ADMINISTRATIVE PROCEDURE

Creating a Billing

Bill Generation

Introduction

Invoices created by the University of Minnesota for non-sponsored billing are initiated by departments and clusters. All sponsored related invoices are created by Sponsored Financial Reporting (SFR).

Creating a bill for non-sponsored activity through EFS

The billing initiator gathers the following information for billing a customer:

  • Customer name
  • Address
  • Contact, telephone number, and e-mail address
  • Tax status of customer and Certificate of Exemption (ST3) if required
  • Goods or services provided to customer
  • Price
  • Chartstring

Refer to Form UM 1696: Invoice Request (Word|Excel), which may be used for this purpose.

The billing initiator sends this information to the Cluster Billing Specialist (preparer) to enter the billing information into EFS. Invoices will be distributed by Accounts Receivable Services via e-mail, U.S. mail, or upload through the customer’s online system.

Creating a bill for sponsored activity through EFS

Accounting Professionals in SFR generate invoices on a monthly or quarterly basis, or by the basis written in the award agreement that is issued from the sponsoring agency. Invoices will be distributed to sponsors via e-mail, U.S. mail, or upload through the sponsor’s online system. Certain federal awards are issued to the University on a Letter of Credit. Letters of credit are requested on a weekly or monthly basis depending on the federal agency.

Interim invoices or reports (for Letter of Credit and other awards as applicable) are prepared by SFR. At the time of award or budget period end, SFR collaborates with the academic department to finalize all costs included on the final invoice or final report (for Letter of Credit and other awards as applicable). It is expected that the academic department and SFR are working together during and after the period of performance until the final invoice or report is completed and submitted to the sponsoring agency.

Academic departments are responsible for removing all transactions that will not be billed. Specific instructions for departments are outlined in Administrative Procedure: Moving Uncollectible Costs to Non-sponsored Programs.

Non-sponsored billing using approved department system

The University of Minnesota’s standard method of billing is to use the University’s Enterprise Financial System (EFS). Use of any other financial system must be approved by the Controller or designee. Departments using approved department systems are responsible for accurate, timely billings to non-sponsored customers, as well as maintaining appropriate internal controls. Please contact Accounts Receivable Services for further assistance at acctrec@umn.edu.

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