Accounts Receivable Handbook

Transcription

1 Accunts Receivable Handbk Versin: 1.5 Date f Apprval: vember 2006 Updated: April 2016 Reference Authrity: Chief Financial Officer

2 LaLas Accunts Receivable Handbk DOCUMENT CONTROL SHEET Cntact fr enquiries and prpsed changes If yu have any questins regarding this dcument cntact: Name: Mike Ryans Title: Manager: Financial Services Phne: (08) Lcated at: \\cedata\finance\administratin\ Web address f dcument: Revisin Histry Revisin Sectin Change Date Wh 1.0 All Initial versin. 15/11/06 Anthny Butler Respnsibility fr actin t be taken when payment variatin ccurs. 21/02/07 Christine Secmbe 1.2 1, 2, 3, 4, Refined General Principles. 13/07/07 Christine 7, 8 and 9 Minr changes in sectins. Secmbe Minr prcess changes made in Receipting f Mnies by Campus Central. Greater intercnnectivity between Credit Debtr and Raise Sales Invice. Reasnably significant changes in Recver Aged Debt (i.e. escalatin prcess, timing and respnsibility). 1.3 All sectins General update 28/11/14 Peter Prest except Minr changes in mst sectins. 10 & 13 Update fr ECR replacing H&L system Update fr ALMA replacing Vyager system Change requirement fr authrisatin f FS19 t Cst Centre Manager. 13/01/16 Peter Prest, Chief Financial New sectin t include Student Officer 8 Debtr prcess. 11 Receipting f Mnies by Dcument Services 1.5 All Changed Financial Supprt Services t Financial Services 01/04/16 Peter Prest, Chief Financial 6 & 7 Clarified requirement fr authrisatin f FS21 and FS20 t Cst Centre Manager. Officer Mved all prcess maps t end as an Attachments. Revisin f Sectin 9 Receipting f Mnies by Campus Central Infrmatin relating t sanctins regime.

3 LaLas Accunts Receivable Handbk Cntents 1. Intrductin General Principles Debt is Incurred t the University Raise Sales Invice Trade Debtr Takes Actin Credit Debtr Recver Aged Debt Student Debtrs Receipting f Mnies by Campus Central Receipting f Mnies by Finance Unit Receipting f Mnies by Dcument Services Refund Debtr Clear Bank Statements Library Accunts Receivable Prcess Attachment 1: High Level Prcess Flw Attachment 2: Raise Sales Invice Prcess Attachment 3: Trade Debtr Takes Actin Prcess Attachment 4: Credit Debtr Prcess Attachment 5: Recver Aged Debt Prcess Attachment 6: Student Debtr Prcess Attachment 7: Receipting f Mnies by Finance Unit Prcess Attachment 8: Clear Bank Statement Prcess... 49

4 Intrductin 1. Intrductin 1.1 Descriptin Accunts Receivable is ne f a series f accunting transactins dealing with the billing f custmers wh we mney t the University fr gds and services that have been prvided t the custmer r student. This is typically dne by raising an invice in a financial system and sending it t the custmer r student. This Handbk fcuses n the prcess t be fllwed fr trade debtrs, student debtrs, internal staff debtrs, and debtrs specific t Dcument Services and the Library. The prcess begins when a sales invice is raised in the relevant financial system and sent t the debtr. The debtr either pays the invice requests special payment arrangements, r querying the invice. If the debtr des nt pay the debt by the due date, the University will attempt t recver the debt. When a trade debtr makes a payment, the remittance advice slip may be received and the payment is receipted int Finance One. When the payment appears n the bank statement, it is receipted int Finance One via a bank jurnal, therefre clsing ff the debt. Internal staff debtrs re-pay the University at Campus Central r via Finance Unit. 1.2 High Level Prcess Flw Overview f the Prcess see Attachment Debt is Incurred t the University The Accunts Receivable prcess is always triggered when a party incurs a debt t the University. Based n whether the party is external r internal will influence hw the prcess shuld be fllwed. It is preferable fr debtrs t be inviced befre receipt f funds, where pssible, and that the debt is paid in full within the standard payment terms stated in General Principles Raise Sales Invice Fr trade debtrs, an invice request is cmpleted by the Requesting Area and prvided electrnically t Finance Unit wh will raise a sales invice in Finance One. Finance Unit sends the riginal t the debtr directly unless the Requesting Area request that the invice is t be sent by them alng with supprting dcumentatin Debtr Takes Actin The debtr remits payment after receiving a sales invice. They may pay the debt in full, request special payment arrangements, r questin the accuracy f the invice. Sme payments are remitted frm funding bdies under Funding Agreements withut UniSA first raising sales invices. Last Saved: 1 April 2016 Page 3 f 50

5 Intrductin Credit Debtr If the debtr has been incrrectly inviced, the riginal invice is cancelled and a new invice is issued t the debtr Recver Aged Debt Debts that have nt been paid by the due date are identified by the Finance Unit and reprted t Divisin Accuntants n a mnthly basis. Unless therwise instructed, Finance Unit cntact debtr t request urgent payment. The actin taken escalates as the age f the debt increases. In certain instances, a debt cllectin agency is engaged. The debt may be written ff at the discretin f management with the cst being charged t the cst centre that the revenue was raised against. The debtr is then inactivated in Finance One. This prcess des nt apply t student debtrs. Student Debts are managed by SAS Finance until they becme inactive students Student Debtrs Students wh have nt paid their tuitin fees and wh have nt re-enrlled in the next study perid are identified by SAS Finance and referred t Finance Unit fr debt cllectin actin Receipting f Mnies by Campus Central Campus Central receives mnies frm students and staff and prvides a receipt frm the Enterprise Cash Receipting (ECR) systemdule f Finance One. Campus Central regularly use the ECR system t recncile receipts issued t payments received Receipting f Mnies by Finance Unit The prcess is ften triggered by the receipt f a Remittance Advice slip r the apprpriate frm. If Finance One des nt cntain an assciated invice, an invice will be raised accrding t business rules utlined in Sectin 4.4. The payment is then receipted int Finance One and any cheques are banked daily Receipting f Mnies by Dcument Services Payments are checked against the invice, marked as paid in Qute and Print and a receipt is issued t the debtr if the payment has been made by cash. If the payment was made by EFT r cheque, Dcument Services infrms the Finance Unit. If the payment is in cash, the mney is banked and an FS31 frm is cmpleted and sent t the Finance Unit with receipts. Each mnth data is imprted int Finance One frm Qute and Print. Last Saved: 1 April 2016 Page 4 f 50

6 Intrductin Refund Debtr The custmer r staff member identifies that they have paid mney t the University in errr. It is a general business principle that mnies are t be refunded t the surce credit card r bank accunt f the riginal payment. Exceptins t this must be apprved by Manager: Financial Services. If riginal payment was paid at Campus Central, see Sectin 9.7. Fr ther payments, nce the University has cnfirmed that payment was received in errr, the apprpriate paperwrk is prepared requesting the Finance Unit t prvide a financial refund Clear Bank Statements The Finance Unit accesses the bank statement nline each day and prepares a bank jurnal which is prcessed int Finance One. Transactins that have nt been verified r identified are jurnaled t the clearing accunt. Once sufficient infrmatin is btained, they are prcessed t the crrect accunt in Finance One Library Accunts Receivable Prcess Althugh Library cllects its wn debts, the prcess fllwed has many similarities with the standard Accunts Receivable Prcess. When Library items are verdue an invice is ed frm the ALMA (library system) t the student. The student is placed in bad financial standing in Medici and is nt allwed t brrw further items, access exam results r receive transcripts. The student may pay their debt r ldge a claim that the item was returned. If the claim return is accepted the fee will be waived r if rejected the patrn is t pay all utstanding fees. Last Saved: 1 April 2016 Page 5 f 50

7 General Principles 2. General Principles 1. Invices must be raised in the relevant financial system (i.e. Finance One, Qute and Print, ALMA r Medici) when the University has fulfilled its cntractual bligatins and the debt has becme due and legally payable: a. Multiple items being billed t the same debtr shuld be separately listed n the same invice b. Every mnth, invices that are raised in the Qute and Print system are t be interfaced t Finance One. 2. Advance billing, ahead f the prvisin f the cntracted gds r services, is permissible in special circumstances apprved by the Chief Financial Officer. 3. Payment terms fr invices are: a. Australian addresses - 14 days frm the date f the invice. b. n-australian addresses - 30 days frm the date f the invice. Requests t vary the standard terms f payment must be submitted t the Chief Financial Officer thrugh the Manager: Financial Services. 4. The preferred methd f payment is by Electrnic Funds Transfer (EFT) directly int the University s bank accunt. The accunt details are printed n each invice. 5. Other payment ptins are by credit card r cheque t the Finance Unit. The credit card instructin and the address are printed n each invice. 6. Invice payments fr trade debtrs must nt be handled by Campus Central. 7. All invices greater than $75 (excluding GST) must cmply with the Gds and Services Tax (GST) legislatin and shw the amunt f GST (if applicable) included in the price. 8. Funds are credited t the specific cst centre at the time the invice is created and debited frm that same cst centre shuld the debt prve uncllectible and be written ff (refer t Recver Aged Debt). 9. Mnies cllected at the Finance Unit must be banked int a University bank accunt within ne business day f being received using University receipt statinery, thus maximising the University s cash flw and minimising any risk t staff r the mnies cllected. 10. Sub-receipting is acceptable nly in areas where Chief Financial Officer has apprved their use. 11. Any cheque payments received by Schls must be frwarded t the Finance Unit within 24 hurs with the apprpriate frms. 12. Wherever practicable, there must be a segregatin f duties between the staff perfrming the invicing functin and the staff perfrming the receipting and banking functin. 13. Finance is required t ensure the University des nt receive payment frm a sanctins regime. Please refer t the Research and Innvatin Services shuld yu have any queries relating t the Autnmus Sanctins Act. 14. All invicing and revenue cllectin activities cannt cntra a sales invice against an Accunts Payable invice. Last Saved: 1 April 2016 Page 6 f 50

8 Debt is Incurred t the University 3. Debt is Incurred t the University The Accunts Receivable prcess is always triggered when a party incurs a debt t the University. Based n whether the party is external r internal will influence hw the prcess shuld be fllwed. It is preferable fr debtrs t be inviced befre receipt f funds, where pssible, and that the debt is paid in full within the standard payment terms stated in General Principles. Trade Debtr It is preferable t invice trade debtrs when the debt becmes due and payable regardless f whether the party is accessing research and cnsultancy services, Dcument Services r the Library. Refer t Raise Sales Invice if the debtr is t be inviced. Otherwise, refer t Trade Debtr Takes Actin. Internal Staff Debtr Refer t Trade Debtr Takes Actin. Last Saved: 1 April 2016 Page 7 f 50

9 Raise Sales Invice 4. Raise Sales Invice 4.1 Descriptin Fr trade debtrs, an invice request is cmpleted by the Requesting Area and prvided electrnically t Finance Unit wh will raise a sales invice in Finance One. Finance Unit sends the riginal t the debtr directly unless the Requesting Area request that the invice is t be sent by them alng with supprting dcumentatin. 4.2 Prcess Flw See Attachment Rles Requesting Area An area f the University that has prvided a prduct r service, identifies the debt btains infrmatin abut the debtr, cmpletes the Request fr an Invice (FS19) Frm and s it t Financial Services. Financial Services Checks the invice request against requirements, creates r updates the debtr in the financial system, and raises and issues the invice directly t the debtr r the Requesting Area if required. Dcument Services Carries ut the whle prcess fr Dcument Services debtrs. 4.4 Business Rules Invices must nly be raised in the financial system when the University has fulfilled its cntractual bligatins and the debt has becme due and legally payable. The fllwing exceptins apply: Advance billing, ahead f the prvisin f the cntracted gds r services, is permissible in special circumstances apprved by Chief Financial Officer The invice is t be delivered with the related gds r services. Invices will nt be raised in Finance One fr items that: are less than $50 unless apprved by Manager: Financial Services (r delegate) and/r can be inviced thrugh Medici, ALMA r Qute and Print. Refer t Sectin 4.6 fr Exceptins t the raising f invices. Last Saved: 1 April 2016 Page 8 f 50

10 Raise Sales Invice All incmplete invice requests must be returned t the Requesting Area fr cmpletin. Payment terms fr invices are: 14 days frm the date f the invice fr Australian addresses 30 days frm the date f the invice fr nn-australian addresses. Payment terms shuld be clearly stated n the invice if they differ frm the standard terms. Where pssible, invices are t be issued t the debtr electrnically. All invices raised in a financial system must be sent t the debtr. PQS billing milestne reminders shuld be acted n apprpriately by BDM s, ensuring that the debt is legally payable. Finance is required t ensure the University des nt receive payment frm a sanctins regime. Please refer t the Research and Innvatin Services shuld yu have any queries relating t the Autnmus Sanctins Act. The Finance Unit is t maintain all Finance One debtr recrds. Invices Raised in Finance One Only when an invice request has been cnfirmed as accurate and legally cllectable, a Request fr an Invice (FS19) Frm be ed t Financial Services by (accuntsreceivable@unisa.edu.au). The must be sent by, r as a minimum cpied t, the relevant Cst Centre Manager. Financial Services are t raise invices in Finance One within tw business days f receiving the invice request. 4.5 Frms, Dcuments and Reprts Request Fr An Invice (FS19) Frm is prduced frm the Finance One system. 4.6 Exceptins 1. An invice des nt need t be raised in Finance One fr: Payments fr ne-ff cnferences r wrkshps. 2. Invices will nt be raised in Finance One fr items that: Are less than $50 unless apprved by Manager: Financial Services (r delegate) and/r Can be inviced thrugh Medici, ALMA r Qute and Print. Last Saved: 1 April 2016 Page 9 f 50

11 Raise Sales Invice 4.7 Prcess Request fr an Invice (FS19) Frm Request Invice (Requesting Area) 1. Identify the amunt wing t the University. te: Befre prceeding, ensure that the University has fulfilled its cntractual bligatins, r that there is a legitimate reasn fr raising the invice befre the debt is legally payable. 2. Obtain current and accurate infrmatin abut the debt and the debtr and cmplete the Request fr an Invice (FS19) Frm electrnically. te: The frm must cntain cmplete infrmatin abut the debt and debtr. The debtr infrmatin will be cmpared t the infrmatin held in Finance One t identify whether the debtr recrd shuld be changed. 3. the Request fr an Invice (FS19) Frm t accuntsreceivable@unisa.edu.au ensuring that a cpy is sent t the Cst Centre Manager. te: Make sure that the frm is sent t accuntsreceivable@unisa.edu.au nce nly. Prcess Invice (Financial Services) te: Financial Services is t raise the required invices within tw business days f receiving the cmplete invice request frm. 4. Check that the frm meets all requirements befre prceeding: All mandatry fields are filled in crrectly. Apprpriate narratin is included. Dllar amunts are accurate (particularly GST calculatins). Freign currency has been indicated apprpriately. The frm has been cpied t the relevant Cst Centre Manager. te: If the frm desn t meet requirements, return it t the Requesting Area and ask that it be cmpleted and returned. 5. Attempt t lcate the debtr in Finance One by searching fr ABN/ACN, rganisatin name and address. If the debtr is fund, mve t Step 7. te: If there is a discrepancy between the debtr recrd fund and the infrmatin prvided by the Requesting Area, the Finance Unit is t clarify the differences with the Requesting Area befre making any changes t the debtr s recrd. Last Saved: 1 April 2016 Page 10 f 50

12 Raise Sales Invice 6. If the debtr cannt be fund in Finance One: Cnfirm ABN/entity name details fr cmpanies using the nline ABN Register ( Create the debtr in Finance One using the infrmatin prvided n the FS19: Cre debtr details including ABN/ACN, rganisatin name, addresses, phne number, fax number, and address Ensure that the name created fr the accunt matches the Entity name r a trading name listed n the ABN Register Recrd ntes. 7. Raise the invice in Finance One within tw business days f receiving the FS19, ensuring that: The invice matches the detail specified n the frm. Freign currency cnversin is used as required. Payment terms are clearly stated if they are different frm nrmal terms and that they have been apprved by Chief Financial Officer. 8. All invices must meet the fllwing requirements: Special payment terms specified clearly. Detailed narratin. Crrect GST amunt. Send the Invice t the Debtr 9. Wh is t send the invice t the debtr? Financial Services: send the invice direct t the debtr (preferably by ). Requesting Area: send the invice t the Debtr by . te: It is preferable fr the Finance Unit t send the invice directly t the debtr except in cases where the requesting area is bligated t deliver the riginal invice directly t the debtr alng with the related prduct r service. 10. If the Requesting Area is t send the invice, it shuld be sent with the supprting dcumentatin. 4.8 Next Step w that the invice has been issued t the debtr, the debtr can act n the debt. Refer t Trade Debtr Takes Actin. Last Saved: 1 April 2016 Page 11 f 50

13 Trade Debtr Takes Actin 5. Trade Debtr Takes Actin 5.1 Descriptin The debtr remits payment after receiving a sales invice. They may pay the debt in full, request special payment arrangements, r questin the accuracy f the invice. 5.2 Prcess Flw See Attachment Rles Debtr Either pays the invice, raises prblems abut it, r requests special arrangements. Business Develpment Manager r Cst Centre Manager Negtiate and apprve special payment arrangements (in cnsultatin with the Finance Unit). Finance Unit Finalise payment arrangements, nte arrangements n debtr file, and determine apprpriate reslutin fr invice issues. 5.4 Business Rules General Debtrs must be encuraged t qute the invice number n the remittance when paying by EFT. Special Payment Arrangements Are t be arranged either f the fllwing ways: The area f the University that has the relatinship with the debtr The Finance Unit in cnjunctin with the area f the University that has the relatinship with the debtr. All arrangements must be authrised by the Chief Operating Officer, Chief Financial Officer r Manager: Financial Services. 5.5 Frms, Dcuments and Reprts Remittance Advice Slip Debtr sends this t accunts receivable t facilitate identificatin f payments made t the University Bank Accunt. Last Saved: 1 April 2016 Page 12 f 50

14 Trade Debtr Takes Actin 5.6 Exceptins t applicable. 5.7 Prcess The prcess t be fllwed will depend n the actin taken by the debtr, which culd be: Pay ne r mre invices. Raise issues abut an invice. Request special payment arrangements. Refer t the heading belw which aligns with yur situatin. Debtr Pays Invice via EFT Payment can be made t: Finance Unit: refer t Receipting f Mnies by Finance Unit. Library: refer t Library Accunts Receivable Prcess. Dcument Services: refer t Receipting f Mnies by Dcument Services. Debtr Raises Prblem with Invice When the debtr infrms the University f ne r mre prblems, btain infrmatin abut the prblem alng with the invice number and infrm the debtr the prblems will be investigated and reslved within three business days. Type f Issue Reslutin Refer t Invice amunt t high/lw Incrrect GST cmpnent Incrrect details (eg narratin, due date) Debtr details incrrect Incrrect debtr Purchase rder number required Invice raised in errr Credit debtr and reissue invice after cnsultatin with the Requesting Area Raise a credit nte fr the cmplete invice amunt after cnsultatin with the Requesting Area Credit Debtr Raise Sales Invice Credit Debtr Last Saved: 1 April 2016 Page 13 f 50

15 Trade Debtr Takes Actin Debtr Requests Special Payment Arrangements te: The arrangements must cmply with the Business Rules (abve). In cnsultatin with the Cst Centre Manager r delegate, the Finance Unit negtiates a repayment schedule with the debtr with the fllwing characteristics: Duratin f repayment shuld nt exceed six mnths. Payment schedule shuld include: Date f each instalment Dllar value f each instalment Methd f payment (preferably EFT) Penalties fr nn-payment shuld be negtiated. Apprpriate recrds will be maintained by the Finance Unit fr each debtr repaying debts by instalment. The recrds will include: Amunt f riginal debt Instalment amunts Dates the instalments were paid t the University The pay-ut date Prf f acceptance f payment schedule by custmer (e.g. cnfirmatin). Any variatin t these characteristics shuld be apprved by the Manager: Financial Services. 5.8 Next Step The next step t be taken depends n the cnditins and required actins that are described in the table abve. Last Saved: 1 April 2016 Page 14 f 50

16 Credit Debtr 6. Credit Debtr 6.1 Descriptin If the debtr has been incrrectly inviced, the riginal invice is cancelled and a new invice is issued t the debtr. 6.2 Prcess Flw See Attachment Rles Requesting Area Cmplete a Request fr a Credit/Adjustment te. Cst Centre Manager r Business Develpment Manager Prvide infrmatin t the Requester. Prcessing Area (Finance Unit, Dcument Services) Raise the credit nte in the finance system and issue it t the debtr r the requester. Dcument Services Carry ut the cmplete prcess fr Dcument Services credit ntes. 6.4 Business Rules Befre a debtr is credited, a Request fr Credit/Adjustment te (FS21) frm must be satisfactrily cmpleted and sent t the Finance Unit electrnically. The must be sent by, r as a minimum cpied t, the relevant Cst Centre Manager and the reasn fr credit clearly stated. A credit nte must be sent t the debtr if there is an errr with the riginal invice. All credit ntes must be raised in the same currency as the riginal invice. It is preferable t raise credit ntes fr the full riginal invice amunt and issue a new invice fr the crrect amunt. All credit ntes must be raised against the same cst centre that the invice was raised t. A credit nte cannt be raised fr a debt that has been written ff. It is preferable t issue credit ntes electrnically t debtrs. Tw peple must be invlved in the request and issuing f a Request fr Credit/Adjustment te (FS21) frm. Last Saved: 1 April 2016 Page 15 f 50

17 Credit Debtr 6.5 Frms, Dcuments and Reprts Request fr a Credit/Adjustment te (FS21) Frm Finance One Credit/Adjustment Prduced frm the Finance One system. 6.6 Exceptins t applicable. 6.7 Prcess Request Credit te (Requesting Area) 1. Identify exactly what the adjustment needs t be. 2. Fill in the FS21 frm t include cmplete infrmatin abut the riginal invice and the reasn fr the credit nte. te: A valid reasn fr a credit nte wuld be: Invice XYZ issued in errr rather than Credit fr Invice XYZ. 3. The FS21 must be ed t accuntsreceivable@unisa.edu.au, by, r as a minimum cpied t, the relevant Cst Centre Manager which signifies apprval. Create Credit te in Finance One (Financial Services) 4. Check that the frm meets all requirements. If it desn t meet requirements, return it immediately t the Requesting Area requesting crrectins. When the frm is received, ensure that it meets requirements befre prceeding. 5. Raise a credit nte in Finance One ensuring that: All mandatry fields are filled in crrectly The reasn fr the credit nte is clearly specified in the narratin The invice number being credited is clearly stated Dllar amunts are accurate The currency f the credit nte is the same as that which was used in the riginal invice The frm has been apprpriately authrised. te: If the frm desn t meet requirements, return it t the Requesting Area and ask that it be cmpleted and returned. Last Saved: 1 April 2016 Page 16 f 50

18 Credit Debtr Send Credit te t the Debtr 6. If the Requesting Area is t send the credit nte t the debtr, the Prcessing Area is t first send the credit nte t the Requesting Area, and the Requesting Area must: Attach required dcumentatin Send the credit nte and dcumentatin t the debtr. 7. If the Prcessing Area is t send the credit nte t the debtr, the fllwing need t be included: 6.8 Next Step Attach required dcumentatin Send credit nte and dcumentatin t the debtr. If a new invice is required t replace the previus ne, refer t Raise Sales Invice. Otherwise, n further actin is required in relatin t the debt. Last Saved: 1 April 2016 Page 17 f 50

19 Recver Aged Debt 7. Recver Aged Debt 7.1 Descriptin Debts that have nt been paid by the due date are identified by the Finance Unit and reprted t Divisin Accuntants n a mnthly basis. Unless therwise instructed, Finance Unit cntact debtr t request urgent payment. The actin taken escalates as the age f the debt increases. In certain instances, a debt cllectin agency is engaged. The debt may be written ff at the discretin f management with the cst being charged t the cst centre that the revenue was raised against. The debtr is then inactivated in Finance One. This prcess des nt apply t student debtrs. Student Debts are managed by SAS Finance until they becme inactive students. See Student Debtrs. 7.2 Prcess Flw See Attachment Rles Finance Unit Generate and disseminate aged debtr reprts. Divisin Accuntant and Business Develpment Manager Mnitr aged debts, assess aged debtrs and take actin t recver debts. Finance Unit Accuntant Make prvisin fr dubtful debts in Finance One fr quarterly and annual reprting purpses. Dcument Services Recver aged debts specific t Dcument Services. Library Staff Recver aged debts specific t the Library. Last Saved: 1 April 2016 Page 18 f 50

20 Recver Aged Debt 7.4 Business Rules Escalatin Aged debtr reprts must be generated as a pivt table reprt by the Finance Unit and disseminated t Divisin Accuntants (full reprt) and BDM s (debts greater than 60 days nly) n a mnthly basis. The fllwing debt recvery escalatin prcess must be adhered t acrss the University: Actin Respnsibility Pre-cnditins Issue reminder letter Finance Unit Debt is past the payment due date Issue verdue letter Finance Unit Debt has been utstanding fr 60 days r mre Request payment frm debtr and infrm Finance Unit f actin taken Request payment frm debtr and nte n Finance One Issue Final tice letter Infrm debtr that debt cllectin agency will be engaged Engage debt cllectr Write-ff debt Divisin/Institute/ Unit Finance Unit in cnsultatin with Divisin/Institute/ Unit Finance Unit in cnsultatin with Divisin/Institute/ Unit Finance Unit in cnsultatin with Divisin/Institute/ Unit Finance Unit in cnsultatin with Divisin/Institute/ Unit Finance Unit in cnsultatin with Divisin/Institute/ Unit The debt is between 61 and 67 days ld The Finance Unit has been cntacted t understand the actin taken t date Debt has been utstanding fr between 68 days and 90 days Check actin taken t date as reprted by Divisin/Institute/Unit Cnsideratin shuld be given t delaying payments when the University has utstanding debt t the rganisatin in questin Debt has been utstanding fr between 90 and 100 days Debt has been utstanding fr mre than 100 days Debtr has been infrmed that a debt cllectin agency will be engaged and still refuses t pay All ther avenues have been exhausted r the debt is nt cst effective t warrant further actin Debtrs must be managed in accrdance with the payment terms in place with them. Last Saved: 1 April 2016 Page 19 f 50

21 Recver Aged Debt Fr all invices greater than $100,000 Finance Unit will make a curtesy telephne call t the Debtr 14 days after the invice date t cnfirm that the debtr has received the invice and that the details f the invice are crrect. The Finance Unit must send reminder letters at 30 days verdue and 60 days verdue t aged debtrs independently f the area cntrlling the cst centre (after referring t the debtr ntes in Finance One). When a debt is mre than 67 days verdue, Finance Unit will cnsult with Cst Centre Managers t ensure that effective debt recvery prcesses are in place. When a debt is mre than 90 days verdue: The Finance Unit will cnsult with Cst Centre Managers and Business Develpment Managers t ensure that effective debt recvery prcesses are in place At the end f the year amunts greater than $100 will have a prvisin fr dubtful debts raised against the relevant cst centre. The Finance Unit must be infrmed f any liaisn r cntact between the University and the debtr. Finance One debtr ntes must be updated t reflect actin taken with, and by, the debtr. Payment Arrangements Alteratins t payment arrangements must be apprved by Chief Financial Officer. Debt Write-ff Debts must nt be recmmended fr write-ff until all apprpriate avenues f debt recvery have been exhausted. The Vice Chancellr s Authrisatins must be adhered t in relatin t deferral r waiver f fees/charges and the write-ff f bad debts. Only when all apprpriate avenues f debt recvery have been exhausted, a Request t Write-Off Outstanding Debt (FS20) must be signed by the relevant staff member in accrdance with the Vice Chancellr s Authrisatins and sent t Financial Services by (accuntsreceivable@unisa.edu.au) which must be cpied t the relevant Cst Centre Manager. When a debt is written ff: The amunt written ff and any assciated csts must be charged t the cst centre that the revenue was raised against The debtr must be inactivated and the reasn nted n Finance One, and the BDM netwrk infrmed. Prvisin must be made fr dubtful debts quarterly. Last Saved: 1 April 2016 Page 20 f 50

22 Recver Aged Debt 7.5 Frms, Dcuments and Reprts Request t Write-Off Outstanding Debt (FS20) frm R180/R181s Aged Debtrs by Invice/Debtr Finance One reprts can be run frm Finance One at any time: R180s: Lists utstanding debtrs (cst centre) R180d: Lists utstanding invices (cst centre then debtr) R180d_02: Lists utstanding amunts (rg cde then cst centre then debtr) R181s: Lists utstanding amunts (cst centre - n debtr detail). Finance One Credit/Adjustment Prduced frm the Finance One system. Pivt Table A pivt table f Outstanding Debtrs is generated by Finance Services fllwing the clse f each mnth and frwarded t the Divisin Accuntants. te: The infrmatin in the pivt table is current t the last business day f the previus mnth. Dcument Templates The fllwing templates are t be used by Financial Services staff: Reminder letter Payment request Overdue letter Final ntice letter Debt cllectin letter. 7.6 Exceptins Student Debtrs are managed by SAS Finance until they becme inactive, when the Finance Unit assume cntrl - see Student Debtrs. 7.7 Prcess Prepare Reprts (Finance Unit) 1. Generate, save and frward the mnthly pivt table t Accuntants and Business Develpment Managers accrding t the fllwing table. Last Saved: 1 April 2016 Page 21 f 50

23 Recver Aged Debt User Reprts Timing Divisin/Institute/Unit Accuntants Business Develpment Managers Cmplete pivt table shwing all utstanding debts fr the Area Pivt table shwing all debts utstanding mre than 90 days First week f the mnth First week f the mnth 2. Review and assess the debts and determine apprpriate actin t be taken in cnsultatin with the invice requesting area and Financial Services. te: Check the ntes n the debtr file befre any actin is taken. 3. Take apprpriate actin t recver the debts. 4. te any actins taken n the pivt table and return the pivt table t the Finance Unit. Assess Debts (Divisin/Institute/Unit Accuntant) 5. Review and assess the debts and, in assciatin with the BDM and invice requesting area, determine apprpriate actin t be taken. 6. Advise Finance Unit f any actins taken. Determine Curse f Actin (Divisin/Institute/Unit) 7. In cnsultatin with Finance Unit, decide if the debt shuld be recvered (refer t Recver Debt belw) r written-ff (refer t the AR Prcess fr Writing ff Bad Debt listed in the Frms, Dcuments and Reprts sectin). Questin Is there a strategic relatinship between the University and the debtr? Des the debt warrant the use f a debt cllectr? Des the University currently we mney t the rganisatin with the aged debt? Outcme The Business Develpment Manager is t handle these situatins in cnsultatin with the Finance Unit. Finance Unit engage a debt cllectr in cnsultatin with BDM. Refer t Recver Debt (belw). When an rganisatin has ne r mre aged debts t the University, the University must nt pay debts that it has t that rganisatin. Refer t Delaying Payments (belw). Recver Debt (Finance Unit in Cnsultatin with Divisin/Institute/Unit) 8. The Finance Unit refers t the ntes n the Finance One debtr file befre taking further actin. This will minimise the chance f inapprpriate actin being taken. 9. Fllw the Debt Recvery Escalatin Prcess defined in Sectin 7.4. te: The Finance Unit must issue reminder letters t debtrs independently frm ther areas f the University. Last Saved: 1 April 2016 Page 22 f 50

24 Recver Aged Debt Reminder letter (30 day): The Finance Unit issues a reminder letter t each relevant debtr specifying the ttal amunt due, the bank accunt the debt shuld be paid t, and a list f all invices and attaching cpies f the utstanding invices. The Accunts Receivable Officer must sign the letter n behalf f the Manager: Financial Services. Request payment (up t 60 days): The Cst Centre Manager r Business Develpment Manager frm the Divisin/Institute/Unit is t make direct cntact with the debtr requesting immediate payment. Overdue letter (60 day): The Finance Unit issues a further reminder letter t each relevant debtr specifying the ttal amunt due, the bank accunt the debt shuld be paid t, and a list f all invices and attaching cpies f the utstanding invices. Reprt t Finance Unit (Divisin/Institute/Unit Accuntant and BDM): Infrm the Finance Unit what actin has been taken accrding t the requirements shwn belw. Rle Timing Reprt t Finance Unit Divisin/Institute/Unit Accuntant Business Develpment Manager Secnd Friday f each mnth Secnd Friday f each mnth Actins taken separately frm thse f the BDM t recver aged debts Actins taken t pursue the aged debts. actin is required fr debts ver 90 days as Finance Unit fllw these up directly. These cmments will infrm the University Finance Cmmittee. Request payment (greater than 60 days): Finance Unit in cnsultatin with the Cst Centre Manager r Business Develpment Manager frm the Institute/Unit cntinue t make direct cntact with the debtr requesting immediate payment. Final ntice letter (90 day): the Finance Unit issues a further letter allwing 10 days fr payment and cntacts the debtr t request payment. tify debtr that debt cllectr will be engaged: If the debtr refuses t pay, Finance Unit infrms them that a debt cllectr will be engaged if they d nt pay the debt immediately. Delaying payments t the Debtr (Finance Unit) If the University has an utstanding debt t the rganisatin cncerned, it may be desirable t cnsider delaying payment f utstanding debts t an rganisatin that has an verdue debt t the University. 10. The Manager: Financial Services, r delegate, is t cntact the debtr and negtiate a delay in payments that will stay in place until the University has received full payment fr the relevant debts. te: When a debtr pays aged debt in full, UniSA shuld cmmence paying its utstanding debt t that rganisatin. Last Saved: 1 April 2016 Page 23 f 50

25 Recver Aged Debt 11. What has resulted frm the negtiatins? Debtr agrees t pay. Refer t Trade Debtr Takes Actin. Debtr refuses t pay. Either Engage Debt Cllectr r Write-ff Debt. Write-ff Debt (Finance Unit in Cnsultatin with Divisin/Unit) 12. The Finance Unit is t cnsult the relevant invice-requesting area (eg Cst Centre Manager r Business Develpment Manager) t agree that debt shuld be written-ff and the related Finance One debtr inactivated. te: The persn hlding the apprpriate Vice Chancellr s Authrisatin is t cmplete a FS20 requesting write-ff f the debt. The Accunts Receivable Officer is t frward the FS20 t the Chief Financial Officer fr apprval. 13. Once the FS20 has been apprved, the Finance Unit is t write-ff the debt in Finance One via a jurnal. 14. The Finance Unit updates the ntes n the Finance One debtr file, inactivates the debtr, and ntifies the requesting area f the actin. Engage Debt Cllectr (Finance Unit) 15. Manager: Financial Services selects and engages the apprpriate debt cllectin agency. te: Only the Finance Unit and the Library are permitted t engage debt cllectrs. 16. The debtr ntes are updated in Finance One and the debtr recrd inactivated. 17. Infrm the BDM Frum f the bad debtr. 7.8 Next Step If the debt is written-ff, the Accunts Receivable prcess ends at this pint fr that debtr. Otherwise, refer t Trade Debtr Takes Actin. Last Saved: 1 April 2016 Page 24 f 50

26 Student Debtrs 8. Student Debtrs 8.1 Descriptin Students wh have nt paid their tuitin fees and wh have nt re-enrlled in the next study perid are identified by SAS Finance and referred t Finance Unit fr debt cllectin actin. 8.2 Rles Student Academic Services Prvide a list f students wh are bth unenrlled and in Bad Financial Standing t the Finance Unit. Als liaise n disputes and repayment arrangements with Finance Unit and student. Finance Unit Staff in Accunts Receivable prepare crrespndence t students and liaise with students and SAS n unenrlled student debt matters. If necessary, debts are referred t a debt cllectin agency. 8.3 Prcess Flw See Attachment 6. Page 25 f 50

27 Receipting f Mnies by Campus Central 9. Receipting f Mnies by Campus Central 9.1 Descriptin Campus Central receives mnies frm students and staff and prvides a receipt frm the Enterprise Cash Receipting (ECR) systemdule f Finance One. Campus Central regularly use the ECR system t recncile receipts issued t payments received. 9.2 Rles Student r Internal Staff Payment Staff and students can make payments against an ECR line item at Campus Central. New line items can be added t the ECR system by cmpleting a Line Item Request Frm (FS29) and sending it t Financial Systems fr prcessing. It is the respnsibility f the area requesting the line item t be added t cmplete the frm and have it authrised apprpriately. If n line item is available, a Miscellaneus Payment Frm (FS18) must be cmpleted. The FS18 frm can be prcessed by Campus Central r the Finance Unit. Payments may als be made at ther lcatins as apprpriate, e.g. clinics and gyms. Cllectin Pints (Clinics and Gyms) Cllect payments frm patrns, issue receipts, and recncile payments t receipts issued. Cash is bagged and directly depsited with banks r via Campus Central. Cllectin f payments by areas ther than Campus Central is nly permitted when apprved by the Chief Financial Officer. Campus Central Prcess payments frm students and staff members, receipt payments int the ECR system, issue receipts, recncile receipts against payments received, and bank the mnies received. Accunts Receivable (Finance Unit) Recncile receipt ttals frm Campus Central with mnies banked. Finance Systems (Finance Unit) Prcess FS29 frms t add new line items t the ECR system. Page 26 f 50

28 Receipting f Mnies by Campus Central 9.3 Business Rules Invice payments must nt be made at, r received by, Campus Central. Internal staff payments can be paid by credit card, cash r cheque. Cash payments must be paid at Campus Central. Card r cheque payments can be made at either Campus Central r sent t Financial Services in Finance Unit. A receipt must be issued fr all payments, and all receipts must be accunted fr. Relevant payments can be accepted at clinics r gyms that have a sub-receipt bk which has been apprved by the Chief Financial Officer. All staff payments must be accmpanied by the apprpriate FS frm. Where the relevant Line Item is available in the ECR system, it must be used. Cash and receipts must be recnciled regularly. 9.4 Frms, Dcuments and Reprts Frms Miscellaneus Payment Frm (FS18) Line Item Request Frm (FS29) Accunts Payable Cash Advance Acquittal Frm (FS39) Sub-receipt bk Sub-receipt bks can be rdered by ing accuntsreceivable@unisa.edu.au. 9.5 Exceptins t applicable. 9.6 Prcess Receipt Payment (Campus Central) 1. Receive payment frm the staff member r student. 2. If the Line Item exists, prcess the payment int the ECR system and issue them a receipt. 3. If a Line Item desn t exist, either: If the custmer is a staff member they will be advised t cmplete an FS18 frm (see FS18 prcess). If the custmer is a student, Campus Central will cntact the area requesting payment and get them t fill ut either an FS29 r FS18 as apprpriate. 4. Payments are autmatically transferred t Finance One and will shw in the ledger within an hur f prcessing. Page 27 f 50

29 Receipting f Mnies by Campus Central 5. At clse f sessin: If cash has been taken, cunt the cash and flat and cmplete banking spreadsheet. Cmplete ECR end-f-day prcess fr bth cash and EFT payments. Print end-f-day reprts, attach any relevant dcumentatin and file. Place any cash t be banked in a bank bag cmplete with any cheques and banking slips, and seal the bag. All bank bags must be stred in a safe vernight. If a flat is used, return flat t the safe ready fr the next day. 6. Recncile payments with receipts, reslve all prblems, and have the recnciliatin recrd signed by the supervisr. FS18 Prcess (miscellaneus payment r Internal Staff Debtr) 7. Cmplete the relevant frm (listed abve). 8. Determine the mst apprpriate place t submit the payment: Finance Unit: cheque r credit card payments shuld be frwarded t the Accunts Receivable in the Finance Unit. This is the preferred path. Campus Central: fr cash r Card payments. 9. Prvide the frm and payment as apprpriate. 10. Receipt is issued as prf f payment. Funds will be prcessed t the cst centre supplied n the FS18. Receipt Payment (Clinic r Gym) 11. Obtain payment frm the custmer. 12. Prcess thrugh yur lcal receipting system. 13. Ensure mnies cllected are stred in a secure lcatin. 14. Stre mnies cllected in a lcked tin in a lcked cabinet vernight. 15. Bank mnies cllected at Campus Central r lcal Natinal Australia Bank branch at least nce a week. Create Line Item (Finance Unit) 16. Receive the Line Item Request frm (FS29) frm the Requesting Area and ensure it meets requirements. 17. Check that an equivalent Line Item desn t already exist. If nt, create the Line Item and advise requesting staff member when available. 9.7 Refunds at Campus Central Refunds must be prcessed thrugh the ECR system t the riginal payment surce. Page 28 f 50

30 Receipting f Mnies by Finance Unit 10. Receipting f Mnies by Finance Unit 10.1 Descriptin The prcess is ften triggered by the receipt f a Remittance Advice slip r the apprpriate frm. If Finance One des nt cntain an assciated invice, an invice will be raised accrding t business rules utlined in Sectin 4.4. The payment is then receipted int Finance One and any cheques are banked daily Prcess Flw See Attachment Rles Accunts Receivable (Finance Unit) The whle prcess is t be carried ut by the Finance Unit Business Rules Wherever practicable, there must be a segregatin f duties between the staff perfrming the invicing functin and the staff perfrming the receipting and banking functin. A Remittance Advice slip must be btained frm the debtr wherever pssible. If a debtr payment has n crrespnding sales invice, an invice must be raised if: a). There is an existing debtr accunt in Finance One; r b). The payment is $50 r mre (excluding GST); r c). There is n apprpriate GST cmpliant dcumentatin that supprts the payment; r d). A recipient created tax invice is required. See Sectin 4.6 fr Exceptins. All payments f invices received by the University must be receipted within 24 hurs f being received using Finance One receipt statinery. Cheques must be banked within 24 hurs frm the time they are received. Unless there is a GST determinatin frm the University s Tax Accuntant, all receipts must be prcessed as taxable Frms, Dcuments and Reprts Miscellaneus Payment (FS18) Frm Page 29 f 50

31 Receipting f Mnies by Finance Unit Payment f exam sitting fees, purchases f bslete equipment and persnal expenses by staff. Request fr an Invice (FS19) Frm If a payment is received and an invice is required in the system, the area receiving the payment must cmplete the frm and send it t the Finance Unit with a cpy t the cst centre manager fr prcessing the payment Exceptins See Sectin 4.6 fr Exceptins Prcess Assess Payment 1. Receive ntificatin f the payment which will be in the frm f: Remittance Advice: this is the preferred methd. EFT: n the bank statement. Verbal r ther. 2. Search fr the debtr in Finance One and identify their utstanding debt. 3. Has the debt been inviced int Finance One?. Refer t step 6.. Refer t step 4. Crrespnding Debt in Finance One 4. If Finance One has n assciated debt in Finance One, the Finance Unit must bank r a jurnal prcess the payment int the suspense accunt in FinanceOne. An is sent t the party t raise the invice. The debtr recrd must be credited as an Unapplied payment. 5. Return t Raise Sales Invice and fllw the prcess t this pint. Prcess Payment 6. Des the payment match with the amunt wing?. Refer t step 7.. Refer t Reslve Discrepancies (belw). 7. Is the payment being made by credit card?. Prcess the credit card payment using NAB Transact. If the payment is apprved, refer t step 8.. Refer t step 8. Page 30 f 50

32 Receipting f Mnies by Finance Unit 8. Is there a crrespnding invice in Finance One?. Refer t Receipt Payment int Finance One (belw).. Refer t Raise Invice (belw). Reslve Discrepancies 9. Identify hw the payment received varies frm the amunt wing: Freign Exchange Variatin: Refer t Freign Exchange Variatin. Under Payment: Depending n the variance, the Manager: Financial Services may decide t accept the payment as it is. In this case, prceed t step 10. If nt, raise the prblem with the debtr and request full payment. Refer t Trade Debtr Takes Actin. Over Payment: Infrm the debtr they have verpaid and arrange a refund f the verpaid amunt. Refer t Trade Debtr Takes Actin. Freign Exchange Variatin 10. If the incme is related t ne cst centre, the incme shuld be receipted int Finance One, and the freign exchange variatin allcated t that cst centre. 11. If the incme is related t mre than ne cst centre, cntact the Divisin Accuntant t find ut hw the variatin shuld be handled. Raise Invice te: Refer t the Business Rules t identify whether there needs t be an invice related t the payment. 12. Check if an invice related t the payment is recrded in Finance One. If the invice is recrded in Finance One mve t Step 14, therwise prceed t the next Step. 13. Identify wh the payment is being made t and send an requesting that they cmplete and return the Request fr an Invice (FS19) Frm and cpy the request t the cst centre manager. Receive the frm. 14. Check that the debtr exists in Finance One. Debtr Exists. Yu can prceed t step 15. Debtr Desn t Exist. Create the debtr in Finance One and prceed t step Raise a tax invice in Finance One. Receipt Payment int Finance One 16. Has the payment been made t Dcument Services?. Infrm Dcuments Services that the payment has been received and btain any necessary infrmatin.. Yu can prceed t step 17. Page 31 f 50

33 Receipting f Mnies by Finance Unit te: Payment made t Dcument Services need t be prcessed accrding t the requirements specified by Dcument Services therwise the Qute and Print system will nt match with Finance One. 17. Receipt the payment int Finance One and apply it t the apprpriate invice. Finalise 18. Bank all cheques at the end f the day. 19. Des a payment variatin need t be prcessed int Finance One (eg there may be a variatin due t freign currency cnversin r ver/under payment)?. Jurnal the variatin t the nminated cst centre using item cde 6612 fr gains and 2951 fr lsses Next Step Refer t Refund Debtr. Page 32 f 50

34 Receipting f Mnies by Dcument Services 11. Receipting f Mnies by Dcument Services 11.1 Descriptin Payments are checked against the invice, marked as paid in Qute and Print and a receipt is issued t the debtr if the payment has been made by cash. If the payment was made by EFT r cheque, Dcument Services infrms the Finance Unit. If the payment is in cash, the mney is banked and an FS31 frm is cmpleted and sent t the Finance Unit with receipts. Each mnth data is imprted int Finance One frm Qute and Print Rles Dcument Services Carry ut the whle prcess Business Rules A receipt must be issued fr all payments received. All receipts must be accunted fr. Wherever practicable, there must be a segregatin f duties between the staff perfrming the invicing functin and the staff perfrming the receipting and banking functin Exceptins This prcess des nt cver the receipt f payment fr internal sales. Finance One autmatically debits the area receiving the service and credits the Dcument Services cst centre Prcess 1. Receive remittance advice frm the debtr. 2. Cmpare the payment received with the invice raised in Qute and Print. Des the payment match?. Mve t the next Step.. Cntact the debtr and request full payment. 3. Mark the invice(s) as paid in Qute and Print. 4. Issue a receipt t the debtr: EFT payment: Print remittance advice frm Qute and Print. Cheque payment: Print remittance advice frm Qute and Print. 5. If the payment was via EFT, infrm the Finance Unit f the payment (this will enable them t allcate the payment the Dcument Services). Page 33 f 50