Accounts Receivable 1 - UCLA · What is Accounts Receivable? 2 Any outstanding payment on a sponsored project constitutes a “receivable” on that award In other words, an award

1Accounts ReceivableAccounts Receivable

Extramural Fund Management

2What is Accounts Receivable?What is Accounts Receivable?

Any outstanding payment on a sponsored project constitutes a “receivable” on that award

In other words, an award is awaiting “receipt” of payment

The University has $868 million in award dollars60% is paid through the Letter of Credit

Letter of Credit is essentially a line of credit between the University and the federal government. EFM “draws-down”funds several times a month in accordance with a complicated formula

40% is potential for accounts receivable


During the cycle of an award expenditures are made and payments are received from the various sponsors

EFM is responsible for the billing and payment follow-up to ensure payment is received for all costs incurred


EFM needs:

Departments to read the terms and conditions of the award!

Departments to manage the award through-out the entire life cycle.

reconcile ledgers monthly

Ensure that technical, progress and other deliverables are met


Payments received are either recorded to Revenue or Accounts Receivable

Non-invoiced payments are recorded directly to revenue

Invoiced payments are recorded to accounts receivable

6Here is the list of Revenue and Receivable Here is the list of Revenue and Receivable Accounts by Sponsor and Award TypeAccounts by Sponsor and Award Type

112679257000Private Contracts and Grants

112678258000Private Contracts and Grants

112664220950Local governments

111505221100Federal Grants

111500225000Federal Contracts

111200218200State

Receivable AccountRevenue AccountSponsor

7Financial System Applications MenuFinancial System Applications Menu

8What the financial revenue column What the financial revenue column for a new award looks like in the for a new award looks like in the Financial SystemFinancial System

Nothing shows in the Financial (revenue) column because there has been no billing yet.

Nothing shows in the Financial (revenue) column because there has been no billing yet.

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What the Financial System looks like when EFM submits a request for payment.

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Invoice SampleInvoice Sample

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While the amount of invoice shows in the Financial (revenue) column, it doesn’t mean UCLA has received payment. We must go to the general ledger and look at the details under the A/R account – the account that begins with a “1.” To access the General Ledger, we can click account 218200…

Click here

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Change the Account number to the A/R account, which is 111200 for the State, and click “Get Report” button

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Now click the “Click here to go to Detail General Ledger for account transactions”link

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Adjust your dates to the invoice date. In this case it is January 2009 to May 2009 and click the “Get Report” button.

16Here is the invoiced amount, for which payment has not been received (payments show in brackets). Balance column shows pending payment from sponsor.

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What the Financial System looks like when What the Financial System looks like when EFM submits requests for payment on an EFM submits requests for payment on an award and there remains a balanceaward and there remains a balance

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Here we see the total amount of award is 191,000, and we have invoiced so far for a total $50,695.48.

We need to check the A/R account to see what payments have been received. We first access the

general ledger by clicking on account “218200”

Click here

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Change the Account number to the A/R account, which is 111200 for the State, and click “Get Report” button

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Adjust your dates. In this case we are going to change the dates to May 2008 to May 2009 and click the “Get Report” button.

23Here we see several invoices have been submitted (“PVTINV”) in Description column) and several payments received (indicated in brackets in the amount column.) The balance the sponsor owes us is $24,521.23.

A/R Balance

Non-bracket items are A/R Set-ups

*$50,695.48

24What Money received without a What Money received without a request from EFM looks like in the request from EFM looks like in the Financial SystemFinancial System

If the sponsor submits a payment without an invoice, it is credited directly to the revenue account of the fund (financial column) In this case, the amount is the Financial column DOES represent cash received

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$60.000 shows in the Financial (revenue)

column because we’ve received payment.

Let’s click this revenue account to gain access to the Detailed General Ledger…

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Adjust your dates. In this case we are going to change the dates to September 2008 to May 2009 and click the “Get Report” button.

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We see that two payments for $30,000 each have been received.

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Like the fund summary report, you can only view one month at a time in the Contracts and Grants Accounts Receivable report. If you want to view more than one month, you must go through the Detail General Ledger and type in the account number that begins with “1”

31How do I Search A/R By Sponsor?How do I Search A/R By Sponsor?

From the A/R report under CG Reports tab, select “Sponsor Code”

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Type in Sponsor code. If you do not know the code, you can search by

typing Sponsor name the “find” box.Here we want to know the receivables

for Jet Propulsion Laboratory as of May, 2009. Click the “Get Report”

button

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Results were two printed pages…

34How do I Search A/R By PI?How do I Search A/R By PI?

From the A/R report under CG Reports tab, select “PI”

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Type in PI code. If you do not know the code, you can search by typing PI’s last

name, and selecting result from the drop down menu. Here we want to

know the receivables for Dr. Michael Lu as of May, 2009. Choose a time period.

Click the “Get Report” button

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Dr. Lu has $91,316.95 outstanding in receivables.

37How do I Search A/R by Department Code?How do I Search A/R by Department Code?

From the A/R report under CG Reports tab, select “Department”

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Type in Department code. Here we want to know the receivables for NPI,

which is department code 2000. Choose a time period. Click the “Get

Report” button

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Results were five printed pages…

40How do I search the A/R by an How do I search the A/R by an Account Number?Account Number?

From the Account Summary report under the SUMMARY tab, select “Account”

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Type in the code. Here we type in the Receivable account for the State. Click

the “Get Report” button

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Results were seven printed pages…

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How do I Search the A/R for a particular How do I Search the A/R for a particular fund for more than one month?fund for more than one month?

We go to the Detail tab, and look through the Detail General Ledger…

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Type in the fund number and the A/R account, which is 112679 – Private

Grants and the time period. Click the “Get Report” button

Fund

Time Period

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Results were five printed pages…

46Accounts Receivable Report by Department is Accounts Receivable Report by Department is also available from the Summary Tabalso available from the Summary Tab

47What Happens When A Sponsor What Happens When A Sponsor DoesnDoesn’’t Pay?t Pay?

In some instances, a sponsor reneges on their contractual agreement and defaults on payment even though payment requests were timely and deliverables were met; the department is liable for these expenses

The DEPARTMENT is responsible?

The DEPARTMENT is responsible?

48Reasons For Sponsor DefaultReasons For Sponsor Default

Out of businessSponsor did not include UCLA expenses on report to prime (in cases when UCLA is the subrecipient)Carry-forward issuesCash flow issues

49Accounts Receivable TeamAccounts Receivable Team

Maurice Taylor – Supervisor, ext. 42843Olga Sanders – Prin. Analyst, ext. 42837Kaaren Davis – Senior Analyst, ext. 46988Shelia Oatis – Admin Analyst, ext. 63204

Accounts Receivable 1 - UCLA · What is Accounts Receivable? 2 Any outstanding payment on a sponsored project constitutes a “receivable” on that award In other words, an award

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