8.20 Invoicing / Accounts Receivable

General Sales & Services Billing to Outside Entities (Except UMC)

1. University departments are responsible for invoicing and collecting monies due for sales and services provided to non-University customers.  This policy does not apply to billing for activities within the 3xxxxx or 4xxxxx account series.  Departments should complete the Invoice e-form following the instructions provided.  Include a description of the services and appropriate payment terms, and send the invoice to the customer.  Departments currently using a custom invoice form are encouraged to use the Invoice e-form.  Payments should generally be remitted directly to the billing department.  Departments should then complete an eDistribution of Deposit form, referencing the invoice number in the description field, and forward the payment to the Bursar’s Office.
    
2. Departments should make reasonable attempts to collect outstanding billings. For advice on methods for successfully collecting receivables or for information on collection agencies, contact the Bursar’s Office Accounts Receivable department.
    
3. Departments who wish to use the FRS system to monitor unpaid invoices should prepare a journal entry that debits the G/L account and accounts receivable account control and credits the S/L account and revenue object code.  Obtain signatures from the appropriate authorized signers and forward to the Financial Services Office.

4. Pursuant to the terms of the contracts between University Medical Center and University of Arizona, departments who provide goods and services should complete the Invoice (UMC) e-form following the instructions provided.  If a payment schedule is included in the contract as part of the terms of the agreement, the payment schedule should be followed.  Include on the invoice the appropriate G/L account number, account control 1340, the UMC contract number, and a description of the goods or services, and send it to UMC Accounts Payable department at P.O. Box 245020 or 655 E. River Rd., Tucson, AZ 85704-5824.  Payments should be remitted directly to the University of Arizona Bursar’s Office.
    
5. Departments are also required to prepare a journal entry to post the accounts receivable for revenues due from UMC to a University G/L account and forward it to the Financial Services Office.  An automatically generated journal entry is attached to the Invoice (UMC) form to aid this process.  Departments that are currently using a custom invoice or journal entry form to bill and/or record the receivable are encouraged to use the Invoice (UMC) e-form.

Fiscal Year-End Accounts Receivable

6. University departments are required to report to the Financial Services Office all outstanding accounts receivable due as of June 30 of each fiscal year.  Information to provide includes any of the following that may apply:
    

   a.       A memo signed by the department head, which summarizes the aged receivables by General Ledger (G/L) account number and account control.

   b.      Individual schedules detailing aged receivables by customer (one schedule for each account number).

   c.       A schedule of customers who have prepaid for future services.

   d.      A schedule of customers with credit balances (customer has overpaid).

   e.       A schedule of uncollectible accounts receivable that need to be written-off as of June 30.

   f.        A schedule of uncollectible accounts receivable that were written-off during the fiscal year.

   g.       A three-year history of the total dollar amount of accounts receivable and the amount written-off each year.

Accounts Receivable Worksheets to be completed and submitted to FSO can be found at the e-forms website.  For questions regarding the accounts receivable year-end procedure, contact the Financial Services Office, Financial Management.