Procedure #3077.1, Rev.: 7.7.25 (Effective July 7, 2025)
Related Policy: UW-3077 Non-Sponsored Centralized Accounts Receivable Policy
Functional Owner: Director of Financial Information Management
Contact: Supervisor Central AR for Non-Sponsored Billing, (608) 890-1328, uwmsnar@bussvc.wisc.edu
Contents
I. Procedure statement
UW–Madison Non-Sponsored AR and Billing utilizes the shared customer file for UW System that is managed in collaboration by the Division of Business Services (DoBS) and UW System Shared Services. Departments can request new external customers by following the Create Customer Profile job aid or submitting the Submit Customer Inbound EIB.
Departments will upload invoices to Workday using a shared customer file. Invoices will be sent to the customer through an automated nightly process. The Division of Business Services will process all transactions related to the invoices from that point.
Invoices can be entered as either one-time or installment. Payment terms generally will be Net 30, unless an exception has been approved by DoBS.
II. Procedure
Shared Customer
Departments can request new external customers by submitting the Customer EIB. Customers can have multiple contacts and locations. Modifications to existing customer information including additional contacts or locations should be requested through the uwmsnar@bussvc.wisc.edu mailbox. DoBS will review each customer request to ensure compliance with export control lists such as OFAC.
The following steps represent the overall process for requesting new customers:
- Follow instructions on the Create Customer Profile job aid or upload the Submit Customer Inbound EIB.
- If the customer is already set up but a different contact or location is needed, follow the instructions on the Edit Customer Contact job aid, or upload the Put Customer Contact Inbound Template EIB.
- DoBS will review the customer information and ensure the customer is not on any export control lists such as OFAC.
- DoBS will complete or send back the task in Workday as needed.
Creating a Bill
Bills can be entered as either one-time or installment. Payment terms will be Net 30, unless an exception has been approved by DoBS.
The following steps represent the overall process for creating a bill:
- Follow the Create Customer Invoice Event job aid or upload the Submit Customer Invoice Inbound EIB.
The following journal entries are a sample of what will post when the bills are generated:
External customer:
Debit: Selling Department Accounts Receivable (#6200) XXXX
Credit: Selling Department Revenue XXXX
Cancellation or Adjustment of an invoice
Adjustments and cancellations need to include explanation for the adjustment. This procedure should not be used to write off a debt. For instructions on how to write off a debt, please refer to Write-off and Collection procedure.
The following steps represent the overall process for requesting a cancelation or adjustment of an invoice:
- Follow the job aid (job aids being created) instructions to create a credit invoice or upload the Submit Customer Invoice Adjustment Inbound Template EIB
- Follow the job aid (job aids being created) instructions to create a credit invoice and rebill a new invoice
- The credit invoice or rebilled invoice will route for approval through Workday. Once the task has been fully approved, the transaction will post to the customer account and the original invoice will be zeroed out.
The following journal entries are samples of what will post after a cancellation or adjustment is processed:
External customer:
Debit: Selling Department Revenue XXXX
Credit: Selling Department Accounts Receivable XXXX
Write off and Collection
(Non-Sponsored receivable balances will be managed centrally by the Division of Business Services.)
Once an invoice is generated the customer will receive a monthly statement. If payment is not received, the customer will receive dunning letters each month after the due date. Once the invoice reaches 90 days past due, write offs and collection activities will be managed centrally by the Division of Business Services (DoBS) in collaboration with UW–Madison divisions and departments. Write off and collection activities need to be processed timely to ensure responsible stewardship of UW–Madison resources.
The following steps represent the overall process for collection efforts:
- Statements will be sent for all outstanding invoices regardless of the due date on or around the 15th of the month.
- Dunning letters (reminder notices) will be issued by DoBS monthly on or around the 15th. Dunning letters will begin after 30 days past due and will continue to be sent until the debt is cleared.
- At 90 days, DoBS will reach out to the billing department to discuss collections. A decision needs to be made at that time if the invoice should be sent to a collection agency, the state of Wisconsin Department of Revenue or written off. If the department is working with the customer on payment, a note can be placed on the invoice in Workday providing details on the expected date of resolution.
The following steps represent the overall process for requesting a write-off:
- Write-off transactions are initiated through workflow in SFS. Follow the Bad Debt Write off job aid.
- Write-offs over $1,000 require Dean or Director and DoBS approval.
- Write-offs must include an explanation.
The following journal entry is a sample of what will post after a write off has been processed:
Debit: Selling Department contra-revenue account (#9312) XXXX
Credit: Selling Department accounts receivable account (#6200) XXXX
Declined Payment
To handle customer payments that have been declined for any reason including insufficient funds, closed bank accounts, etc.
The following steps represent the overall process for a declined payment:
- Notification received that a credit card or check payment has been declined.
- Business Services will reverse the payment in SFS and will reinstate the debt outstanding.
- Business Services will apply an NSF fee of $25 to the customer account for the declined payment.
- The customer will receive an updated invoice reflecting the additional fee.
- The NSF fee will be used to offset the bank fees UWMSN incurs. The NSF fee will not be distributed to the department.
The following journal entries are samples of what will post when a declined payment is posted:
Reverse the payment:
Debit: Selling Departments Accounts Receivable $500.00
Credit: Central funding string for bank transactions $500.00
Add the NSF fee:
Debit: Selling Departments Accounts Receivable $25.00
Credit: Central funding string for bank fee transactions $25.00
Refunding a Payment
Refunding a payment is specifically for transactions that have been processed through centralized Accounts Receivable. Refunds may become necessary as a result of duplicate or overpayments made by customers or adjustments and cancellations of invoices that result in overpayments.
The following steps represent the overall process for requesting a refund:
- Refunds can be requested for either a payment on account or a credit invoice adjustment
- Any duplicate payments received by customers will be placed on account for the customer. DoBS will work collaboratively with departments to determine if the payment needs to be refunded or can be applied to other open invoices.
- Follow the Request Customer Refund job aid.
- DoBS will complete the task once all approvals are done and the task is sent to DoBS. DoBS may send the task back if additional information is needed.
The following journal entry is a sample of what will post when a payment is refunded:
Debit: Selling Department Accounts Receivable (#6200) XXXX
Credit: Central funding string for payments XXXX
III. Related references
- UW-Madison Policy 3077 Non-Sponsored Centralized Accounts Receivable
- Universities of Wisconsin Workday Job Aids (Customer Accounts)
IV. Revisions
| Procedure Number | 3077.1 |
| Date Approved | July 7, 2025 |
| Revision Dates | Jan. 19, 2021 – Procedure number updated from 100.1 to 3077.1 in new numbering system. July 7, 2025 – Updated to combine 3077.1-6 base; changes for Workday. |