University of Minnesota  Procedure

Creating a Billing


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Please use the contact section in the governing policy.

Bill Generation


Invoices 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 if required
  • Goods or services provided to customer
  • Price
  • Chartstring

Refer to Form UM 1696: Invoice Request - Single Item (DOCX) or Invoice Request - Multiple Items (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 Enterprise Financial System (EFS). The Billing Specialist codes the item for the appropriate tax treatment. 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

SFR generates invoices according to the terms and conditions associated with the sponsored project. Sponsors are invoiced 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 financial reports are prepared by SFR and copies are provided to the department when issued to the sponsor. At the time of award or budget period end, SFR collaborates with the department to finalize all costs included on the final invoice or final financial report. It is expected that the department and SFR work together during and after the period of performance until the final invoice or financial report is completed and submitted to the sponsor.

Departments are responsible for removing all transactions that are unallowable from sponsored projects. Specific instructions are outlined in Administrative Procedure: Moving Uncollectible Costs to Non-sponsored Programs.

Non-sponsored billing using approved financial system

Use of any other financial system besides EFS must be approved by the Controller or designee. Departments using approved financial systems are responsible for accurate billings at the time the goods or services have been provided to non-sponsored customers, as well as maintaining appropriate internal controls such as separation of duties (cash application and billing), processes to ensure appropriate payment application, and collection processes and procedures including write-offs. Contact Accounts Receivable Services (ARS) for further assistance at [email protected].