University Bursar: Application of Payments

University of Illinois Banner AR applies all payments on a First In, First Out (FIFO) basis, unless the customer includes specific payment instructions, in which case University Bursar manually applies the payment to the designated invoice(s).

The FIFO process has the following sequential exceptions:

• Direct (manually processed) application using a specified charge transaction
• Direct (manually processed) application using an invoice number
• Like detail code within the same SAR term (reversal)
• Oldest SAR term (last semester’s charges before this semester’s charges) except Title IV aid, which is applied only to current academic year charges
• Highest priority – Banner AR is coded to process payment transactions with the highest priority being charges (i.e., a payment reversal), then grant payments, followed by all other payment types
• Oldest effective date (true FIFO)
• Lowest transaction number

A department may be authorized and trained as a delegated agent to directly apply a payment to an Invoice number or transaction based on the uniqueness of the department’s processing.