The University of ArizonaThe University of Arizona
Financial Policies & ProceduresFinancial Policies & Procedures
 

8.20 Invoicing/Accounts Receivable

Purpose:

To provide policies and procedures for billing non-University customers for goods and services.

Policy Owner:Financial Management


General Sales & Services Billing to Outside Entities

  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 3xxxxxx or 4xxxxxx 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 a Cash Receipt, 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.

Fiscal Year-End Accounts Receivable

  1. 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:
    1. A memo signed by the department head, which summarizes the aged receivables by account number and object code.
    2. Individual schedules detailing aged receivables by customer (one schedule for each account number).
    3. A schedule of customers who have prepaid for future services.
    4.  A schedule of customers with credit balances (customer has overpaid).
    5. A schedule of uncollectible accounts receivable that need to be written-off as of June 30.
    6.  A schedule of uncollectible accounts receivable that were written-off during the fiscal year.
    7. 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.