Procedure: 401-A/R, Invoicing, Collections
Recordkeeping
Each department must keep a list of accounts submitted for write-off. No further goods or services should be provided to customers whose accounts have been submitted for write-off.
If a department uses the Bursar's office to process payments, Accounting Services will
- obtain the yellow Bursar copy of the invoice,
- stamp it with the write-off approval stamp,
- date and sign it,
- and return in to the department when approval for write-off is granted.
The department should make a notation on the department's copy that the invoice has been written off and the date of write-off approval. This copy is to remain filed in the numerical master file. The Bursar's copy and any detail should be placed in alphabetical order in a separate file for written-off accounts. Additional copies of the invoice may be destroyed.
Accounts at the Collection Agency
A record of all accounts submitted for collection agency placement must be maintained, and the status of these accounts should be checked at least quarterly. Those departments submitting accounts directly to the collection agency should, when they receive payment from the collection agency, request return of the yellow copy from the Bursar. When payment is received for accounts submitted through Accounting Services for collection, the yellow copy will be obtained from the Bursar and returned to the department. Should a direct payment on an account placed for collection be received by a department, the department must notify the collection agency immediately. Notification can be made either directly, or through Accounting Services, depending on whether the account was submitted directly to the collection agency or through Accounting Services.
When collection of an account occurs, the account should be cleared from the department collection agency placements records, and the detail attached to the yellow copy and filed in the paid invoice file.
If the collection agency determines that the account is uncollectable, then the department with a delegation agreement should write-off the invoice. If the department does not have a delegation agreement, the account will be written off by Accounting Services.
If using the six-part invoice form, the billing department must notify the Bursar in writing of the cancellation of any invoice and request return of the yellow copy. The pink and yellow copies should be attached to the blue copy, all marked "cancelled" and the date and reason for cancellation noted, and filed numerically in the master file (blue copies).
All copies of a voided invoice should be filed together in the numerical master file (file of blue copies, if using the six-part invoice form)
Procedure: 401-A/R, Invoicing, Collections