Finance Process Documents – Accounts Receivable 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.
Transcript
Finance Process Documents – Accounts Receivable
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.
Finance Process Documents – Accounts Receivable
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
PROCEDURE
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.
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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
PROCEDURE
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
PROCEDURE
Accounts Receivable Administrator create and maintain customer setup detail on Agresso.
AR01-05 Sales Invoicing Agresso
PROCEDURE
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.
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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
- Query database is updated with query types and information
Finance Process Documents – Accounts Receivable
PD-AR-002 Finance Department Page 5 of 11 Version 2.0
Accounts Receivable Process Owner: Sean Ryan
Version 2 Date: 5th
January 2015
AR01 - Direct Credit Transfers Page: 1 of 7
Transaction Source Accounts Receivable Output
Advice note from Ulster BankCheck 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 AgressoReceipt 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
AgressoReceipt of Payments
posted in Financial
Statements
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