Embedded Files
Process Group/Policy Details
Subject: Accounts Receivable
Process Group: Configuration
Title of Policy: AR_Configuration
Effective Date: 07/01/2014
Approved/Revision Date: 07/01/2014
Approved by: State Controller
In This Policy
Process Group Description
The Configuration process group includes all the related tables that are necessary for the creation of customer and billing profiles. Both the customer and billing profiles need to be established in CORE before receivables and invoices can be created for a customer.
Rationale or background to policy:
CORE provides flexibility for setting up and maintaining profiles related to customers and the related billings for the accounts receivable process. In order to ensure that these profiles are properly updated and maintained, a policy is required.
Policy Statement:
AR.PO.01 AR_Configuration
The Office of the State Controller shall maintain the billing profiles and associated tables that feed into the billing profiles, while the departments will be responsible for the creation and maintenance of customer profiles.
Procedures:
AR.PR.01.1 AR_Create Customer Billing Profile
Customized billing profiles for each customer ensure that proper billing is generated on schedule. A single billing profile can be assigned to one or many customers. Billing profiles allow the user to determine the following items related to each customer:
Billing Type: Whether a customer receives an invoice, a statement, both, or no billing at all.
Invoice Instructions: What messages are included on the invoice, stating the terms of payment.
Statement Options: When statements should be generated.
Remit to Information: Where payments should be sent.
Collection Cycle: When customers are notified of overdue bills through dunning messages or collection letters.
Finance Charges: How penalties should be applied, using a flat fee or interest.
Payment Plan Options: When payment plan agreements, reminders, cancellations and completion notifications should be generated.
A generic statewide billing profile (00004) has been configured in CORE. The generic billing profile is available to all departments. This profile is configured for “no billing” and therefore, will not send invoices, statements, dunning messages, or collection letters to customers that are linked to this billing profile.
To create a new billing profile, a department shall submit a Billing Profile Creation form to the Office of the State Controller with all necessary fields populated. With this information, the OSC shall complete the BPRO table, the primary table for billing and collections setup.
The generic statewide collection cycle (CL001) is set up in accordance with the State of Colorado’s Accounts Receivable Collections Administrative Rule, which requires that departments provide a final invoice advising a debtor that their account is subject to final department determination and will be referred to collections if not paid by the due date. The due date shall be 30 days from the invoice date unless a department obtains OSC approval of an alternative due date.
Departments shall refer all debts to the State Controller for collection when the debt is 30 days past due, unless a department obtains a waiver from the OSC. When a department selects CL001 as its collection cycle, the system will automatically include the following information on the invoice in accordance with the following time frames:
1 day past due: Dunning message is included on invoice stating that it is the customer’s second notice.
20 days past due: Collection information is included on the invoice, giving the customer ten days to make payment before the account is referred to collections.
Waiver Process: To request the set-up of a unique collection cycle, a department shall include the collection cycle information when completing the Billing Profile Creation form and submit it to the Office of the State Controller and attach a copy of the waiver or exception. A waiver is issued by the OSC and exemptions are statutory. Without proper documentation to support the request, a department shall only be allowed to use CL001 as its collection cycle option. If the OSC approves a department's request, the OSC shall create a new billing profile with the requested collection cycle.
AR.PR.01.2 AR_Modify Customer Billing Profile
To modify a currently existing billing profile, a department shall submit a Billing Profile Change form to the Office of the State Controller. The form shall include the billing profile ID for the profile that is being modified, along with the updated information for all fields that require modification. The OSC shall review the form, and if acceptable, modify the billing profile.
AR.PR.01.3 AR_Create Customer Profile – Single Profile
Departments shall create customer profiles through the CACT table. This table is used to establish valid combinations of customer codes and billing profiles, and defines the particular billing data for customers. Before populating the CACT, a department shall ensure that the customer code and billing profile are both configured as follows:
Customer Code – To ensure that the customer code is properly configured, a department first needs to identify if there is a VCUST record in the VCUST table. If not, the department shall initiate a VCC transaction (see procedures for VCC transactions in VCUST.PO.01 and VCUST.PO.03). If there is an existing VCUST record, the department shall ensure that the customer status is active, the customer approval status is complete, and the customer has a valid billing address. These three fields are displayed within the VCUST record. If the three prior conditions are not met, the department shall request a modification to the vendor file (for more information on VCUST modifications, see VCUST.PO.03).
Billing Profile – If a billing profile is not configured, see AR.PR.01.1 above.
Departments interfacing with the accounts receivable module using the RE1 transaction shall use a miscellaneous customer code. A miscellaneous customer does not require a billing profile within the CACT; therefore, when a department completes the CACT for a miscellaneous customer, the billing profile field is not required. For more information on RE1 transactions, see AR.PR.02.2.
Within the CACT, a department shall not complete the collection cycle field. The State of Colorado determined that the collection cycles will already be configured within the billing profiles that are set up for each department. See AR.PR.01.1 for more information on the set up of billing profiles and collection cycles.
AR.PR.01.4 AR_Create Customer Profile – Multiple Profile
Because customers may be billed by multiple departments and units, or may have different billing needs based on various types of transactions, CORE allows the option of having multiple customer profiles for the same customer. A department shall create customer profiles in the CACT based on the procedures included in AR.PR.01.3. A department may create an additional profile for a customer if the customer and billing profile combination does not currently exist within the CACT.
AR.PR.01.5 AR_Modify Customer Profile
A department modifies customer profiles in the CACT. See AR.PR.01.3 for the fields that are included in the CACT.
Page updated
Report abuse