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
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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 - ProcessSlide8Slide9
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?