write Off. Converted legacy items have an Entry Type of Invoice Conversion. (See report samples for additional examples). A

13. 13 Statement of Receivables Single Fund/Department/Program Example 4. Item ID = the Invoice ID on the AR/BI Detail report. 4 5 6 5. Subtotals for the report Fund/Department/Program (F/D/P) combination. 6. Totals for all F/D/P combinations (ShortCodes) credited on the original invoice. If a single ShortCode is credited, the total equals the subtotal for the report F/D/P. A

14. 14 Aging Report Single Fund/Department/Program Example 2. Total remaining amount of the open Accounts Receivable (AR) Item for all F/D/P combinations (ShortCodes) credited on the invoice. 3. The amount due for the report F/D/P combination on the open AR Item. 1. The As of Date and Due Date determine the age of the open AR Item. 1 2 3 A

15. 15 ARB Departmental Invoice Multiple Revenue Line C

16. 16 Statement of Receivables Multiple Fund/Dept/Program combinations example 1. Subtotals for the report Fund/Department/Program combination. 2. Totals for all Fund/Department/Program combinations (ShortCodes) credited on the original invoice. 1 2 C