non-student invoicing presented by john brandt, stacie hurley and karen diaz april 17 & 18, 2012...

NON-STUDENT INVOICING

Presented byJohn Brandt, Stacie Hurley and Karen Diaz

April 17 & 18, 20121

Non Student Accounts Receivable (NSAR) System

• Is the Unrestricted Accounting billing system

• Is used to bill external customers

• External customers are outside of the UNM campuses system

• External customers typically pay using checks, but sometimes use cash, credit cards, or wire payments (electronic funds transfer)

• UNM Hospital (UNMH), UNM Medical Group (UNMMG), and Sandoval Regional Medical Center (SRMC) are considered external customers

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UNMH, UNMMG and SRMC Transactions

There are ongoing transactions for goods and services between UNM Departments and UNMH/UNMMG/SRMC incurred on Unrestricted FundsThese include MOUs and salary agreements

1. Goods and services, provided by UNM Departments to UNMH/UNMMG/SRMC, are billed by HSC Unrestricted Accounting office using the NSAR system

2. Goods and services, provided by UNMH/UNMMG/SRMC to UNM Departments, are billed by UNMH/UNMMG/SRMC offices through FUPLOADs once per month, and given to HSC Unrestricted Accounting office for processing

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UNMH, UNMMG and SRMC Transactions

All billings to and from UNM Departments and UNMH/UNMMG/SRMC must go through the HSC Unrestricted Accounting office

To learn more about these processes, see our LEARN called “Financial Interactions – Hospital and UNM” at our website(presented 11/9/09)

http://hsc.unm.edu/financialservices/accounting/LEARN.shtml

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Important InformationDepartments may not invoice external entities outside these approved systems, to do so is to invite UNM Internal Audit to camp at their doorstep. When a department invoices outside approved systems, the accounts receivable are not posted to Banner General Ledger, cash application cannot be verified and the accounts are not properly aged or allowed for.

Memo regarding invoicing external entities

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NSAR System Activity

Number of Invoices Billed Through HSC NSAR System

FY09 FY10 FY11 3-Yr TotalJuly 215 315 286 816 August 318 277 387 982 September 361 318 432 1,111 October 337 367 414 1,118 November 292 362 596 1,250 December 277 374 407 1,058 January 384 409 504 1,297 February 366 412 501 1,279 March 384 414 510 1,308 April 397 402 547 1,346 May 411 450 589 1,450 June 512 530 649 1,691 Total 4,254 4,630 5,822 14,706

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Amount Billed through HSC NSAR System

FY09 FY10 FY11 3-Yr TotalJuly 3,125,073$ 3,760,253$ 3,218,844$ 10,104,170$ August 7,074,779 15,638,059 6,420,978 29,133,817 September 15,216,284 18,997,191 15,795,384 50,008,859 October 12,264,237 10,912,059 19,866,354 43,042,649 November 11,749,397 11,049,176 10,278,223 33,076,795 December 12,270,168 10,082,041 10,317,616 32,669,824 January 9,886,356 10,363,882 12,597,396 32,847,633 February 9,236,642 6,016,705 15,281,684 30,535,032 March 9,994,765 9,831,065 11,479,712 31,305,542 April 13,526,556 14,710,549 17,916,110 46,153,215 May 10,492,709 11,108,116 23,780,578 45,381,402 June 27,751,571 30,759,316 37,167,128 95,678,015 Total 142,588,537$ 153,228,410$ 184,120,007$ 479,936,954$

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Amount Collected through HSC NSAR System

FY09 FY10 FY11 3-Yr TotalJuly 5,832,013$ 2,503,705$ 3,156,097$ 11,491,816$ August 2,277,332 5,562,032 6,752,803 14,592,167 September 17,876,169 14,219,488 14,848,942 46,944,599 October 8,002,031 25,205,002 20,247,596 53,454,629 November 7,212,093 2,385,435 5,915,748 15,513,276 December 10,977,564 15,944,511 8,944,497 35,866,573 January 6,481,874 12,654,546 18,916,945 38,053,365 February 16,426,232 2,518,991 15,886,407 34,831,631 March 10,379,483 10,728,742 13,075,408 34,183,633 April 10,145,897 10,804,936 16,994,646 37,945,479 May 13,412,772 17,856,912 23,912,508 55,182,191 June 35,638,498 32,115,705 36,277,674 104,031,878 Total 144,661,958$ 152,500,005$ 184,929,274$ 482,091,236$

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Top 10 Advantages of Using the NSAR System

1. Did we mention that you are in compliance with UNM policy 2. We create collection letters, and do the allowance for

doubtful account calculations and create the bad debt reserve JVs on any uncollected invoices

3. We post the payments and process the money lists for you4. We print and mail the invoices, send copies to you along with

your aging reports5. We do almost all the work for you6. You can access a variety of information and generate reports7. You are in compliance with UNM policy8. You do not have to wait to receive a payment to recognize

your revenue when using NSAR9. You have more time to work on other tasks10. You do not pay for postage or copy paper

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NSAR Billing Cycle

2. Invoices are keyed in NSAR (backup docs sent to Unrestricted

Acctg offices

3. 16th and 1st day of month, invoices

are printed, scanned and mailed

4. Checks/payments are received and

logged into a check log

5. Payments are posted in NSAR; Money lists are

created and taken to UNM cashier to

be deposited

6. Aging reports are printed and analyzed

7. Collection letters & bad debt JVs are

processed as needed

1. Depts send to Unrestricted Acctg requests for detail

codes and customer IDs

7-StepLife Cycleof NSARInvoices

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NSAR Billing Cycle

Separation of Duties are important for internal controls and for compliance with various UNM Business policiesFor instance, HSC Campus Unrestricted Accounting:1. Accounting Supervisor creates detail codes and customer IDs2. HSC departments create the non-UNM external invoices3. HSC Unrestricted Acctg A/R Coordinator creates the invoices for

UNMH, UNMMG and SRMC4. HSC Unrestricted Acctg A/R Coord prints/scans/mails the invoices5. HSC Admin Assistant receive and log checks6. HSC Fiscal Svcs Tech posts checks in NSAR and creates money lists7. UNM cashiers process the deposits for money lists8. HSC Unrestricted Acctg personnel do daily, month-end, and year-

end reconciliations such as Live Check log vs. money lists, NSAR Ledger vs. General Ledger, and aging schedules

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NSAR Billing Cycle


Acctg offices







be deposited



processed as needed




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Before Requesting a New Customer, determine if this customer is paying

using Federal Funds

Decision Tree when Requesting New Customers

You must first determine:

Is the new customer paying using federal funds or

federal pass-through funds?

Yes

Contact Pre-award to determine if will bill thru C&G or NSAR

No

Contact Unrestricted Accounting to create a customer ID number

Provide customer name, physical billing address, contact person, contact

phone

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Requesting Customer IDs & Detail Codes

What is a Customer ID number?• A customer ID is created to set up an account for a customer• The number issued is used in Banner form TFADETL to bill the

customer, post payments and credits• A customer can be a company, organization, educational institution,

person, etc.• Billing information to give to Unrestricted Accounting – the name of

the customer, physical billing address, contact person, contact phone number

• Verify information is correct before request• HSC NSAR customer numbers start with “Y” and Main Campus

NSAR customer numbers start with “N”• An example of a Customer ID number to be used later is Y01571497

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Requesting Customer IDs & Detail CodesWhat is a Detail Code?• A detail code is needed to post an invoice into the NSAR system• A Core Office person creates the detail code in Banner• Each detail code is unique; it is used for a particular good or service, and

is created with a short description• The requestor provides the index where the revenue is to be posted• It is programmed to post a transaction to a debit and a credit in the

system• The debit posts as a receivable to the General Ledger (balance sheet)• The credit posts as a revenue to the Operating Ledger• Once the billing is posted in TFADETL, the Detail Code used creates the

accounting entry

• An example of a detail code to be used later is YD71:1. Debit - 099311 A224 3U00642. Credit - 099311 07Z0 3U0064

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TFADETC – Detail Code Control Form

Debit

Credit

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Requesting Customer IDs & Detail Codes

E-mail these contacts when requesting a new customer or new detail code:

HSC Unrestricted AccountingTo: John Brandt – [email protected]: Stacie Hurley – [email protected]

Main Unrestricted AccountingTo: Justin Walters – [email protected]: Karen Diaz – [email protected]

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mailto:[email protected]




NSAR Billing Cycle


Acctg offices







be deposited



processed as needed




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Keying Invoices into NSAR

• You must be trained on the NSAR system and have the BAR roles before you can use NSAR

• HSC Departments can key non-UNM external customers• Only HSC Unrestricted Accounting keys invoices billed to UNMH,

UNMMG and SRMC• All back up documents for invoices keyed by Departments, that

need to be mailed with invoices, should be sent to the Unrestricted Accounting offices no later than the end of the next invoice cycle

• For invoices to be billed to UNMH, UNMMG or SRMC, all backup documentation must be sent with the request to the HSC Unrestricted Accounting office before the invoice can be created 19


After invoice is keyed into TFADETL, saved, and the session closed: 1. The amount billed will post as revenue to the index after night train is

run2. The amount billed will post as a receivable to the fund after night train

is run3. The billing will post on the same transaction date as the invoice was

keyed, but only if the session was closed using TGACREV

The following Banner screen shots illustrate how a billing transaction is posted

Detail code YD71:4. Debit - 099311 A224 3U0064 $1,091.155. Credit - 099311 07Z0 3U0064 $1,091.15

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NSAR Billing Cycle2. Invoices are keyed in NSAR

(backup docs sent to Unrestricted Acctg offices

3. 16th and 1st day of month, invoices are

printed, scanned and mailed

4. Checks/payments are received and logged into

a check log



be deposited


7. Collection letters & bad debt JVs are processed as

needed

1. Depts send to Unrestricted

Acctg requests for detail codes

and customer IDs


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Invoices are printed, scanned and mailed

• Unrestricted Accounting offices handle the printing and mailing of invoices

• NSAR invoices are marked with Unrestricted Accounting offices’ return address for customers to mail payments

• HSC Invoices are printed twice per month, 16th and 1st

• Main Campus invoices are printed monthly on the 1st• During June, for year-end close, HSC invoices are printed 3

times per month - 11th, 21th, July 1st

• Invoices are scanned, then scans are e-mailed to Departments for their files

• Invoices and any backup are mailed to the customers• Copies of invoices and backup are kept in files at Unrestricted

Accounting offices 28






a check log



be deposited



needed



and customer IDs


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Checks/payments are received at Unrestricted Accounting offices

One employee receives payments:1. A witness assists with opening the mail, and observes the

handling of checks/cash2. Checks/cash received are logged into a password, protected

spreadsheet (check log)3. Checks are date-stamped and endorsed immediately

Checks and cash are put in a locked box and given to another employee, who posts payments in NSAR and creates the money list

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a check log



be deposited



needed



and customer IDs


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Post payments and create money lists

• A different employee posts the payments in the NSAR system the next working day

• Any payments by wire transmittal or credit card are also posted at this time

• Once payments are posted and balanced, this person creates the money list and takes it to UNM Cashier’s office that same day

• The UNM Cashier’s office is responsible for making the deposit at the bank

The payment will clear the Accounts Receivable amount for that particular billing as a credit and post the payment as cash in the assigned UNM Bank fund as a debitThe following Banner screen shots illustrate how the payment for the previous billing transaction is shown as posted and cleared In TFADETL (billing screen), payment shows as detail code YP01 for HSC and NP01 for Main Campus

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a check log



be deposited



needed



and customer IDs


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Aging reports are printed and analyzed

• First business day of each month, aging reports are run and printed

• Department aging reports are sent to Departments based on current billings

• Reports are analyzed based on age of invoices, invoice amounts, duplications, total balances, etc.

• Totals are balanced to the General Ledger

An example of an Unrestricted Aging Report is on the next slide

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Aging reports are printed and analyzed

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a check log



be deposited



needed



and customer IDs


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Collection Letters & Bad Debt JVs

Collection letters process• Unrestricted Accounting processes the collection letters for

all the Departments• Collections letters are generated and mailed for any invoices

aged over 60 daysThere can be up to 3 Collections letters:1. 1st letter – for an invoice that is more than 60 days old2. 2nd letter – for an invoice that is more than 90 days old3. 3rd and final letter - for an invoice 121 days or older

• It is up to the Departments to contact their customers for payments

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Collection Letters & Bad Debt JVs

Bad Debt JVs process• A bad debt reserve is calculated quarterly using the A/R Aging

Report based on a percentage of the outstanding days of the invoices (receivables) for each Department

• Any invoices aged over 120 days are reserved as a bad debt for 100% of the amount of the invoice

• Unrestricted Accounting does the Allowance for Doubtful Accounts analysis, and creates the Bad Debt Reserve JV

• The reserve amount for the total invoices can increase or decrease

• The JV amount can post as a debit or credit on a Department’s Operating Ledger to account code 98A0 – Bad Debt Expense 40

NSAR Training, Resources and Contacts

Training:• You must be trained on the NSAR system and have the BAR role

before you can use NSAR• The 2 BAR roles needed are:1. Department Accounts Receivable Query2. Department Accounts Receivable Processor• NSAR training is done by the Unrestricted Accounting Offices,

not EOD• NSAR training can be done one-on-one or for several persons at

a time• A Manual is given at the training• The 2 BAR roles will not be approved until training is completed 41


Resources:• NSAR Manual• NSAR Class• Non Student Accounts Receivable Website:http://hsc.unm.edu/financialservices/accounting/NSAR.shtml(grey box on left side of the HSC Unrestricted Accounting Website)

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http://hsc.unm.edu/financialservices/accounting/NSAR.shtml

http://hsc.unm.edu/financialservices/accounting/NSAR.shtml


Contacts:HSC Unrestricted Accounting:• Stacie Hurley - A/R Coordinator [email protected] • John Brandt - Unrestricted Accounting, Supv [email protected] • Laura Putz - Unrestricted Accounting, Mgr [email protected]

Main Unrestricted Accounting:• Karen Diaz - Fiscal Services Tech [email protected] • Justin Walters – Accountant III [email protected] • Doug Nelson – Unrestricted Accounting, Mgr [email protected]

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Banner Demonstration

In Banner, will demonstrate the following tasks:

• How to look up a customer using FOAIDEN• How to input invoice using TFADETL• How to post a credit using TFADETL• How to export data from TGIACCD

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Questions ??

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non-student invoicing presented by john brandt, stacie hurley and karen diaz april 17 & 18, 2012...

Documents

unm departments

unm policy

unm cashier

nsar system activity

unm internal audit

unm medical group unmmg

unrestricted funds

nsar billing cycle