Prerequisites
Prior to reading the instructions on the Accounts Receivable Aging and Detail Report, it is beneficial to review the following sections of the IU Accounting Standards Book to gain foundational information along with report requirements and best practices:
- Accounting Fundamentals Section
- Chart of Accounts and General Ledger Section
- Internal Controls Section
- Account Reconciliation Section
Overview
The Accounts Receivable (AR) Aging and Detail Report was created as a tool for IU departmental users to track and manage their outstanding accounts receivable balances. The balances reflected on these reports are limited to those transactions that were initiated within the KFS AR module and are recorded in object code 8118 in the general ledger. The primary purpose of the AR Aging report is to help units identify which customers have unpaid balances, how much they owe, and how long the balances have been outstanding. The report output allows users to review the units aged accounts receivable balances with the report displaying detail by organization, by account, and by customer. Units will also be able to review their detailed report which lists invoices issued and organizes them by how long they have been outstanding.
Other uses of this report include:
- Managing cash flow, identifying overdue payments, estimating bad debt expenses, ensuring financial integrity, and maintaining healthy customer relationships.
- Gauging the financial health and reliability of customers as well as acting as a useful tool to revise the allowance for doubtful accounts.
- Assess the timeliness of customer payments and determine if additional credit and/or collection efforts are needed to address issues.
- This report can be used in conjunction with the Accounts Receivable Checklist as a measure to ensure accuracy and completeness of 8118 balances, reduce the risk of errors or fraud in the accounts receivable process, improve collections and cash flow, and maintain the integrity of financial reporting.
How the Accounts Receivable Aging and Detail Report Works
The Accounts Receivable Aging and Detail Report is used to view the aging of object code 8118 accounts receivable balances displayed in three different tabs. The balances are listed by organization, by account, and by customer. By default, all three tabs are displayed in the output, however, the user has the option to choose only a specific tab to be shown. Within each tab, balances are viewed in columns detailing original invoice amount, open invoice amount and categorizing the open amount by length of time outstanding. The number of days outstanding is calculated by determining the number of days between the approval date of an invoice and the report run date. Using the outstanding calculation, invoices are divided into different time periods, such as 0-30 days, 31-60 days, 61-90 days, etc. This allows units to see which customers have been slow to pay and how much is owed in total. By tracking days outstanding, units can better manage their cash flow, take proactive steps to collect overdue payments, and ensure the accuracy and completeness of the 8118 balances. This information can also be useful in identifying customers who are consistently slow to pay and may require additional follow-up to ensure timely payment in the future and adjustment to any allowance for doubtful accounts. Additionally, to examine the financial details of the report more thoroughly, users have the option to select the "Include Hyperlinks" parameter when running the report. Enabling this feature allows users to drill down into specific balances by simply clicking on them. This drilling down process plays a vital role in acquiring in-depth financial information. It involves delving deeper into the report to gain insights into the accounts receivable balances and provides a comprehensive breakdown of the attributes that constitute those balances. These attributes include the processing chart and organization, financial document numbers, days past due, and document descriptions. Within the detailed report, users can further drill down on the financial document number, which will open the corresponding invoice document in KFS if they have KFS AR access. This level of analysis is invaluable in identifying the specific customers or accounts that contribute the most to outstanding balances. By leveraging this drilling down capability, units can make well-informed decisions regarding collections strategies, credit policies, and potential write-offs. Ultimately, this enhances their accounts receivable management and overall financial health.
The ability to drill down into the report not only provides a comprehensive view of the accounts receivable balances but also empowers units to take proactive measures in optimizing their financial performance.
The Accounts Receivable Aging and Detail Report can be located at the top of this page – refer to the top right blue button labeled “Go to Report” which will automatically redirect users to the report within the Controller’s Office Reporting Tools.
In addition, the report can be found in One.IU. To find the report, search for “Controller’s Office Reporting Tools” in the search bar and select Controller’s Office Reporting Tools (Report Center) under Tasks. Mark this task as a favorite by clicking the heart icon located at the bottom right corner of the tile. Click on the tile.
Once in the Controller’s Office Reporting Tools, users will see all available reporting tiles. Navigate to the Assets folder. New tiles open, which display all the available Asset reports. Select Accounts Receivable Aging and Detail Report.
Running the Report
Define the search parameters to return results relevant to your organization or to a specific account. The search parameters available in the Accounts Receivable Aging and Detail Report are divided into three parameter types: chart of account report parameters, report specific parameters and display parameters.
If there are questions related to running the report, requirements or reviewing results, please contact your (RC) fiscal officer or campus office. Each campus may have individual specific requirements related to Accounts Receivable Aging and Detail Report, be sure to reach out to the related campus office or fiscal officer prior to quarter closings.
General Notes: Do not include any special characters other than approved wildcards in any of the below parameters. Additionally, do not run reports by campus as it will take up valuable computing services.
Users can enter the fiscal year, fiscal period, chart code, responsibility center (RC), organization code, account, and sub-account for their respective organization to narrow their report results. If unsure, several of the parameters have a valid values function which displays the available codes and corresponding descriptions.
| Parameter | Description |
|---|---|
| As Of Date | Used to limit report output to Accounts Receivable balances as of a specified date. (Note: any date input before 4/20/2023 will result in “no results” found.) |
| Acct Line Chart of Accounts | Used to limit report to one or more specific accounting line chart of accounts. This is the chart code that is on the transaction line, not the billing or processing chart code. For assistance determining your chart code, refer to KFS Chart Lookup. |
| Acct Line Organization Code | Used to limit report to a specific accounting line organization code . This is the organization code that is on the transaction line, not the billing or processing organization code. Users are encouraged to use this parameter in conjunction with a chart of accounts code. |
| Billing Chart of Accounts | Used to limit report to one or more specific billing chart of accounts. This is the chart code that the transactions are billed by, not the accounting or processing chart code. For assistance determining your chart code, refer to KFS Chart Lookup. |
| Billing Organization Code | Used to limit report to one or more specific billing organization codes. This is the organization code that the transactions are billed by, not the accounting or processing organization code. Users are encouraged to use this parameter in conjunction with a chart of accounts code. |
| Processing Chart of Accounts | Used to limit the report to one or more specific processing chart of accounts. This chart code uniquely identifies the single chart that is associated with the processing of the customer invoice. Currently, there are two options for this field, UA, and IN. |
| Processing Organization Code | Used to limit the report to a specific processing organization code. In association with the Processing Chart Code, this value references the processing organization for this invoice. Currently, there are four options for this field. If selecting processing chart code UA, options for org code are AR, ARCG, and CTIN. If using processing chart code IN, the only org code available is ACCT. |
| Responsibility Center Code | Used to limit to a specific RC. Users are encouraged to use this parameter in conjunction with a chart of accounts code. For assistance determining your RC code, refer to KFS RC Lookup. |
| Account Number | Used to limit report to one or more specific account(s). |
| Sub-Account Number | Used to limit report to one or more specific sub-account(s). |
| Customer Number | Used to limit the report to one or more specific customer number(s). |
Report specific parameters are parameters specific to the generation of the report.
| Parameter | Description |
|---|---|
| Report Output | Used to limit report to specific tab views; four options:
|
Display parameters are parameters that define and restrict the visual presentation of the Accounts Receivable Aging Report. They are found on the lower part of the parameters.
| Parameter | Description |
|---|---|
| Exclude Processing Chart/Org Detail? | Check/Uncheck – excludes the processing chart and processing organization columns within the balance detail of the drilldown. |
| Exclude Closed Invoices? | Check/Uncheck – excludes all invoices that are closed. |
| Include Hyperlinks | Check/Uncheck –includes links in the output allowing the user the ability to drill down for additional detail. Note: When using this parameter, user may need to click the “Enable Editing” button in the Excel report output in order to display dollar amounts. |
| Select the Output Format | Report will be generated in Excel version only. |
| Select the Output Destination | The user has the option to choose where they want their report to go once it is ready. The user can either Wait for it to pop up on the screen or have it sent to their Email. If the user selects email output destination, an email will be sent with the link to the selected output format. |
Click Save Parameter Settings to save your parameters for future use of this report. For instructions on how to save settings, review the Save Parameter Settings document on the Controller’s Office Reporting Tools page.