Accounts Receivable (AR) Implementation

The Research Administration Continuous Improvement (RACI) leadership has announced the implementation of a new Accounts Receivable (AR) project, designed to significantly improve the university’s capacity to manage revenue.

The project has been designed to address several revenue management needs at Duke.  At present, revenue is booked only when cash is actually received.  Invoicing is not automated, and manual creation of invoices is labor-intensive.  Because there are multiple systems to create invoices and bill sponsors, there is no systematic capture of what has been invoiced and not paid (Accounts Receivable), nor is there a formal record of billing in SAP when invoices are issued.

With the new system, the invoicing process will be more automated and efficient; invoice history will be available in SAP for sponsored projects; and, reports will be available to track outstanding receivables, providing greater visibility of past due invoices.  The new system will significantly improve revenue management for sponsors that require formal invoicing. 

It is important to note that there will be no impact on Letter of Credit projects – cash draws will continue to post as revenue. 

The Office of Sponsored Programs (OSP) has served as the primary resource for the development of the AR system for managing revenue on sponsored programs, and will be providing training to the grant management community in the coming months in both process and system use.  OSP will be posting a training schedule for department staff in the near future (classes will count towards Research Costing Compliance continuing education credit).  Training will focus on basic concepts of accounts receivable, how AR impacts sponsored research financial reporting, new reporting tools, and new procedures.

Watch for further information in the Grant Management Community Newsletter and within the memo Jim Luther sent regarding OSP customer response during AR implementation.