University of Illinois System
Policies & Procedures

AR Resources

Benefits of Using Banner Accounts Receivable (AR)

All units must comply with all state, University of Illinois System, and accounting requirements for receivables. Using 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 your billing statements.
    • After you have sent the invoice and assessed the charge in Banner AR, University Bursar sends the billing statement on the first business day of the month. Payment is due on the 28th.
    • 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 your customer accounts. Your 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 6 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 you in accurately projecting your unit's actual income.

UAFR handles state-required reporting and most reconciliation for your unit.

  1. UAFR extracts data directly from Banner AR so you do not have to:
    • Submit your unit's quarterly receivable and reconciliation information.
    • Report your 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

Your unit will be responsible with complying with all applicable State laws as outlined in Section 5 Managing Receivables. 

Monthly Reconcile Your Unit's Receivables

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

Increased Reporting

if yourunit does not use Banner AR, you will be required to submit quarterly receivable and reconciliation information to UAFR as well as reporting your reeivables on the self-supporting funds Year-End Fact Sheet.

Allowance Calculation

Your unit will be responsible to calculate an 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. 

Additional Resources

5.1 Managing Receivables
Definition of Illinois State Offset System in 4.1 Unit Activities for Payroll Processing - Payroll Deductions

Last Updated: July 16, 2021 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 2010