REVISION HISTORY Rev. No. Date Description of Change Process Owner 1.00 Aug-2007 Original Final Version Approved Liam Ryan, AR Staff 2.00 Jan-2015 Revised structure of documents in line with new template for 2014 QMS review. Sean Ryan, AR Staff Introduction This document details the processes associated with the Accounts Receivable Function. It outlines the support and services supplied to the Finance staff and to the wider University community. There are a number of sub processes that are required to perform this function. Each sub process is defined below in both a descriptive format as well as in a flowchart. They main sub processes are: AR01-01 Direct Credit Transfers AR01-02 Cash & Cheque Lodgements AR01-03 Debt Collection AR01-04 Maintain Customer Database AR01-05 Sales Invoicing Agresso AR01-06 Debtors Customer Services RESPONSIBILITY The Accounts Receivable Team are responsible for this process. DOCUMENTATION User guide document is available on the shared training documentation folder at \\iota\finance\training\trainingdocumentation This folder contains User Guides specifically written for the Finance Users and Online Customers detailed and quick reference guides of the Agresso system at the University of Limerick. There are also some training videos available on the Finance Website to assist users to use this technology. PD-AR-002 Finance Department Page 1 of 11 Version 2.0
It also contains User guides on how to manage aspects of their desktop computing to help them to perform their duties with the assistance of appropriate technology. RECORDS Refer to UL s Records Management and Retention Policy. All records are maintained on our Agresso Financial System. Finance adheres to the University s records management and retention policy. PROCESS VERIFICATION Evaluation of all Accounts Receivable process effectiveness is carried out using internal self-assessment and customer feedback reviews. Evaluation is also carried out via the annual external auditing process by PWC. AR01-01 Direct Credit Transfers All direct credit advice notes received from bank must be matched with bank statement. Advice notes are checked as to whether it is a research payment or not. If Research Payments, they are passed to Research Accounts Department for coding and are then returned to AR Dept. All other remittance advices and direct credit transfer payments are received by the AR administrator and these are coded and processed on GL in Agresso. Accounts Receivable Administrator receives remittances from Debtors. They are then validated and checked with entries in bank account along with the aged debt report and are then posted to Agresso. All HEA Letters [Re-Current / Capital Grants] forwarded to Financial Controller / Capital Accountant for review and then passed to accounts Receivable Administrator for processing on Agresso. Receipt of payments recorded in the Financial Statements of the University. AR01-02 Cash & Cheque Lodgements All cash & cheques received in AR office must have a completed cash receipt form and signed. Original cash receipt form is signed, stamped and given to source plus copy kept on file in finance. PD-AR-002 Finance Department Page 2 of 11 Version 2.0
Cash and Cheques received are entered in the Cash Receipt book. Cash lodged directly to Bank by Source Departments must submit cash Receipt form to AR Department, (Graphics, Activity Centre at Killaloe and Building Office, SAA, Library). These in turn are then entered on the GL in Agresso. Withholding tax from received by Accounts Receivable Administrator are sent directly to the Revenue Commissioners for payment. AR01-03 Debt Collection The AR administrator runs the monthly Aged Trial Balance Report in the AR Module on Agresso (Excelerator report). Aged Trial Balance Report outlines the debt outstanding at the end of every month. This is done through, Monthly Statements, Reminder Letters, Telephone Calls. All mechanisms flow from the Aged Trial Balance Report. The Accounts Receivable Administrator initiates different mechanisms to follow up on cash outstanding via monthly statements, reminder letters/emails and telephone calls and meetings. The AR administrator reviews Debt outstanding, checks age of debt, collectable or not collectable. When debt is paid it is processed through Agresso to the relevant Debtors account. AR01-04 Maintain Customer Database Accounts Receivable Administrator create and maintain customer setup detail on Agresso. AR01-05 Sales Invoicing Agresso All invoice requisitions are sent manually from source depts to the Accounts Receivable Administrator. These are validated and processed on the Sales order section of Agresso. Invoicing is done on a daily basis and can be broken down into the following categories, telephone / electricity / catering and miscellaneous. Invoices are sent manually by post. Payments are received in the form of cash/cheque or EFT generally (ref cheques being phased out from Sept 14 ruling) to which the payment is then allocated. Also processed through Agresso are the Cross Charges, these are not invoiced as they are internal and the AR administrator enters these through dataloads from the various cost centres on the request of Clare McCracken & Anne Madigan in ITD. The charges include Reprographics/Internal Post/Mobiles/Internal Phones and Mobile Hardware. PD-AR-002 Finance Department Page 3 of 11 Version 2.0
AR01-06 Debtors Customer Services Queries in relation to invoices outstanding and payment queries are raised by phone / email with Accounts Receivable Administrator. - Queries are logged / filed in email folder - Issues are investigated and resolved - If not resolved are escalated to 3rd party for resolution such as Originator within University, Related Campus Companies - Query database is updated with query types and information PD-AR-002 Finance Department Page 4 of 11 Version 2.0
Accounts Receivable Process Owner: Sean Ryan Version 2 Date: 5 th January 2015 AR01 -Direct Credit Transfers Page: 1 of 7 Transaction Source Accounts Receivable Output Advice note from Ulster Bank Check Advice Note Yes Research Payment Y/N? No Send to Research Accounts for Coding Send to relevant finance source for coding Ulster Bank Advice Note returned with Cost Centre to AR Administrator Bank Statements Match Advice Note with Bank Statement HEA Letter received relating to re-current or capital grants Post entries in Agresso Receipt of Payments posted in Financial Statements Send to Financial Controller / VP Finance / Financial Accountant Documents scanned supporting advice payments passed to AR Administrator Remittance Advice from Debtor Match with Money receive in Bank Bank Statement Post Transactions in Agresso Receipt of Payments posted in Financial Statements PD-AR-002 Finance Department Page 5 of 11 Version 2.0
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Accounts Receivable Process Owner: Sean Ryan Version 2 Date: 5 th January 2015 AR02 Cash& Cheque Lodgements (Foreign) Page: 3 of 7 Transaction Source Accounts Receivable Output Cash Receipt Form - Source Dept Complete -Amount - Cost Centre Verify - Sign in duplicate - Original to Source - Duplicate on File Signed Cheque Receipt Form and allocate receipt number by AR Administrator -Foreign Cheque physically handed to AR Team -Cheques via mail to AR Team Calculate Foreign Exchange Rate Code receipt of money to internal Cost Centre in Agresso Receipt of payments transactions in University Financial Statements Lodgement recorded on UL Bank Account in Agresso Lodgement made in Bank PD-AR-002 Finance Department Page 7 of 11 Version 2.0
Accounts Receivable Process Owner: Sean Ryan Version 2 Date: 5 th January 2015 AR03 -Debt Collection Page: 4 of 7 Inputs Accounts Receivable Output Monthly Statements Run Aged Debt Analysis Report Reminder Letters Review Debt Telephone Calls No Debt Due? Yes Assign Debt Collection Responsibility -AR Team with Mgmt Accountant If No Debt Report circulated to: Management Accountant Financial Accountant Research Accountant VP Finance Follow up Debt by AR Team Debt Paid Yes Payment Received PD-AR-002 Finance Department Page 8 of 11 Version 2.0
Accounts Receivable Process Owner: Sean Ryan Version 2 Date: 5 th January 2015 AR04 - Maintain Customer Database Page: 5 of 7 Transaction Source Accounts Receivable Output Originating Depts such as Research, Buildings, Ancillary Services, Energy completed Invoice Requisition Form relating to external services Internal Charges for External Users of University Facilities -Spreadsheet received from internal source - Buildings [ESB, GAS, Water, Postage] Validation Check - Customer Name & Address - Company Contact Person - Company Reference Number - Description of Goods / Services -Net Value plus Vat Element - Cost Centre Number -Requested by - Payment Schedule Process details on Agresso -Setup already? No Yes Set-up Customer details on Agresso by AR Administrator Process Invoice on Sales Order Processing on Agresso - Customer ID - Order Number - Customer details -Amount -Value - Payment Schedules -Internal Contact in UL Logon to Agresso Customer Database Open Customer Master File Update Customer Fields =>Customer ID => Customer Group => VAT Registration Enter Address Information => Contact Person => Position => Country => Address =>Place Enter the Invoice Tab =>Payment Terms => Tax Codes -Assign an internal UL Cost Centre -Assign a Sales Order Number Enter Invoicing Module on Agresso -Assign a Order Number automatic from System Page 6 PD-AR-002 Finance Department Page 9 of 11 Version 2.0
Accounts Receivable Process Owner: Sean Ryan Version 2 Date: 5 th January 2015 AR04 - Maintain Customer Database Page: 6 of 7 Transaction Source Accounts Receivable Output Page 5 Search for Invoice Order Number - W=> Working - T=>Terminated If T => Tools show report print out => schedule of invoices ready to print Insert headed paper and print off - Triplicate Copy Process Complete Batch of Invoices with header sent to the Customer Batch of invoices sent to Research Accounts Dept Copy batch of invoices filed in Accounts Receivable Dept of UL PD-AR-002 Finance Department Page 10 of 11 Version 2.0
Accounts Receivable Process Owner : Sean Ryan Version 2 Date : 5 th January 2015 AR06 Debtors Customer Services Page: 7 of 7 Inputs Accounts Receivable Dept Outputs Issue / Query identified Query logged / filed by AR Administrator in email folder/ hard copy folder / telephone call Issues Resolved Yes Originator Source E-mail / Telephone / Letters / Faxes No Revert to Originator with resolution Issue resolved Escalate to 3 rd party for help Query Database updated with query types and information Build up Frequently Asked Questions knowledge base AR type queries/ resolutions knowledge base Customer services trend analysis done by Manager of Section AR customer services Trends Analysis PD-AR-002 Finance Department Page 11 of 11 Version 2.0