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AR Credit Invoice Approvals AR Credit Invoice Approvals

AR Credit Invoice Approvals - PowerPoint Presentation

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AR Credit Invoice Approvals - PPT Presentation

Cluster Director Meeting February 28 2012 Overview What is a Credit Invoice Invoices are created in EFS when goods or services are sold and payment is not collected at the time of the sale If an invoice contains errors or goods are returned a credit must be completed in the financial s ID: 652423

invoice credit approver adjustment credit invoice adjustment approver cluster form rebill request billing invoices approval efs transaction training actions

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Slide1

AR Credit Invoice Approvals

Cluster Director Meeting

February 28, 2012Slide2

Overview

What is a Credit Invoice?

Invoices are created in EFS when goods or services are sold and payment is not collected at the time of the sale. If an invoice contains errors or goods are returned, a credit must be completed in the financial system.

Why do Credit Invoices need Approval?

Credit invoices are considered non-cash adjustments; they reduce the money owed to the University.

An Internal Audit recommendation states an approval should be required on all non-cash adjustments.

By requiring review and approval for all significant financial transactions in the financial system, the University can ensure it’s guiding principles are followed and enforced.Slide3

Credit Adjustment - Actions

Credit Only Adjustment

Credit and

Rebill

Adjustment

Chartstring

CorrectionSlide4

Credit Adjustment - Actions

Credit Only Adjustment

A credit only adjustment is created when a customer should receive a full credit and no

rebill

will be created.

An example would be if the customer received a duplicate invoice.

Note: Adjustments related to payment issues (i.e., write-offs) should be handled by AR Services and should not be credited through this process. Slide5

Credit Adjustment - Actions

Credit and

Rebill

Adjustment

Customer invoices that are in error or need to be partially credited should be credited in their entirety and

rebilled

with the corrected/updated information.

Examples would be incorrect pricing or returned/damaged merchandise.Slide6

Credit Adjustment - Actions

Chartstring

Correction

Invoices that are in error due to incorrect

Chartstrings

should be credited in their entirety and

rebilled

with the corrected

Chartstring

. This procedure should be followed regardless if the original invoice has been paid.Slide7

Credit Adjustment - ProcessSlide8
Slide9

Credit Adjustment - Entry

The Billing Specialist enters the credit invoice and assigns an approver using the Adjust Entire Bill page in EFS.Slide10

Approval Process

Once the Billing Specialist has entered the Credit Invoice and corresponding

Rebill

(if applicable) in Pending Status, an email is sent to the ApproverSlide11

Approval Process

The approver:

Retrieves the transaction

Reviews any attachments

Reviews justification on credit invoice

Reviews

rebill

if applicable

Approves the transaction Slide12

Roll-Out Strategy

AR Services

Work with Training Services to

Develop on-line Approver Training Course

Develop Approver Job Aid

Update Billing Specialist Job Aid

Update Create Bills Manual

Communicate change to Billing Specialists

Create Credit Request Form and have it added to the Forms Library

Add Credit Invoice Approver Role to EFS Access Request formSlide13

Roll-Out Strategy

Cluster Directors

Determine approver(s) in each cluster

Communicate change to Billing Specialists and Department Initiators

Approvers

Take Approver training

and complete assessment

by

April 20

th

Revised Date – April 19th

(training is scheduled to be available

04/01)

Revised Date-March 30th

Complete EFS Access Request Form to gain access to Credit Invoice Approver Role

Revised – for initial roll-out no Access Request Form is necessary, forward names to Michelle Howard at howar073@umn.eduSlide14

Who should Approve the Credit Invoice Transaction?

Recommendation:

Cluster Director should act as designated approver of the transaction within EFS, but require that the Credit/Credit

Rebill

Request Form be completed and attached. The Credit Request Form should include the departmental approver’s signature.

Rationale

This will allow the Cluster Director visibility into the number of credits and the reason for credits created within their cluster. It will help the Cluster Director assess where there may underlying problems related to invoicing.Slide15

Questions?