The Accounts Receivable (AR) module of UFS is used for customer record creation and maintenance, raising sales invoices, credit memos and debit memos to external and internal customers. These memos are commonly referred to as a credit or debit notes, but in UFS, they are called memos.
On this page:
- Institution responsibilities and Financial Regulations
- Self-billed invoices
- Supplier portals
- Customer refunds
- Cancellations
- Month-end procedures for invoicing
- Other sales related documentation
- Receiving payment
Institution responsibilities and Financial Regulations
In accordance with the Financial Regulations8 , invoices must be raised in the name of the University of Cambridge and show the University’s VAT number. Invoices must be raised through UFS unless prior written consent is given by the Director of Finance. Invoices should also be raised in sterling for settlement in sterling. Where, by exception, invoices are raised in a currency other than sterling, any foreign exchange risk lies with the institution. Additionally, invoices must be raised and dispatched promptly (not more than one month after the transaction to which it relates), are properly recorded and processed and must comply with the VAT Regulations.
More information:
Self-billed invoices
Occasionally an institution may make a sale to a customer who operates a self-billing process. This is where the customer generates a sales invoice on our behalf and is typically followed up with a payment. It is common in the agricultural and publishing sectors. The payment must be accounted for in CUFS.
For example, Cambridge University Farm sell wheat to a customer. The customer receives a delivery of wheat from the farm, which is weighed, and a sale price calculated. The customer issues a self-billing invoice and generates the payment to the Farm. The Farm identifies and receipts the payment in CUFS.
The self-billing invoice must include invoice number, invoice date, a detailed description of goods or services, quantities, prices, and any applicable VAT.
There is no need to issue a sales invoice to the customer. However, a self-billing agreement must be in place.
Any applicable VAT needs to be accounted for correctly. Therefore, before entering into a self-billing agreement with a customer, contact the VAT team for advice.
For further guidance contact the AR helpdesk
Supplier portals
A supplier portal is an integrated online platform, shared by businesses and their vendors, used for submitting documents which can include contracts, electronic purchase orders, invoices for payment, and related information.
Any request to register to a customer’s nominated supplier portal should be referred to Credit Control. Customers should have a single supplier set up for the University of Cambridge rather than separate supplier accounts for individual institutions. We will often already be registered with the portal which will speed up your connection to the customer. Credit Control will support any registration activities required and the institution will then be given the appropriate access.
Customer refunds
It is the responsibility of the institution to ensure checks have been made to substantiate customer claims before refunding. Written authorisation from Head of Institution or delegated authority should be received and retained for audit purposes.
Institutions may charge an administration fee to the customer if the University is not at fault. The fee can be deducted from the refunded value if the customer was made aware of the possibility of the fee prior to the initial payment.
Refunds for online sales
Payments received by credit or debit card must be refunded back to the same card wherever possible. Further guidance is provided in FPM Chapter 7, Cash and Banking Procedures, Credit and debit card receipts: Refunds.
Refunds for PDQ sales
Further guidance is provided in FPM Chapter 7, Cash and Banking Procedures, Credit and debit card receipts: Refunds.
Cancellations
The University’s Standard Terms and Conditions separately outline the charges that the buyer is liable to if they cancel the order for the goods and services before the goods are delivered or the services performed.9
9 Standard Terms and Conditions Clause 7.1
Month-end procedures for invoicing
It is recommended the Incomplete Invoices report is run regularly, but the following procedures must be completed by month-end:
- Run the Incomplete Invoices Report which lists all transactions that have not been completed and require further action (i.e., complete, print as PDF, and send to customer; no longer required - need to be voided)
- Ensure all sales transactions are printed and sent to customers
| For further information on Accounts Receivable month-end procedures see Chapter 10 of the Financial Procedures Manual |
Other sales related documentation
Customer receipts
The UFS system is not capable of producing receipts for customers. Therefore, if a customer requests a receipt, you can provide written confirmation of receipt by email, pre-printed duplicate receipt pad or printed document.
Reprinting the invoice after the payment has been applied to the invoice in UFS is another option. The invoice will now display a watermark entitled PAID.
Delivery/packing notes
These cannot be produced in UFS. You will need to create manually if required in consultation with the Head of Accounting Services.
Pro-forma invoices
Pro-forma invoices must not be issued by the University.
Receiving payment
As institutions may not receive notification from the customer prior to the payment appearing in the bank account, you must review the twice weekly sterling, dollar and euro electronic payment lists distributed by the Cash Management (CM) Team. These lists itemise direct payments made into the University’s bank accounts which have yet to be reconciled with invoices.
Some customers may send a remittance advice which detail the payment amount, date and description of the payment which can be cross-referenced to these lists.
Claim any relevant receipts on UFS by completing a cash receipt (Refer Training Guidance on receipting) and inform the CM Team of the Receipt Batch/Receipt reference. This will ensure the accurate reporting of institution and University-wide debt position.
When reviewing these lists, consider that the amount on the lists may not be exactly the invoice value. This may be due to:
- bank charges
- transposition errors
- currency conversion
- a single payment covering multiple invoices
At the end of each month Credit Control will automatically write off any balance less than £20.00 remaining against any invoice that has been receipted. This will clear any low value shortfalls such as bank charges. Some exclusions apply and project related invoices are not part of this process.
Although now discouraged, on the rare occasions when cash or cheque payments are received, they must be receipted in UFS at the first opportunity, kept secure and banked.
| To receive the sterling, dollar, and euro electronic payment lists, please contact the Cash Management Team |
8Financial Regulations 2012, Income and Expenditure, 12.1
Latest version 16 April 2024