U of A Policies and Procedures On-Line (UAPPOL)
Approval Date: May 21, 2003
Most Recent Editorial Date: July 9, 2012
Parent Policy: Financial Management and Practices Policy
External Billing Procedure
Office of Administrative Responsibility: Financial Services
Approver: Associate Vice-President, Finance & Supply Management
Services
Scope: Compliance with University procedure extends to all
members of the University community.
Overview
External Billing is the generation of a University of Alberta invoice to request payment of goods or services provided
by the University to an external party or for the recovery of expenses incurred by the University on behalf of an
external party. The University utilizes the PeopleSoft Billing and Accounts Receivable (AR) modules to process billing
transactions, track payments, and to generate customer invoices and statements.
To externally bill, a unit must become a recognized billing unit and be setup in the University’s PeopleSoft (PS) Billing
module. All external billings must be processed through this Billing module and in compliance with this procedure.
Cost recovery billings arise from agreements between an external party and the University to recover costs paid on
behalf of the external party.
Certain billing units have specific billing roles depending on funding source. Campus wide billing units only process
billings for activities supported by unrestricted funding sources (i.e. operating fund). The Research Services Office
(RSO) processes all billings for research funding. Financial Services (FS) processes all billings for the remaining
externally restricted funds.
This procedure does not apply to internal billings between University of Alberta units. The words billing or invoicing
and bill or invoice are used interchangeably.
In addition to the procedures as outlined below, the role of Financial Services also includes the following:
1. Develop and maintain institutional policy and procedures for the Billing and Accounts Receivable business
processes.
2. Custodial role for PS Billing and AR modules. Provides expertise and resources for PS development, upgrades,
and increased functionality.
3. Develop and maintain reporting for the various stakeholders (billing units, customers, and institutional reporting).
4. Provide training for PS processing, reporting/inquiry, and the related business processes.
Monitor transactions in the billing module to ensure they comply with UofA policies and procedures.
Purpose
To establish institutional procedure for external billings that support timely and prudent billing practices.
To ensure external billing transactions are recorded correctly on the University’s books.
U of A Policies and Procedures On-Line (UAPPOL)
To support effective and expedient collection practices.
PROCEDURE
Summary
1. DECISION TO ADVANCE CREDIT
2. BILLING UNIT ROLES AND RESPONSIBILITIES
3. SETUP AS A RECOGNIZED BILLING UNIT
4. CUSTOMER ACCOUNT SETUP AND UPDATES
5. BILLINGS TO FOREIGN EXTERNALS
6. GOODS AND SERVICES TAX (GST) ASSESSMENTS
7. PROCESSING IN BILLING MODULE
8. CORRECTING BILLINGS
9. SUPPORTING DOCUMENTATION
10. PAYMENT ISSUES & RETURNED ITEMS
11. MONTH AND YEAR END CONSIDERATIONS
12. VERIFY BILLING REVENUE
13. COLLECTIONS, WRITE-OFFS, RECOVERY OF WRITE-OFFS AND CREDIT BALANCES
Procedure Details:
1. DECISION TO ADVANCE CREDIT
The decision to bill and not obtain payment at the time a good or service is provided or a recoverable cost is paid is
an implicit decision to advance credit. In effect the University is financing the related expenditures until payment is
received. This decision rests with the senior administrator having accountability for the unit providing a good or
service or considering the payment of a cost on behalf of another and requires careful consideration of the unit’s risk
tolerance and a clear understanding of the responsibilities that come with being a billing unit.
[Return to Summary]
2. BILLING UNIT ROLES AND RESPONSIBILITIES
- set up request as a recognized billing unit
- following the established billing roles whereby campus-wide billing units process billings for activities supported by
unrestricted funding sources, RSO for research funding and FS for the remaining externally restricted funds.
- determine the credit worthiness of potential customers or business partners
- ensure an appropriate internal approval process for requesting the addition of new customer accounts.
U of A Policies and Procedures On-Line (UAPPOL)
- ensure a documented agreement/contract is in place between the unit and the external before good or service is
provided or a recoverable cost is paid. The agreement may be a purchase order (PO), a work order or properly
executed contract. The billing unit must ensure the representative signing on behalf of the external has the authority
to do so. Agreements should address fee/price, returns/refunds, billing and payment terms and any other applicable
matters.
- All invoices to Capital Health (CH) MUST include: 1) contact name at CH; 2) complete functional centre code. These
codes are 17 digits in length. The codes begin with 201xxx for CH operating codes, and 203xxx for CH trust codes.
- The billing unit must advise the customer that the University’s standard payment terms are net 30 days.
It is preferable that agreements be structured in Canadian currency. Although agreements in US dollars (USD) are
easily managed, agreements in other foreign currencies are strongly discouraged (see ‘Billings to Foreign Externals’
below).
- ensure all external billings (including credit invoices) are processed in the University’s Billing module.
- ensure the applicable agreement reference number (i.e. PO, work order or contract number) is cited on billings.
- ensure appropriate GST assessments on billings.
- ensure appropriate authorization and internal control approval practices are in place to approve the unit’s invoices.
Approvals are to be evidenced on a billing’s supporting documentation or on a ‘pro forma invoice’ that can be printed
from the Billing module before the in-progress invoice is changed to ‘ready’ status. Applicable supporting
documentation is to be attached to the approved ‘pro-forma invoice’.
- ensure staff with billing duties are sufficiently trained.
- ensure in-error billings (in the Billing module) are resolved with in a timely manner and in accordance with month
and year end processing schedules. In-error billing issues are to be addressed before invoices are mailed out.
- ensure billings are processed and sent in a timely manner upon the delivery of goods or services or payment of a
recoverable cost. Billings are to be forwarded to the external’s accounts payable department and, if required, a
courtesy copy to client contact. Billings should be processed no later than 7 days after the delivery of the good or
service.
- ensure the unit maintains appropriate housekeeping in the Billing module and does not contribute to unprocessed
billing ‘clutter’.
- verify the unit’s billing revenue is correctly reflected in their financial reports (see ‘Verify Billing Revenue’ below).
- monitor the unit’s aged accounts receivable and follow up on outstanding accounts in a timely and appropriate
manner (see ‘Collections, Write-offs, Recovery of Write-offs and Credit Balances’ below). Bad debits will be charged
back (expensed) to billing units.
- maintain orderly and secure records for six (6) prior years plus the current year (see ‘Retention of Source
Documents’ below).
[Return to Summary]
3. SETUP AS A RECOGNIZED BILLING UNIT
To become a recognized billing unit and be set up in the Billing module submit the Billing Unit Setup and Update
Request form to [email protected]. The request must be signed by the Internal Control person within the Unit.
FS will provide external billing keying services for central service units and faculties (faculty wide basis) that process
less than ten billings per year. All other responsibilities (see ‘Billing Unit Roles and Responsibilities’ above) remain
U of A Policies and Procedures On-Line (UAPPOL)
with the billing unit. Contact FS if you believe your unit falls into this category.
[Return to Summary]
4. CUSTOMER ACCOUNT SETUP AND UPDATES
When a billing unit requests a customer setup, it is assumed that the unit is satisfied with the customer/business
partner’s credit worthiness. To avoid requesting the setup of an existing customer, a billing unit would use the
AAA_AR_Customer Search query. To have a customer account set up, submit a Customer Setup and Update
Request to [email protected]. The request must be approved by the Internal Control person (generally the supervisor)
within the unit.
It is imperative that customer accounts reflect current address information. Billing units are asked to supply change of
addresses to FS in a timely manner. FS monitors for duplicate and inactive customer accounts. FS may also
inactivate customer accounts in response to bad debt related activity.
[Return to Summary]
5. BILLINGS TO FOREIGN EXTERNALS
It is preferred that agreements/contracts with foreign externals be structured (billings & payments) in Canadian dollars
(CDN). This transfers any foreign exchange risk to the third party.
a. The next best option is to structure an agreement in United States dollars (USD). In this case, the agreement
between Billing Unit and External Customer must be established in USD. The invoice will be created in US dollars
under a USD currency customer account. Funds must be received in US dollars to avoid exchange rate differences.
To minimize the risk to billing units and help a unit’s plan and budget without exchange rate considerations, nominal
US exchange differences between the invoice date and the payment date are absorbed centrally. However, units
billing in excess of $100,000 USD per invoice are to contact FS regarding ‘hedging’ (the purchase of a forward
contract to lock in a future exchange rate). Failure to do so may result in charge-backs to the billing units in the event
of material exchange rate losses. Also, on long-term contracts with multiple progress billings, billing units do assume
the currency risk between the contract date and the invoice date(s).
b. The least desirable alternative is to structure an agreement in a currency other than CDN or USD. The invoiced
amount must be converted to CDN for processing in the Billing module. Upon payment, FS will arrange to send the
foreign item out for collection. This can take considerable time and the service charges will be passed on to the billing
unit. Nominal exchange differences between the invoice date and payment date will be absorbed centrally. Material
gains or losses will be credited or charged back to the billing unit. Again on long term contracts with multiple billings,
billing units do assume the currency risk between the contract date and the invoice date(s).
If an agreement is structured in CDN or USD but payment is received in some other currency, FS will coordinate
collection of the foreign item as outlined in 4.b).
If conducting business with a US agency, they may request a W8-BEN form. The University of Alberta is registered
for tax purposed with the U.S. Internal Revenue Service. The W8-BEN form identifies the University of Alberta as a
Registered Charity which is exempt from US Income TAX. For details in filling out this form, please refer to the Guide
for Financial Management – Chapter 3 – General Financial Information – Business Identification numbers.
It is highly desirable for all foreign currency payments to be made by electronic funds transfer (EFT) as
conversion to CDN would occur immediately with minimal delay and maximum security. Refer to the
University’s EFT Incoming Payment Procedure.
[Return to Summary]
6. GOODS AND SERVICES TAX (GST) ASSESSMENTS
It is the billing unit’s responsibility to ensure each billing receives the correct GST assessment.
U of A Policies and Procedures On-Line (UAPPOL)
The Billing module has built in GST functionality that automatically calculates certain GST treatments based on which
of five (5) possible GST codes is assigned to a billing. Therefore the correct GST treatment is a function of the billing
unit assigning the correct GST code.
The five (5) possible GST assessment codes, along with some common examples, are:
a. Taxable Sales (TS) Assessment
Applies to goods and services or cost recovery billings pertaining to a University-produced good, a good or service
purchased by the University for re-sale, registration fees (i.e. conferences, workshops, seminars, short courses),
rental or lease of real property for periods of less than one month, license to use real property, lease/license or similar
arrangement for parking space, equipment rentals, short term (less than one month) accommodation, recreational
services that are not part of a program supplied to children 14 years of age and under or to disabled persons, event
admission over $1.00, catering services, photocopy services, and research services when a prototype or product is
developed for which title passes to the grantor.
b. Exempt Sales (ES) Assessment
Applies to most University supplied services (see ‘a. Taxable Sales’ above for exceptions). Applies to goods and
services or cost recovery billings pertaining to a series of two or more classes in recreational programs provided
primarily (>50%) to children age 14 and under or to disabled persons, sales priced below direct cost, sales of used or
donated goods, advertising services, event admission of $1.00 or less, long-term (at least one month)
accommodation, and long term rentals of real property (at least one month) unless the property has been elected
commercial. This also applies to research contracts that consist only of providing a research service.
c. Zero Rated Sales (ZS) Assessment
Applies to taxable sales of goods and/or services and cost recovery billings pertaining to sales to provincial
government bodies/departments (see the GST website for a complete list) that provide a letter of exemption, to status
Indians when the goods are delivered to the reserve and services provided on the reserve, to non-residents if the
good or service is exported (proof of export must be retained in the unit). Applies also to prescription drugs and
biologics, medical and assistive devices, agriculture and fishing products as listed on the GST website.
d. Not Taxable (N) Assessment
Applies to billings when nothing is being supplied in return for the payment. These types of billings do not pertain to a
sale of any type. They include grants, donations and sponsorship of events but only if nothing is being supplied in
return to the donor. This also includes advances/loans pertaining to research contracts.
If you are not sure that tax code N is correct contact Financial Service’s GST Analyst for verification.
e. Harmonized Sales Tax (HST) Assessment
As this assessment is rarely applicable, please contact Financial Service’s GST Analyst before using this code. It
applies to billing for goods and services supplied and consumed within the participating provinces of New Brunswick,
Nova Scotia, Newfoundland, and Labrador.
For detailed information on types of Sales refer to GST appendices. Billing units are to contact FS’s GST
Analyst if unsure about determining the applicable tax assessments.
[Return to Summary]
7. PROCESSING IN BILLING MODULE
All external billings are to be processed in the PeopleSoft Billing module. Specific billing processes are covered
in the module’s training manual. (Available on the Finance Learning Initiative Website.)
Large volume billing units are encouraged to contact FS to discuss using an interface file to upload data into the
Billing module.
U of A Policies and Procedures On-Line (UAPPOL)
[Return to Summary]
8. CORRECTING BILLINGS
To process billing corrections, first issue a credit invoice to reverse the initial incorrect billing, then re-issue a
corrected invoice under a new invoice number. Credit invoices are also to be used to reverse errant billings that need
to be cancelled all together. Although the billing module will automatically reference the original billing number on the
credit invoice, units are to record the explanation as to why the credit is being issued.
As credit invoices affect adjustments to recognized revenue, they require special scrutiny and appropriate internal
authorization and internal controls.
[Return to Summary]
9. SUPPORTING DOCUMENTATION
Billing units are required to maintain orderly and secure records for 6 prior years plus the current fiscal year for a total
of 7 years.
Records should be filed by fiscal year by journal number. For easy access, it is recommended that records be
retained at the faculty or department level for the billing units within that faculty or department.
‘Billing Jackets’ can be an effective means of retaining orderly billing documents. Please refer to the forms cabinet on
the Financial Services website.
Supporting Documentation must be retained for audit purposes and should include:
a. Appropriate authorization and approval of the invoices, and invoice copy
rd
b. Copy of the agreement with the 3 party for the sale of goods or services
c. Copy of original purchase order
[Return to Summary]
10. PAYMENT ISSUES & RETURNED ITEMS
FS requests that billing units promote payment of invoices by electronic funds transfer (EFT) so that payment can be
transferred directly to the University’s bank. FS will provide customers with University’s EFT payment information.
(Please refer to Electronic Funds Transfer (EFT) Incoming Payment Procedure.) The University also accepts payment
by cheque or bank draft payable to the University of Alberta.
Payments are to be sent to FS. The Billing module automatically prints this information on all invoices along with the
appropriate mailing address. Payments received at the billing unit are to be forwarded immediately to FS, not to
Cashier as this could result in revenue being posted twice and the customer’s AR account not being credited with the
payment. FS processes payments daily.
The FS may write off residual differences between invoice and payment amounts associated with non-recurring
customers.
Payments without an identifying billing reference (i.e. University of Alberta invoice number) are placed in a suspense
account and followed up by FS.
Cheques returned for Not Sufficient Funds (NSF) will result in the initial payment transaction being reversed in the
customer’s AR account and aged from its original billing date. The respective billing unit will be notified by e-mail. It is
the billing unit’s responsibility to follow-up with their customer. The customer’s AR account will be assessed a $25.00
administrative fee for NSF items to offset the related bank service fees incurred by the University. For other returned
cheques, FS will take the appropriate action depending upon the reason for the return.
U of A Policies and Procedures On-Line (UAPPOL)
[Return to Summary]
11. MONTH END AND YEAR END CONSIDERATIONS
In-error Billings
Units are responsible for resolving any unbilled amounts and in-error billings that occurred during the month. Any
billing items outstanding at month end must be resolved by 11 AM on the first business day of the month or fiscal
year. Any items after this time will be deleted by FS who will notify the billing unit via e-mail of this action. UofA
Financial Month End Schedule.
Month End Accruals
Material (large) outstanding billing amounts may be accrued prior to a month end close based on the degree to which
this information is important to a unit’s operations and decision-making requirements.
Year End Accruals & Work in Progress Billings
At yearend, units must accrue outstanding billing amounts in accordance with the University’s Financial Year End
Plan, which addresses processing deadlines and related matters.
Please refer to the Guide for Financial Management on the Financial Services website for additional detail about
accruals.
Work-in-Progress Billings
Definition : A work-in-progress billing is an invoice or an internal billing that is issued to record the revenue related to
costs incurred to date.
Issuing an External Work-in-Progress Billing
If a job or work order is partially complete at March 31, and a progress billing is allowed under the terms of the job or
work order, then a work-in-progress invoice dated March 31 should be issued for costs incurred to date. When the
final invoice is issued in the new fiscal year, the amount of the work-in-progress billing should be deducted from the
total cost of the job or work order.
[Return to Summary]
12. VERIFY BILLING REVENUE
The Billing unit is responsible for the review and verification of revenue processed through the billing module.
On-line queries and reports exist to assist billing units in ensuring their billing revenue is correctly reflected in their
financial reports. The External Billing training manual also details useful inquires.
Discrepancies most often result from billings not being set to ‘ready’ or from budget errors where by the invoice will
not post to the general ledger. Incorrect entry of a chartfield will result in the invoice being incorrectly posted. In each
case, the billing unit can take the appropriate action to address the respective discrepancy. Other discrepancies
should be promptly reported to [email protected] indicating “Billing Unit Revenue Discrepancy” in the subject line.
[Return to Summary]
13. COLLECTIONS, WRITE-OFFS, RECOVERY OF WRITE-OFFS AND CREDIT BALANCES
A billing unit’s conscientious attention to the clarity of its agreements, to timely billing practices and follow up on
overdue accounts will significantly reduce collection problems and the likelihood of bad debts. Billing units are
required to look at their accounts receivables on an on-going basis (at a minimum monthly) and take the appropriate
action with their customers.
U of A Policies and Procedures On-Line (UAPPOL)
On-line queries and reports exist to assist billing units. Billing units can have access to customer conversation,
payment status, customer statements, and past due account letters.
FS assists with collections by corresponding with customers with outstanding accounts as follows:
- a monthly Statement of Account
- a 60 days past-due-account letter at approximately 90 days past the billing date
- a 90 days past-due-account letter at approximately 120 days past the billing date
Returned invoices and statements (i.e. due to incorrect address) will be forwarded to the billing unit(s) for correction
(where appropriate). If billing unit(s) does not provide a revised address, FS will write-off the invoice back to the billing
unit(s) and inactivate the customer, where FS has determined a definite credit risk.
Billing units are to send past due amounts status updates (reason, follow-up actions and timelines, etc.) to
[email protected] indicating “AR Outstanding Account Update” in the subject line. FS will add these comments to the
customer conversation page.
At approximately 120 days past due, FS will write-off outstanding accounts as a bad debt expense to the billing unit
and inactivate the respective customer account and document the reason for doing so in the customer conversation
page (if appropriate). The GST portion of written-off accounts is charged back to Canada Revenue Agency.
Billing units that wish to set up an allowance for bad debts can do so by contacting FS for further information.
If a cheque made payable to the University of Alberta, for payment of an invoice, has been rejected by our bank due
to insufficient funds (NSF), the invoice will be reinstated, and the department contacted. If the reinstated invoice ages
over 120 days past due, it will be written off by FS to the department bad debt expense account.
A billing unit can opt to initiate collection proceedings by a collection agency however, in doing so the billing unit
assumes responsibility for all associated costs. Collection agencies will charge a fee equal to a percentage (i.e. 20%
or more) of the outstanding amount. Billing units wishing to initiate this action are to advise FS accordingly. FS will be
the billing unit’s liaison with the collection agency, providing the billing unit with the agency’s collection terms and
conditions. The billing unit is to provide copies of all supporting documentation and other applicable information to FS.
FS will coordinate with the collection agency activity and keep the billing unit apprised of the agency’s progress.
Amounts recovered by the collection agency (net of agency fees) will be credited back to the billing unit.
Recovery of Write-offs
Any payments for billings that had been written-off as bad debts are to be forwarded to FS . These payments will be
credited back to the chartfield combination associated with the billing. If the payment includes GST, this portion will be
forwarded to Canada Revenue Agency. FS will notify the billing unit of this transaction.
Credit Balances
In the event of a credit balance resulting from an over payment, duplicate payment or errant payment of a cancelled
invoice, FS will
- follow-up with the customer and, if approved by the client, apply the credit amount to another outstanding invoice, or
- refund the credit balance.
FS processes refunds monthly or on an ad hoc basis during the month as required.
FURTHER INFORMATION AND SUGGESTED PRACTICES
1. The Decision to Invoice
It is strongly suggested that units do not externally bill for retail type transactions that could easily be paid at the point
U of A Policies and Procedures On-Line (UAPPOL)
of sale by some method of cash payment (credit or debit card, cheque, bank draft or currency). Such transactions all
but eliminate the risk of a bad debts and the cost of invoice processing and collection. Billing for small dollar amounts
should be avoided where possible. What constitutes a small dollar sale is at the discretion of the selling unit, however
it is suggested that transactions of less than $50 be by cash sale. Selling units may externally bill for small dollar
amounts due to other considerations. In either case, units should consider the cost effectiveness of each process and
that the appropriate controls are in place for cash handling.
Determining Worthiness of Potential Customers and Business Partners
The onus is on the “credit givers” (billing unit) to determine the credit worthiness of their customers. It is suggested
the credit only be extended to:
- high profile customers with well established business reputations
- clients and business partners with whom the unit/University has had successful previous dealings
- clients and business partners believed to be a low or no risk for bad debits
- government agencies
- student services units that grant credit to students.
2. Establishing Price
The billing unit must ensure that the cost of the supply/service or expense recovery reflect the full cost (both direct
costs and indirect costs).
- Billing units, which price their good/service on the basis of direct costs only, are under pricing.
- Direct costs are those which are traceable (i.e. specific material, labor costs, administrative time that can reasonably
be measured).
- Indirect costs are those, which are not traceable to the specific activity (i.e. salaries of Chairs and administrative
staff, regular telephone service, supplies not specifically charged out).
- An appropriate indirect cost rate can be calculated as budgeted indirect unit costs divided by budgeted direct unit
costs.
- Expense recoveries are generally a specifically identified expense (i.e. a specific salary).
- Review on a regular basis (i.e. annually) that all pricing policies in place adequately cover all costs (both direct costs
and indirect costs).
3. Centralized Point or One Point of Data Entry
To achieve an efficient, effective and accurate process within the Faculty or major central services administrative unit,
FS recommends a centralized point or one point of data entry be assigned to keying, assembling supporting
information, securing approvals, filing, etc. With this one point, it is recommended that the staff designated as the
internal control approval roles also be somewhat restricted.
4. Coding and Sample Accounting Entries
External sales of goods and services and cost recoveries are recorded in the operating fund and ancillary fund. The
revenue account is in the 402xxx range. The unit has the choice of coding to a summary level or a detailed level,
depending upon their reporting requirements.
Sales of goods and services are not restricted funding and therefore should not be recorded in the restricted funds.
U of A Policies and Procedures On-Line (UAPPOL)
Sales of goods and services are reported on at the institutional level. A unique revenue account must be established
for revenue generating activity that exceeds $100,000.00 annually.
Cost recoveries should be processed (as a credit) to the expense account where the expense was incurred
(excluding salary and benefit accounts).
Units billing for deferred revenue must contact FS to set up the appropriate deferred revenue accounts for deferred
revenue accounting.
Sample Accounting Entries (AR = Accounts Receivable module, BI = Billing module, Cashier = Cashier module, FS
AR = Financial Services, Accounts Receivable Unit, GL = General Ledger)
a. Sale of good/service with 5% GST (Code TS)
To record billing unit revenue & balance
owing in customer account in AR:
Account
Fund
DeptID
DR amt.
CR amt
Billing unit records revenue in BI. BI posts
revenue in GL.
402001
210
099999
$1,000.00
BI creates GST payable in GL
202201
100
710203
$50.00
BI creates customer’s Accounts
Receivables
100401
100
710203
$1050.00
b. External Expense Recovery with 5% GST (Code TS)
To record cost recovery type billing:
Account
Fund
DeptID
DR amt.
CR amt
Billing unit records recovery in BI, BI posts
offset in the respective GL expense
account.
502101
210
099999
$1,000.00
BI creates GST payable entry
202201
100
710203
$50.00
BI creates customer’s Accounts
Receivables
100401
100
710203
$1050.00
DR amt.
c. Sale of good/service with no GST (Codes N, ES & ZS)
To record revenue:
Account
Fund
DeptID
Billing unit records revenue in BI. BI posts
revenue in GL.
402001
210
099999
BI creates customer’s Accounts
Receivables
100401
100
710203
$1,000.00
DR amt.
CR amt
$1,000.00
d. External Expense Recovery with no GST (Codes N, ES & ZS)
To record revenue:
Account
Fund
DeptID
Billing unit processes billing in BI, BI posts
offset in the respective GL expense
account
502101
210
099999
BI creates customer’s Accounts
Receivables
100401
100
710203
CR amt
$1,000.00
$1,000.00
U of A Policies and Procedures On-Line (UAPPOL)
e. Customer Payments
To record customer’s payment on account:
Account
Fund
DeptID
FS AR processes payment in Cashier &
applies it against customer account in AR
100401
100
710203
Cashier creates offset in GL (bank
account)
1xxxxx
100
710203
$1050.00
Reverse original revenue entry:
Account
Fund
DeptID
DR amt.
Billing unit process Credit Invoice in BI
(reverses original revenue posting)
402001
210
099999
$1,000.00
BI creates GST payable adjustment
202201
100
710203
$50.00
BI creates adjustment in customer’s AR
account
100401
100
710203
DR amt.
CR amt
$1050.00
f. Credit Invoice with 5% GST (Code: TS)
CR amt
$1050.00
g. Credit Invoice with no GST (Codes N, ES & ZS)
Reverse original revenue entry:
Account
Fund
DeptID
DR amt.
Billing unit process Credit Invoice in BI
(reverses original revenue posting)
402001
210
099999
$1,000.00
BI creates adjustment in customer’s AR
account
100401
100
710203
CR amt
$1,000.00
h. Not Sufficient Funds (NSF) Returned Cheque & Re-payment
Reversed initial payment:
Account
Fund
DeptID
DR amt.
FS AR reinstates balance owing on
customer’s AR account plus NSF admin
fee
100401
100
710203
$1,025.00
FS AR records NSF admin fee
402001
100
710201
$25.00
Offset in GL (bank account)
1xxxxx
100
710203
$1,000.00
Record re-payment including NSF admin
fee:
Account
Fund
DeptID
FS AR processes payment to account in
AR
100401
100
710203
Offset in GL (bank account)
1xxxxx
100
710203
$1,025.00
Account
Fund
DeptID
DR amt.
DR amt.
CR amt
CR amt
$1,025.00
i. Write-off Bad Debit (Uncollectible) Account
with 5% GST (TS):
CR amt
U of A Policies and Procedures On-Line (UAPPOL)
FS AR records bad debt expense to billing
unit
502671
210
099999
$1,000.00
AR creates GST payable adjustment
202201
100
710203
$50.00
AR creates adjustment to AR
1xxxxx
100
710203
no GST (N, ES, ZS):
Account
Fund
DeptID
DR amt.
FS AR records bad debt expense against
billing unit
502671
210
099999
$1,000.00
AR creates adjustment to customer’s AR
account
1xxxxx
100
710203
$1050.00
CR amt
$1,000.00
j. Recovery of Written-off (Uncollectible) Account – entry may vary based on current vs. prior year and dollar value
considerations
Reverse Bad Debt Exp. with 5% GST (TS):
Account
Fund
DeptID
DR amt.
CR amt
FS AR reverses Bad Debt Expense
502671
210
099999
$1,000.00
AR creates GST payable adjustment
202201
100
710203
$50.00
AR creates adjustment to customer
account
100401
100
710203
$1050.00
Record payment in AR:
Account
Fund
DeptID
DR amt.
FS AR processes AR payment
100401
100
710203
Cashier creates offset in GL (bank
account)
1xxxxx
100
710203
CR amt
$1,000.00
$1,000.00
k. Recovery of Bad Debt by Collection Agency (full payment of $1,000 debt, less 20% agency fee)
Reverse portion of Bad Debt Expense:
Account
Fund
DeptID
FS AR adjusts Bad Debt Expense
502671
210
099999
AR creates adjustment to customer
account
100401
100
710203
$800.00
Record payment in AR:
Account
Fund
DeptID
DR amt.
FS AR processes payment in Cashier &
applies payment to client account in AR
100401
100
710203
Cashier creates offset in GL (bank
account)
1xxxxx
100
710203
DEFINITIONS
There are no definitions for this Procedure. [▲Top]
FORMS
Should a link fail, please contact [email protected]. [▲Top]
DR amt.
CR amt
$800.00
CR amt
$800.00
$800.00
U of A Policies and Procedures On-Line (UAPPOL)
Billing Unit Setup and Update Request
External Billing Customer Setup and Update Request
USD Invoice (Converting CDN to USD)
USD Invoice (Converting USD to CDN)
RELATED LINKS
Should a link fail, please contact [email protected]. [▲Top]
Guide to Financial Management - Month End Schedule (University of Alberta)
Guide to Financial Management – Sales of Service and Products (University of Alberta)
Guide to Financial Management – Year-end Schedule (University of Alberta)
PeopleSoft External Billing Module (University of Alberta)
Online Queries and Reports (University of Alberta)