Accounts Receivable (Non-Student) and Collections

By | June 21, 2015

An Accounts Receivable (A/R) application is required to collect for amounts owed to VU by all outside parties. These parties may owe monies include students and sponsors of grant and contract activities, employees, vendors internal departments and alumni.
1 Creating an Account
1.1 Demonstrate how to attach a receivable to an employee, student, internal department, vendor, alumni, or any other person or entity with a relationship with VU.
1.2 Demonstrate how you can net account receivable balances for internal departments, students, and employees against payables and compensation.
1.3 Demonstrate how to set up a customer account and describe the set up options, such as:
• customer type (e.g., employees, students, vendors, and other customers)
• billing preferences
• invoice formats
• addressing and “guarantor” features
• invoice delivery attributes (e.g., e-mail or e-forms for internal customers; and U.S. mail for external customers
• credit status
• revenue account
2 Posting Charges
Auxiliary has sent a bill to an employee. The employee has not paid so Auxiliary wishes to submit this accounts receivable to AR for collection.
2.1 Show how Auxiliary posts this charge to the employee’s account.
3 Sending Statements
3.1 Demonstrate the ability to generate multiple formats of invoices on a schedule and on demand, with tear-off remittance advice, OCR coding for scanning and lock-box activities also show how each department can modify the invoice format and the billing cycle to meet their individual needs
3.2 Demonstrate the ability to maintain memo data and to print user-defined messages on statements.
3.3 Demonstrate capability to perform partial billing, installment billing, or to override printing of statements based on user defined criteria and to add user defined service/late charges to customer’s accounts. Demonstrate flexibility in sending credit, debit, and zero balance statements.
4 Process Customer Information and Inquiry
4.1 Demonstrate the ability to display, on-line, a customer’s account name and address, collections status, overall payment history, credit rating, and units doing business with said customer including contact name and phone number, as well as other user defined information. In addition, demonstrate the ability to drill down from summary information into transaction details.
5 Receive and Post Payments
5.1 Show how partial payments are posted. What methodology is employed by your system to develop a hierarchy of creditors? That is, who gets paid first, second, and so on, if partial payments are made against the account? What are all of the options for programming and re-programming of this hierarchy?
5.2 Show how your system handles unidentified payments. What happens to them while account research is being conducted? How can Fisadmin or Business determine what is being held in the suspense account?
A customer processes a payment to Business for the first month as stated in the contract, makes a partial payment for the second month, makes no payments for the third or fourth month, and resumes payments as contracted for the fifth and sixth month.
5.3 Demonstrate the posting of the payment from the customer to the customer’s open account via cash, bank lock-box, credit card and EFT, respectively, for payments made in the first, second, fifth and sixth months.
5.4 Demonstrate the ability to manually apply a payment to multiple open invoices or automatically apply via LIFO or FIFO order or by matching the invoice number or dollar amount.
At VU, several auxiliary services (e.g., dining) post charges through accounts receivable. VU then records revenue to Auxiliary in advance of actually collecting cash from the customer.
5.5 Demonstrate the ability of the system to support this.
Auxiliary bills a customer for $12,000 and collects all of it in month 1. However, Auxiliary only wants to distribute $1,000 per month to Dept1.
5.6 Demonstrate how this is done.
6 Account Adjustments and Refunds
6.1 Demonstrate the system’s ability to use pre-defined reason codes for making adjustments (i.e. debit/credit memos, contract adjustment, returns, etc.) to the original invoice amounts.
6.2 Show how cash refunds can automatically be generated to the Accounts Payable system for payment in instances where duplicate payments or overpayments are received.
6.3 Show how refunds and credit balances can be applied to other charges for the same customer.
7 Credit and Collections
7.1 Demonstrate the ability of each operating unit using the billing and collection system to separately establish delinquency guidelines that will be maintained and managed in an automated fashion by the billing and collections system.
7.2 Show how VU can establish separate delinquency guidelines to the same account for different purposes. Show how this can be done prospectively and retroactively.
7.3 Show how identified delinquent accounts may be efficiently transferred to an extrenal collection agency including State Agencies to comply with the Set-off Debt Collection (SODC) or the Controller’s Debt Setoff (CDS) programs.
7.4 Demonstrate the ability to export the debt to the appropriate agency and import the payment from the agency.
7.5 Demonstrate the capability to put a customer in a “hold” status due to credit/collection issues and, following payment of said amounts, how the customer’s history is footnoted for past credit/collection issues.
7.6 Demonstrate how the system can automatically or manually assess interest charges, receivable management charges and other late payment fees, either on a fixed fee or percentage basis, based upon age, revenue type, submitting unit, dollar amount, etc. Show how these charges may be overridden on a charge by charge basis.
8 Reporting and Aging
VU’s EVP requires monthly-generated reports to maintain the integrity of A/R balances and to report to the governing body of VU.
8.1 Demonstrate the ability of the system to allow user-defined aging categories based upon revenue type.
8.2 Demonstrate the ability to maintain memo data at an invoice or customer level and be able to import a group of student names into one memo or create an attachment with the list of names.