Overview of the accounts receivable system

The accounts receivable system encompasses the recording, collection and reporting of moneys owed to ANU by its debtors. The administration of debtors involves:

  • the verification and processing of applications for new debtor accounts and invoice/credit note requests, ensuring that they have been authorised and are in accordance with ANU policy and procedures;
  • monitoring of overdue debtor accounts and initiating follow-up recovery action;
  • dealing effectively and sensitively with debtors, ANU management and staff of budget and business units relating to the application of policy and the processing of debtors transactions;
  • coordinating the timely processing and despatch of invoices/credit notes and statements to debtors; and
  • compiling and preparing data required for bad debt write-off submissions, doubtful debt lists and debt collection agency referrals.

The functionality provided by the accounts receivable system and supporting administration includes:

  • funds credited to your specified ledger account at the time when the invoice is raised;
  • a standard invoicing system that facilitates the identification of payments whether by cheque or direct credit, thus improving the effectiveness of management reporting and efficiency of follow up action taken. It also allows consolidation of payment by our debtors where a number of invoices are raised to the one debtor;
  • the accounts receivable system interface with the receipting system allows on-line receipting against specific invoices and ensures that the debtor records reflects current receipting transactions;
  • periodic reports are produced and distributed to budget units detailing all amounts currently outstanding and the original amount of the invoice. This report is issued only as information and does not require you to initiate any follow up action;
  • there are various reports and enquiry functions within accounts receivable that you are able to access directly. As well as providing flexible parameters, the reports all offer a download facility enabling further analysis in Excel or Access;
  • an accounts receivable management database supports the accounts receivable system and assists in the production of regular follow up correspondence. Follow up action taken by Finance and Business Services consists of:
    • Monthly statements of outstanding invoices;
    • Reminder letter sent to the debtor when an invoice is four weeks overdue;
    • Letter of demand sent at eight weeks overdue; and
    • Once an invoice is twelve weeks overdue, submission to a debt collection agency is considered on consultation with the related Budget Unit.
  • for each debtor, you can view their "credit" history detailing all invoices raised and monies received in relation to that debtor. Debtors are classified as good, doubtful, bad to assist management in deciding whether to offer terms of credit to certain people or organisations.