SECTION 10: Accounts Receivable

1. The Departmental Receivables Department provides services for University departments lacking facilities or personnel to issue monthly billings for materials sold or services rendered to individuals or off-campus organizations.  A service fee is charged on all invoices generated for non-General Fund accounts.  This service fee, which is charged to user departments monthly based on the number of invoices processed, is a combination of an initial invoice processing cost plus the cost of follow-up collection procedures required.  The fee is reviewed annually and may be correspondingly revised. For more information, contact Departmental Receivables at 355-3313.
2. Delinquent Receivables administers accounts that were initially billed by departments, but which have subsequently become delinquent (see item IV).
3. Miscellaneous charges between University departments should be processed by completing a journal voucher (see Section 40).

1. Departments can submit their accounts receivable due from individuals and off-campus organizations to the Departmental Receivables Department by completing a Collection Advice Form (see item V).
2. All receivables should be submitted within 30 days of the origin of the charge.
3. The Departmental Receivables Department credits departmental accounts for all receivables properly submitted and will assume billing and collection responsibilities.
4. It is very important that any remittance subsequently received by the department as payment on these accounts be forwarded immediately to Departmental Receivables, 110 Administration Building.
5. Uncollected accounts will be charged back to the department and transferred to the Delinquent Receivable Department for further collection efforts. (see item IV)

1. Departments that elect to do their own billing are responsible for maintaining good collection procedures which include:
   1. A current billing status each month.
   2. Follow-up prior to an account becoming 90 days old.
   3. A complete and auditable bookkeeping procedure.
   4. Proper processing of delinquent accounts (see item IV).
2. Departments needing assistance in developing receivables procedures should contact the Office of Financial Analysis, Office of the Controller, 394 Administration Building.
3. Due to the collection and billing cost involved all departments are encouraged to require cash payment for services and materials if the total charge is less that $25.

1. Departmental billings still outstanding after 90 days from the date the materials were sold or services were rendered are considered delinquent and should be immediately submitted to the Delinquent Receivables Department of the Accounts Receivable Division via a collection advice form manually labeled "Delinquent" and signed by the department head (see exhibit 10-B).  The collection advice should include the following information concerning the account:
   1. Account numbers, names, addresses, etc.
   2. Correspondence or records of phone conversations regarding the account.
   3. All charges for the account that are delinquent.
   4. Any partial payments received to date.
2. Any remittance subsequently received by the department as payment on a delinquent account must be remitted to the Delinquent Receivables Department, 110 Administration Building.
3. Accounts with an unpaid balance of $25 or less will not be accepted by Delinquent Receivables unless the account is for a University employee.  All other delinquent accounts under $25 remain the responsibility of the department.
4. Collection obligations are assumed by Delinquent Receivables and any amounts subsequently collected will be redistributed to the departments monthly, less collection fees incurred.
5. If an account originally submitted to Departmental Receivables for billing (and credit) becomes delinquent, the department will be charged back for the delinquent amount pending collection.
6. No further credit may be extended to any party whose account has become delinquent.

These forms are used to assign collection obligations to the Receivables Department (Departmental or Delinquent) for individuals or off-campus organizations indebted to the University.  To assign non-student and off-campus organization accounts to Departmental or Delinquent Receivables, use the respective collection advice form exhibit 10-A or exhibit 10-B). Instructions for completion and distribution are located on the second page of the exhibits.