Boise State University | University Financial Services



Boise State University | University Financial ServicesStandard Operating ProceduresTitle: Accounts ReceivablePolicy Reference: 6210 - Accounting PolicyPurpose & OverviewThe purpose of Standard Operating Procedures is to provide campus with roles, responsibilities, and procedures associated with the accounts receivable process. The University records revenue on the accrual basis. To ensure proper accounting, an account receivable should be established at the time a product or service is delivered, not at the time the payment is received.ProcedureProcess Flow Definitions Aging report: A report that lists unpaid customer invoices by number of days outstandingA/R Subledger: The OFC location for the detailed accounts receivable transactionsCustomer: The entity who is billed for sales/servicesFunding source: The combination of funding source segments used in OFC to code transactions to a financial account.Financial Information Owner: The individual(s) who is ultimately responsible for the accuracy of financial data for a department, unit and/or division.Invoice template: The Excel worksheet provided to establish an account receivable.Requirements Establishing an Account Receivable: The Financial Information Owner is responsible for promptly creating an account receivable when a sale/service activity with a future payment occurs. Completing Invoice Template: The Financial Information Owner is responsible for completing an Excel document with the following information:Customer Data : Provide name, address, contact information Funding Source: Provide funding source segments (Fund, Department, Cost Center, Account and additional segments as needed (supplement, project). Invoice AmountsInvoice Number (optional): Financial Information Owner may provide pre-determined invoice numbers. If none are provided, system generated invoice numbers will be assigned.Email template to: accountsreceivable@boisestate.eduCreating Invoices in A/R Subledger: Accounts Receivable is responsible for entering invoice information into the A/R Subledger. Distributing Invoices to Customers: The responsibility for distributing (mail or email) to customers is flexible and may be determined based on campus department preference.Invoice Payments: Accounts Receivable is responsible for recording all payments on invoices. Any invoice payments received by campus departments should be submitted to Accounts Receivable.Customer Statements: Accounts Receivable is responsible for sending monthly statements to customers unless departments request an alternative process.Customer Communication and Delinquent Accounts: The Financial Information Owner is responsible for all direct communication with customers when questions or disputes occur, including follow-up when payment is delinquent.Collection Actions: Occasionally collection action may be necessary for delinquent accounts. Accounts Receivable will facilitate the process of submitting delinquent accounts to the collection agency.Supporting Documentation Accounts Receivable Invoice TemplateBest Practices Review aging reports monthly to ensure data is accurate and communicate promptly with Accounts Receivable if discrepancies are discovered.Follow up with customers on delinquent accounts.Additional References SourceLinkDescriptionAccounts Receivable Invoice Template for submitting invoice information to Accounts Receivable. ................
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