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Section 10

SECTION 10: Accounts Receivable

Last updated: January 2011
  1. General
  2. Departments Without Billing Facilities
  3. Departmental Billing
  4. Delinquent Accounts
  5. Collection Advice
  6. Exhibits/Forms

I. General

  1. The Departmental Receivables Department provides services for University departments lacking facilities or personnel to issue 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, please contact Departmental Receivables at 355-3313 (see item II).
  2. Delinquent Receivables administers accounts that were initially billed by departments and have subsequently become delinquent (see item IV).
  3. Miscellaneous charges between University departments should be processed by completing the appropriate e-doc (see Section 40).

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II. Departments Without Billing Facilities

  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, Hannah Administration Building, 426 Auditorium Road Rm. 110.
  5. Uncollected accounts will be charged back to the department and transferred to the Delinquent Receivable Department for further collection efforts. (see item IV)
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III. Departmental Billing

  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 Reporting, Hannah Administration Building, 426 Auditorium Road Rm. 394.
  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.
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IV. Delinquent Accounts

  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 that is signed by the department head (see item VI). The collection advice should include the following information concerning the account:
    1. Accounting information, names, addresses, etc.
    2. Correspondence or records of phone conversations regarding the account.
    3. All charges for the account that has become 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, Hannah Administration Building, 426 Auditorium Road Rm. 110.
  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.

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V. Collection Advice

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 (see item VI). Instructions for completion and distribution are located on the first page of the form.
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VI. Exhibits/Forms

Exhibit 10-A. Departmental/Delinquent Receivables Collection Advice Form

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