2.0  Non-Student Accounts Receivable

Prior to billing any Accounts Receivable, rates, fees and charges for all goods and services by University departments and units must be approved in accordance with Executive Vice President and Treasurer Memorandum No. A-18, Approval of Fees and Charges (as amended or superseded), or as mandated by federal or state regulations. Approved rates, fees, and charges will serve to support the billing along with other appropriate departmental documentation. Departments must have supporting documentation prior to billing for any cost transfer/reimbursement of expense and other miscellaneous activities that are not covered by an approved rate or contractual agreement.

2.1   Extending Credit

2.1 a.       When payment is not collected at the time of service or point of sale, credit has been extended. The extension of credit and the resulting creation of an Accounts Receivable do not guarantee payment, and are considered the last alternative as a method of payment. University departments and units that determine to offer credit must do so based upon sound business reasoning and in accordance with this operating procedure and the applicable campus credit and collections business process. 

2.1 b.      Prior to extending credit, customer information, including contact information, must be secured in order to establish a customer profile for effective billing and collection purposes. Each campus must include in its credit and collections business process the required data elements necessary to establish a non-student customer profile.

2.1 c.       University departments and units are required to have written agreements in place whenever practical to govern credit sales transactions with outside customers. Departments and units are strongly encouraged to utilize the standard credit and collection language as approved by the Office of Legal Counsel. Contact SRBS for the standard collection verbiage to ensure that delinquent interest and other collection remedies are available to the University. All external sales agreement templates and contracts must be approved in accordance with Executive Vice President and Treasurer Memorandum No. A-19, Delegation of Authority and Responsibility for Making and Executing University Contracts and Written Agreements (Except Employment Contracts) (as amended or superseded), and related procedures.

2.1 d.      University departments and units that utilize purchase orders as authorization from a customer to proceed with a sale or service must ensure the purchase order meets the terms consistent with this operating procedure. Purchase orders must meet the billing standards required by the respective campus as outlined in its credit and collections business process.  

2.2   Billing

Accounts Receivable credit transactions, including but not limited to, Non-Student Accounts Receivable sales of goods and services, reimbursement of expenses, contractual billings and sponsored program billings, must be entered and invoiced in the appropriate University-approved Accounts Receivable system at least monthly or per the applicable contractual agreement. All originating departments will be responsible for the monitoring of outstanding Accounts Receivable to ensure that billing and collection activities are managed according to the applicable campus credit and collections business process.


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