PD-AR-002 Finance Department Page 1 of 11 Version 2.0
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 2 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
PROCEDURE
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
PROCEDUREAll 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 3 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
PROCEDUREThe 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
PROCEDUREAccounts Receivable Administrator create and maintain customer setup detail on Agresso.
AR01-05 Sales Invoicing Agresso
PROCEDUREAll 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.
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AR01-06 Debtors Customer Services
PROCEDURE
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
PD-AR-002 Finance Department Page 5 of 11 Version 2.0
Accounts Receivable
Process Owner: Sean Ryan
Version 2
Date: 5
thJanuary 2015
AR01 - Direct Credit Transfers
Page: 1 of 7
Transaction Source Accounts Receivable Output
Advice note from Ulster Bank
Check Advice Note
Research Payment Y/N ? Send to Research Accounts for Coding Send to relevant finance source for coding
Match Advice Note with Bank Statement Bank Statements
Yes
No
Post entries in Agresso Receipt of Payments posted in Financial Statements HEA Letter received relating to
re-current or capital grants
Send to Financial Controller / VP Finance / Financial
Accountant
Match with Money receive in Bank
Ulster Bank Advice Note returned with Cost Centre to
AR Administrator
Documents scanned supporting advice payments
passed to AR Administrator
Remittance Advice from Debtor
Bank Statement
Post Transactions in
Agresso Receipt of Payments posted in Financial Statements
PD-AR-002 Finance Department Page 7 of 11 Version 2.0
Accounts Receivable
Process Owner: Sean Ryan
Version 2
Date: 5
thJanuary 2015
AR02 – Cash & Cheque Lodgements (Foreign) Page: 3 of 7
Transaction Source Accounts Receivable Output
Lodgement recorded on UL Bank Account in
Agresso
Lodgement made in Bank Cash Receipt Form
- Source Dept Complete - Amount - Cost Centre
- Foreign Cheque physically handed to AR Team
- Cheques via mail to AR Team
Code receipt of money to internal Cost Centre in
Agresso
Signed Cheque Receipt Form and allocate receipt
number by AR Administrator Verify - Sign in duplicate - Original to Source - Duplicate on File Receipt of payments transactions in University Financial Statements Calculate Foreign Exchange
PD-AR-002 Finance Department Page 8 of 11 Version 2.0
Accounts Receivable
Process Owner: Sean Ryan
Version 2
Date: 5
thJanuary 2015
AR03 - Debt Collection
Page: 4 of 7
Inputs Accounts Receivable Output
Monthly Statements
Reminder Letters
Telephone Calls
Run Aged Debt Analysis Report
Review Debt
Debt Due ?
Assign Debt Collection Responsibility - AR Team with Mgmt
Accountant
Debt Report circulated to: Management Accountant
Financial Accountant Research Accountant
VP Finance
Follow up Debt by AR Team
Debt Paid Yes Payment Received Yes If No No
PD-AR-002 Finance Department Page 9 of 11 Version 2.0
Accounts Receivable
Process Owner: Sean Ryan
Version 2
Date: 5
thJanuary 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
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 ?
Process Invoice on Sales Order Processing on Agresso - Customer ID - Order Number - Customer details - Amount - Value - Payment Schedules - Internal Contact in UL No
- Assign an internal UL Cost Centre - Assign a Sales Order Number
Enter Invoicing Module on Agresso - Assign a Order Number automatic
from System Internal Charges for External
Users of University Facilities - Spreadsheet received from
internal source - Buildings [ESB, GAS, Water, Postage]
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 Set-up Customer details on
Agresso by AR Administrator Yes
Page 6
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Accounts Receivable
Process Owner: Sean Ryan
Version 2
Date: 5
thJanuary 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
Insert headed paper and print off - Triplicate Copy
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 Process Complete
PD-AR-002 Finance Department Page 11 of 11 Version 2.0
Accounts Receivable Process Owner : Sean Ryan
Version 2 Date : 5thJanuary 2015
AR06 – Debtors Customer Services Page: 7 of 7
Inputs Accounts Receivable Dept Outputs
No Revert to Originator with resolution Yes Issue / Query identified
Query logged / filed by AR Administrator in email folder/
hard copy folder / telephone call Issue resolved Escalate to 3rdparty for help Originator Issues Resolved Source E-mail / Telephone / Letters / Faxes Build up Frequently Asked Questions knowledge base Customer services trend analysis done by
Manager of Section
Query Database updated with query types and
information AR type queries/ resolutions knowledge base AR customer services Trends Analysis
