Accounts Receivable Resources

Benefits of Using Banner Accounts Receivable (Banner AR)

All units must comply with all state, University of Illinois System, and accounting requirements for receivables. Using Banner Accounts Receivable (Banner AR) allows the department to benefit from University Bursar and University Accounting and Financial Reporting (UAFR) ensuring compliance with federal, state, and University receivables requirements.

University Bursar handles the entire billing, payment, and collection process for your unit.

1. University Bursar sends units their billing statements.
   • After the unit has sent the invoice and assessed the charge in Banner AR, University Bursar sends the billing statement on the second business day of the month. Payment is due on the 28th day of the month.
   • On the first business day of the following month, another billing statement is sent showing the new balance with all new charges, payments, or late charges. A bill is sent each month until the balance is zero.
2. University Bursar receives, verifies, and applies all payments to units’ customer accounts. Units’ customers have the following payment options:
   • eCheck or credit card
   • Checks to the lockbox address on their bill or to University Bursar Cashier Operations at Urbana
   • Wire transfer
3. University Bursar performs all collection activity:
   • Assesses monthly late charges on delinquent accounts
   • Conducts collection activity on delinquent accounts
   • Places receivable balances of $500 or more with the Illinois Comptroller's State Offset System
   • Places delinquent accounts with external collection agencies after six months
   • Writes off uncollectible accounts
4. University Bursar resolves all credit balances in Banner AR.
5. University Bursar estimates an allowance for uncollectible receivables and records it in the general ledger. This aids units in accurately projecting the unit's actual income.

UAFR handles state-required reporting and most reconciliation for units.

1. UAFR extracts data directly from Banner AR so units do not have to:
   • Submit the unit's quarterly receivable and reconciliation information.
   • Report the unit’s receivables on the self-supporting funds Year-End Fact Sheet.
2. UAFR performs a daily reconciliation of the Banner AR system to the Banner General Ledger. This identifies problems that may affect unit funds. Units that do not use Banner AR have to perform this reconciliation themselves. Units that use Banner AR only have to perform a review of their AR detail.

Disadvantage of not using Banner AR

Subject to State Regulations

Units will be responsible for complying with all applicable State laws as outlined in 5.1 Managing Receivables.

Reconcile Unit’s Receivables Monthly

If a unit does not use Banner AR, it is recommended units reconcile their receivable systems to the Banner General Ledger each month. Doing this regularly allows units to identify and fix problems quickly, which ensures accurate financial reporting.

Increased Reporting

If a unit does not use Banner AR, that unit will be required to submit quarterly receivable and reconciliation information to UAFR and report receivables on the self-supporting funds Year-End Fact Sheet.

Allowance Calculation

Units will be responsible for calculating the allowance for uncollectible accounts and record it in the Banner General Ledger annually at fiscal year-end following the Allowance for Uncollectible Accounts Receivables instructions.