OVERVIEW

Interagency billing is a process that allows agencies to bill each other, settling bills without the need for a paper check and using accounting entries only. The interagency billing process provides visibility into the status of interagency receivables (open item) and payables (voucher).

DIFFERENT SCENARIOS WITH Online AND Future Phase AGENCIES PERFORMING INTERAGENCY BILLING

Scenario 1: Online Agency Bills an Online Agency

1. The Billing Agency creates a bill for the customer (Billed Agency) in the SFS Billing module, either online or via the bulkload process. Two accounting transactions will be created when the bill is created:
   1. A receivable “open item” is created in the SFS Accounts Receivable module; and
   2. A voucher is created in the SFS Accounts Payable module with the Billing Agency as the vendor to be paid and the Billed Agency as the business unit (BU) on the voucher. Billed Agencies can view their open interagency vouchers on the NYAP3240 (Outstanding Interagency Vouchers) report in SFS.
2. The Billed Agency reviews the AP voucher and updates the ChartFields.
   1. The amount on the voucher cannot be changed by the Billed Agency. If the Billed Agency disputes the amount of the charge, they must negotiate with the Billing Agency for an adjusted invoice. This process will result in a new voucher for the agreed upon amount.
   2. Select ChartFields are automatically populated by the system when the voucher is created. The ChartField values used are NOT valid for payment and will not pass budget check. These values are created to ensure that payables and receivables are in balance in SFS. Agencies must change the ChartField strings on the voucher to the appropriate ChartField values for payment of the invoice before submitting the voucher for payment.
3. The Billed Agency submits the voucher for budget checking (budget is used). If the voucher does not pass budget checking, the Billed agency must update its ChartFields and submit the voucher again for budget checking.
4. Upon successful budget checking, the voucher will automatically move to OSC-BSE Workflow.
5. If approved, the voucher is posted and the Billed Agency recognizes an expenditure and the Billing Agency recognizes revenue.
6. The next Accounts Payable payment process in the SFS that occurs on or after the voucher’s due date will select the voucher for payment.
7. Payment details are automatically sent to the SFS Accounts Receivable module where the associated open item is closed.

Scenario 2: Online Agency Bills a Future Phase Agency

1. The Billing Agency creates a bill for the Billed Agency in the SFS Billing module, either online or via the bulkload process. A receivable “open item” is created in the SFS Accounts Receivable module.
2. The Billing Agency sends the invoice, if needed, to the Billed Agency outside of the SFS.
3. The Billed Agency receives the invoice and follows its internal process to create and approve a payable.
4. The Billed Agency bulkloads an Accounts Payable voucher to the SFS for the payable to the Billing Agency. The Accounts Payable voucher includes only expenditure (debit –positive amount) details and is created using:
   1. SFS COA for the PeopleSoft layout –VOH, VOL, and VOD.
   2. An invoice number as provided by the Billing Agency, allowing the SFS to link the Accounts Payable voucher to Billing Agency receivable when payment is made.
   3. SFS will reject the voucher if its amount differs from the amount of the related Interagency invoice.
5. The voucher is processed for payment.
6. Payment details are automatically sent to the SFS Accounts Receivable module where the associated open item is closed.
7. The Billed Agency receives notice that the transaction was processed via the M161.

Scenario 3: Future Phase Agency Bills an Online Agency

1. The Billing Agency uses its internal system to prepare an invoice to the Billed Agency.
2. The Billing Agency sends the invoice to the Billed Agency, including the desired ChartField coding (not cost centers) for their portion of the resulting accounting entry.
3. The Billed Agency creates an interagency journal entry in the SFS.
   1. The expense (debit –positive amount) line is for the billed agency.
   2. The revenue (credit –negative amount) line is for the billing agency.
   3. Both entries use SFS ChartFields.
4. The journal is validated and budget checked (budget is used).
5. The journal is submitted for approval to Billed Agency management and to OSC.
6. After approval, the journal is posted.
7. Both the Billing Agency and the Billed Agency receive record of the completed journal entry via the M161.

Scenario 4: Future Phase Agency Bills a Future Phase Agency

1. The Billing Agency uses its internal system to prepare an invoice to the Billed Agency.
2. The Billing Agency sends the invoice to the Billed Agency, including its desired coding for their portion of the resulting accounting entry. This coding can be ChartField values and/or cost centers, depending on how the Billed Agency will process the transaction. If processed using:
   1. Direct entry – The Billing Agency provides the Billed Agency with their cost centers.
   2. PeopleSoft layout –JEH and JEL; the Billing Agency provides the Billed Agency with their SFS ChartField values.
3. The Billed Agency creates a journal entry in their internal system and records the entry in the SFS via bulkload or direct entry.
   1. The expense (debit – positive amount) line is for the Billed Agency and is created using either SFS ChartFields or cost centers, depending on how the transaction is being created.
   2. The revenue (credit – negative amount) line is for the Billing Agency and is created using either SFS ChartFields or cost centers, depending on how the transaction is being created.
4. The journal is validated and posted in the SFS.
5. Both the Billing Agency and the Billed Agency receive notice of the completed journal entry via the M161.

For additional instruction on this topic, visit the job aids published to SFS Coach. SFS Coach is accessible from the SFS home page after logging in with your SFS user ID and password.

Guide to Financial Operations

REV. 01/18/2018