When sales are made to customers, and payment is not immediately collected, the invoice must still be recorded in UniFi as an accounts receivable by preparing a journal voucher. When the payment is subsequently received from the customer, a cash report should be prepared recording this receipt to the accounts receivable. For more information about selling activities, visit our Selling Goods and Services topic page.
Financial Services Division will provide accounts receivable management and collection activities for university departments and units that do not wish to manage these activities themselves. This is managed through Student Accounts & Treasury as Non-student Accounts Receivable (NSAR).
When customers are granted the ability to buy goods or services and pay at a later date, the university is taking on the risk that some customers may not pay. Credit granting processes try to minimize the risk to the university by having confidence that credit customers will pay their bills. It is important to ensure that the process used in your unit to determine which customers will be granted credit is documented, communicated and applied consistently by all staff involved in the account receivable process.
Units that bill customers are responsible for determining the credit worthiness of their customers, whether the receivables are managed in the department or by the university centrally. At a minimum you should document your current process. If a credit granting process is not in place in your department, one should be developed considering the following:
On-going management of receivables is an important part of the business process. One key tool for receivable management is the preparation and review of a monthly aged trial balance.
An aged trial balance summarizes outstanding customer invoices by the time that has elapsed since they were issued. The older the invoices are, the greater the risk that they will not be collected. Preparing this report will provide a management tool to identify customers or invoices that may require attention and follow-up.
When a unit maintains their own receivables, it is important to ensure that the record of invoices agrees to what has been posted to UniFi. This applies to units when they are issuing invoices that are not recorded through the central accounts receivable system. On a monthly basis, the total of all outstanding invoices as listed on the aged trial balance should be agreed to the account balance in UniFi. Any variances should be investigated or resolved.
The two adjusted balances should agree. Any amounts that were adjusted should be followed-up and recorded. This will ensure that they are not carried forward to the subsequent month’s reconciliation.
|Non Student Accounts Receivable Invoice|