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Business and Financial Policies and Procedures

Benefits of Using Banner AR

University Student Financial Services and Cashier Operations (USFSCO) and University Accounting and Financial Reporting (UAFR) ensure compliance with federal, state, and University receivables requirements.

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

  1. USFSCO sends your billing statements.
  2. After you have sent the invoice and assessed the charge in Banner AR, USFSCO 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.
  3. USFSCO 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 USFSCO Cashier Operations at Urbana
    • Wire transfer
  4. USFSCO 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
  5. USFSCO resolves all credit balances in Banner AR.
  6. USFSCO 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.

Additional Resources

Policy for Managing Receivables
Definition of Illinois State Offset System in Payroll Deductions

Last Updated: August 1, 2012 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 2010

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