Process

Learn more about the process of managing customer receivables by browsing the sections below.

Once a customer has an approved contract in GMS, there are multiple ways to generate an invoice. For creation of single invoices, we recommend:

  1. Finding the customer record by searching for the Customer Name or Customer Number, and then clicking on the “Revenue” menu on the left.
  2. On the customer record, clicking on the “Invoices and Payments” tab, and then the “Invoices” sub-tab. This will display all invoices already created (and their status) and offer a “Create Invoice” button.

See additionally information about invoicing on our FAQ page.

If an invoice was created erroneously you may need to adjust the invoice to credit the customer. You can create an adjustment by following the same navigation noted above in “Invoice Creation,” and then clicking on “More Actions” and “Create Adjustment.

Revenue schedules are necessary when either:

  • The customer will be invoiced and making payment ahead of the work being completed under the contract. In this case:
    • The contract line “Revenue Treatment” should be set to “Deferred”
    • A revenue recognition schedule should be set up to recognize revenue as work is completed on the contract.
  • The customer will be invoiced and making payment substantially after work has been completed under the contract. In this case:
    • The contract line “Revenue Treatment” should be set to “Accrual”
    • A revenue recognition schedule should be set up to recognize revenue as work is completed on the contract.

Billing schedules help to create invoices quickly and easily, where regular invoicing is warranted and called for, with respect to:

  • Date or period of invoicing (e.g., a customer needs to be billed monthly), AND
  • Amount (GU knows the amount of work that will be completed under a contract in a given period, and can reasonably anticipate amounts to invoice)

Billing schedules are NOT typically useful when:

  • There are very few invoices that need to be created under a given contract, OR
  • The amount to be invoices for any given period is unknown

If a customer has an invoice overdue for 120+ days, then Revenue and Receivables allows 10% of their total amount due at the end of the month. An allowance for doubtful accounts is charged to the cost center, posted as an expense in one month, and auto-reversed the following month. The allowance works to offset foreseeable write-offs of uncollectible receivables.

Customer Contract Specialists can initiate write-offs when they are specifically aware that some or all of a debt for a given customer is uncollectible. Write-offs need to be reviewed by the department’s Senior Business Manager and the central AR Manager. In certain cases, write-offs may require CFO approval as well.

Central AR Managers may also initiate write-offs if in their expert opinion given receivables management and Georgetown Policy, the debt is uncollectible.