- Accounts Receivable
The university, through its Bond
Revenue, Sales and Service, Local Fund Activities, and
Income Funds, has cause to make sales and assess charges
to various individuals, organizations, and agencies
"outside" the university system. All sales and charges
by a university department must be made via the "Request
to Generate a Customer Invoice" form provided by
the Accounts Receivable Office or directly into the
PeopleSoft AR/Billing module if the department has access.
Direct access to this module shall be determined by
the supervisor of the Accounts Receivable Department.
The AR office will use the information on the "Request
to Generate a Customer Invoice" form sent by the
departments without access to PeopleSoft to input data
in the AR/Billing module. The AR office will also edit
and process all invoices for accounting purposes and
Direct billings by any university
department are a violation of university policies of
internal control and are in conflict with audit recommendations.
Accounts Receivable is defined as
any amount owed the university by an individual, organization,
or agency whose funds are not controlled by the university.
Accounts receivables are established by the selling
department or the department issuing the charge—not
the Accounts Receivable Office.
Departments desiring to issue university
billings for the first time must obtain clearance through
the Supervisor of Accounts Receivable. When a department
has been authorized to issue university billings, it
is assigned a three-character alpha prefix code by the
AR department. This code will appear on all invoices
followed by six numeric digits (i.e. THE000001). The
PeopleSoft AR/Billing module allows each department
to start their invoice numbering sequence as XXX000001
and will automatically assign the next number to be
- Preparing a "Request to
Generate a Customer Invoice" Form—For Departments
Who Do Not Have Direct Access To PeopleSoft
Access the website
address as stated below and then go to the Accounts Receivable section and
click on Excel worksheet macro in the “Customer Invoice” row. http://www.finfacil.niu.edu/PeopleSoft/Forms/FSForms.htm#AccForms
– Specific name of the department assessing the charge, i.e.
Telephone Number –
Telephone number of the person in the department who Accounts Receivable can
contact if questions arise on the form.
Contact Person –
Name of person who prepared the form.
Number – This number is necessary only if the department uses their own
internal control for these forms.
Bill Type – The three letters alpha code that was assigned
to the department.
Customer Number – The number
module has assigned to the customer.
If this is a new
customer you must fill out a “Request to
Add/Update a Customer Record” form before you can proceed with this form
which is located at the following website address: http://www.finfacil.niu.edu/PeopleSoft/Forms/FSForms.htm#ACCForms.
Go to the Accounts
Receivable section and click on Excel worksheet macro in the “Add Customer”
Customer Name –
The name of the person or company being billed.
Billing Address –
The address of the customer being billed.
Contact Person –
The specific individual of a company or business for the billing department to
contact regarding questions or concerns.
(Optional) – The PeopleSoft System allows an additional 255 characters to be
used in the general description of the sale.
Description – 30
characters available to be used to describe an item on the bill line. If additional space is needed for a
particular bill line, use the bill line note space.
Quantity – Indicate
the number of items being sold on this bill line.
Unit – Unit of
measurement (ie. Ea., Day, Hr.)
Unit Price – Price
of a single item being sold.
Date – Date of the sales transaction.
Fund – Indicate
the fund (ie. 29, 41, 44, or 50) to be used on this bill line.
Enter the department’s cost center/code to be used, including the two alpha
Account – Enter
the six digit revenue code.
Program – Enter
the applicable three digit numeric/alpha code, if applicable.
Bill Line Note
(Optional) – If more than 30 characters are needed to describe the item sold on
this bill, this space provides additional characters.
Signature – Signature of person authorized to execute this sale if request is
sent by mail. A signature is not
necessary if sent by email.
Preparing an Invoice Using PeopleSoft
desiring to issue external university billings through the PeopleSoft module
must obtain clearance with the Accounts Receivable Office. Each person
requiring access must attend training sessions conducted by AR staff.
a department has been authorized to bill in PeopleSoft, the following
procedures must be followed:
department will create invoices through Billing > Maintain Bills >
Standard Billing > Add a New Value.
have their own Bill Type (3 letter prefix) and Distribution Codes in the
PeopleSoft Billing setup tables. The
Billing Specialist for each department should only use their particular
When selecting a
customer to be billed, only the Grants Fiscal Administration Department is
allowed to use customer numbers starting with GFA. All other departments must use the automatic
customer numbering system starting with “1” or “0001”.
The Fund and
Organization must be the same for the Revenue Distribution and the AR Offset.
will take responsibility for the readiness of the invoice by having their own
internal approval procedure.
Full and partial
credits will be created by the Accounts Receivable Department. Please use the “Request to Generate a Customer
Invoice” form on the Web to request full and partial credits.
When the invoice
is in acceptable form, the department will set its “Bill Status” to “Pending
Receivable department will review all invoices in the “Pending Approval”
If revisions are
needed, the AR Office will set the “Bill Status” to “New” and contact the
billing department by e-mail or telephone. The department is responsible for making the correction and resetting
the “Status” to “Pending Approval”.
Invoices that are
correct are set to the “Status” of “Ready” by the AR Department.
Invoices that have
been set to “Ready” status by AR should never be modified. Contact the AR staff and have the status set
to “New”. You can then make your changes
and reset the status to “Pending”.
Proformas will be
printed by AR and sent to the billing departments. This is the copy that must be maintained by
the departments for audit purposes.
invoice distribution will be classified into two groups: 1) those that sometimes or frequently attach
additional data to their invoices and, 2) those who never have attachments.
who attach additional data to invoices, the Accounts Receivable Office will
forward all invoices to them. It will be
the department’s responsibility to match attachments, mail invoices and keep
appropriate file copies.
Receivable Office will mail all invoices for the group that never has any
attachments to the customer.
General Policy Concerning Minimum
on NIU Invoices
will not be processed if the amount is less than $5.00. Billing areas should accumulate small charges
to the same customer until they total $5.00 or more. Exceptions to this policy
may be necessary for final billings at the end of an accounting period.
Flow and Distribution
billing department uses attachments at any time on its invoices, it will be the
department’s responsibility to mail all its invoices. The department may choose
to pick up the invoices and proformas in the Accounts Receivable Office or have
them sent in the inter-office mail. However, the Accounts Receivable Office
will mail the invoices for departments that never have attachments.
Timing Guidelines for Submission of Invoices
should submit "Request to Generate an Invoice" forms or enter on-line
all charges incurred prior to month-end by no later than the 15th day of the
Timing Special rules for invoicing Student Organizations
Special rules apply to many NIU Student Organizations that do not have a FEIN to allow them to charge for services. We recommend that you request to see the copy of their approved application form that is processed by our office. The “Application for NIU Accounts Receivable Number” is completed in our office by two of the Organization’s officers. The completed form will list an Expiration Date, Organization’s Accounts Receivable Number, Organization Name, Organization Mailing Address and the two authorized officers. The Application form should indicate that the original is “On File with AR” and should be stamped in red indicating that it is a copy.
Invoice requests will not be processed for Organizations with expired authorizations. Only the two authorized officers are allowed to charge on the account. A photo ID should be presented to protect both the officer and the billing department.
“Requests to Generate a Customer Invoice” from a non-rollout department must include one of the two authorized officers to be processed by AR. Rollout departments must include one of the two authorized officers on the “Attention To” area of the address page of all invoices to be processed.