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Accounts Receivable Management: Difference between revisions
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Policy No.: '''6084'''<br /> | Policy No.: '''6084'''<br /> | ||
Effective Date: '''09/26/13'''<br /> | Effective Date: '''09/26/13'''<br /> | ||
Revised Date: <br /> | Revised Date: <br />'''DRAFT''' | ||
Reviewed Date: ''' | Reviewed Date: '''07/01/16'''<br /> | ||
<br /> | <br /> | ||
<big>'''Accounts Receivable Management Policy'''</big> | <big>'''Accounts Receivable Management Policy'''</big> | ||
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Sponsored Programs Accounting (SPA) is responsible for generating accurate, timely invoices to external customers for sponsored receivables.<br /> | Sponsored Programs Accounting (SPA) is responsible for generating accurate, timely invoices to external customers for sponsored receivables.<br /> | ||
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Other specific invoicing requirements may render the A/R subsystem not applicable/efficient for use. For example, contractual terms may require wording, terminologies, etc. that are unworkable with the current invoice template. These exceptions will be reviewed on a case by case basis by the Controller | Other specific invoicing requirements may render the A/R subsystem not applicable/efficient for use. For example, contractual terms may require wording, terminologies, etc. that are unworkable with the current invoice template. These exceptions will be reviewed on a case by case basis by the Controller and Finance Cashier’s Offices.<br /> | ||
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The standard payment term to be applied to invoices generated in the A/R subsystem is net 30 days. | The standard payment term to be applied to invoices generated in the A/R subsystem is net 30 days. | ||
===Exceptions=== | ===Exceptions=== | ||
As mentioned above, the A/R subsystem is not designed for internal (on campus) or intercampus charges. Examples would include UNMC departments billing each other ( | As mentioned above, the A/R subsystem is not designed for internal (on campus) or intercampus charges. Examples would include UNMC departments billing each other (phone charges, copy charges, dietary tickets, etc.) and intercampus charges (UNO, UNL, UNK, etc.). Transactions that can be accounted for solely within SAP via journal entry are not applicable to the intent of what is invoiced via the A/R subsystem. | ||
==Entering Invoices Within Management Resources== | ==Entering Invoices Within Management Resources== | ||
Billers can obtain access to the A/R subsystem with a request to the [mailto:accountsreceivable@unmc.edu Finance Cashier’s Office]. Once accessed, billers can enter customer and contact information for invoicing purposes, with the ability to then submit invoicing details to approved customer/contacts. Administered by the Finance Cashier’s Office, the subsystem is monitored daily for newly entered customers and contacts. In addition, they review, generate, and mail submitted invoices as instructed by billers. <br /> | Billers can obtain access to the A/R subsystem with a request to the [mailto:accountsreceivable@unmc.edu Finance Cashier’s Office]. Once accessed, billers can enter customer and contact information for invoicing purposes, with the ability to then submit invoicing details to approved customer/contacts. Administered by the Finance Cashier’s Office, the subsystem is monitored daily for newly entered customers and contacts. In addition, they review, generate, and mail submitted invoices as instructed by billers. <br /> | ||
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===Timelines=== | ===Timelines=== | ||
Agreements or contracts may determine the billing structure as to when an invoice is to be generated (monthly or quarterly, for example). Such structured invoices should be created within 10 business days as agreed upon. In the event of no invoicing schedule, billers should initiate the invoice process upon completion of a transaction and when the amount to be charged a customer is known/determined. | Agreements or contracts may determine the billing structure as to when an invoice is to be generated (monthly or quarterly, for example). Such structured invoices should be created within 10 business days as agreed upon. In the event of no invoicing schedule, billers should initiate the invoice process upon completion of a transaction and when the amount to be charged a customer is known/determined. | ||
==Collection and Write-off of Delinquent Balances== | |||
===Collection Procedures for Invoices Outstanding=== | |||
*greater than 30 days – A/R staff will send second request billing to vendor | |||
*greater than 60 days – A/R staff will communicate with biller to determine who will follow up with vendor | |||
*greater than 180 days – A/R will send a revised invoice with service charges to vendor | |||
:*Invoices outstanding greater than 180 days will be assessed service charges at the rate of 16% per annum from the invoice due date | |||
:*Vendors will be placed on credit hold (new sales/services for delinquent vendors cannot be accepted) until all delinquent and written off balances are paid. The Accounts Receivable/Cashiering Office will provide written notification to the vendor, the department and the Vice Chancellor of Business and Finance | |||
===Write-off of Delinquent Balances=== | |||
*Delinquent balances greater than 240 days will be written off from the A/R system. Write-offs must be submitted to the Vice Chancellor of Business and Finance (VCBF) for approval. The VCBF will determine if written off balances will be: | |||
:*turned over to campus legal counsel | |||
:*turned over to a collection agency | |||
:*retained by UNMC Accounts Receivable/Cashiering Office | |||
==Non-compliance== | ==Non-compliance== | ||
Payments received by UNMC outside of this policy (not invoiced using the A/R subsystem) may not be recorded to departmental accounts as timely and these delays can result in inaccurate financial information. Complications often result in electronic payments received with no supporting backup. With no ability to properly account for them, these unclaimed receipts (checks, ACH, & wire payments) will be listed in the Cashiering Office website for review, updated regularly as needed. After 90 days of receipt, payments will be removed from the listing and retained by the Controller’s Office. | Payments received by UNMC outside of this policy (not invoiced using the A/R subsystem) may not be recorded to departmental accounts as timely and these delays can result in inaccurate financial information. Complications often result in electronic payments received with no supporting backup. With no ability to properly account for them, these unclaimed receipts (checks, ACH, & wire payments) will be listed in the Cashiering Office website for review, updated regularly as needed. After 90 days of receipt, payments will be removed from the listing and retained by the Controller’s Office. | ||