ACCOUNTS RECEIVABLE BILLING AND MONITORING PROCEDURE
Effective: March 1, 2003
Revised: October 30, 2018
Requirements for Invoicing External Customers
All Clemson University departments are required to receive approval prior to extending credit of the University through the invoicing process. Approval must be obtained whether the department intends to invoice through the Accounts Receivable Office or within their own department. Departments intending to invoice external customers are required to submit a Department Approval Form to the Accounts Receivable Office. The form must be signed by the Department Head or Dean, and mailed/interoffice/emailed along with any attachments to the following address:
Administrative Services Building
108 Silas N. Pearman Blvd.
Clemson, SC 29634-5314
The Accounts Receivable Office will review all submitted approval forms and either approve or deny the request. Each department will be notified once their request has been processed.
Once authorization has been received, departmental billing personnel must receive training for invoicing on the University's web invoice system before bills can be created. All invoices must be created using the CUBS web invoice.
When an invoice is finalized, departmental personnel will be responsible for printing and mailing the invoice along with all necessary attachments in a timely manner. Invoices are due upon receipt. Aging for all invoices begins at the time the invoice is submitted for processing. An automatic accounting entry crediting the appropriate revenue account and debiting the department's accounts receivable account will be posted as a BI journal at that time. Back-up/supporting documentation of the invoice must be retained in the billing department for reconciliation purposes.
Departments will not extend credit/invoice customers with outstanding charges over 60 days old. Monthly aging reports will be available for departmental monitoring of outstanding accounts receivable through the Business Data Warehouse.
The Department of Grants and Contracts Administration is responsible for invoicing all externally funded sponsored projects. Special approval by Grants and Contracts Administration is required for departments to bill Fund 20 projects. If a department is approved to invoice Fund 20 projects, they must use the CUBS web invoice and/or have an approved interface with CUBS.
Receipt of Payments
All invoice payments will be processed through the Accounts Receivable Office.
Payments received by departments that are for an account recorded as a receivable must be forwarded immediately to the Accounts Receivable Office for processing. An entry crediting the billing department's accounts receivable account will be posted when the payment is received. Invoice payments may be monitored by using system-generated daily payment reports through the Business Data Warehouse.
Corrections to Invoices
Every effort should be made by the billing department to ensure invoices are correct before they are finalized. Any correction/adjustment to the bill amount must be made in writing to the Accounts Receivable Office, by completing the Invoice/Void/Adjust/Write-Off form within PeopleSoft Finance. Once approval is received, Accounts Receivable will make the necessary correcting accounting entries. These entries will be reflected on the billing department's monthly revenue report and must be included in monthly revenue reconciliations.
If a receivable is not paid within 30 days, the University's Accounts Receivable Office will send a reminder letter to the customer. If the account remains outstanding after 60 days, the Accounts Receivable Office will send a second letter informing the customer of the past due status. A third letter will be sent for accounts outstanding 90 days or more informing the customer that if payment is not received within 20 days the account may be placed with a state approved outside collection agency where they may incur collection charges of up to 33 1/3%. Letters are system-generated and will be sent on all past due accounts, unless the item is in dispute or with an outside collection agency.
Departments will be notified of any invoices older than 90 days, which were not paid within the 20 day period following final notices being mailed. It then becomes the department’s responsibility to request that the account be written off or sent to a collection agency. If no response is received by the department after the invoice reaches 270 days old, it may be deemed uncollectible and be written off. Departments will be notified in writing by the Accounts Receivable Office when a write-off is going to take place.
If debts are not collected by the collection agency, they will be submitted to the Controller or Associate Controller for write-off approval. Any remaining balance of all accounts sent to a collection agency may be written off if no payments are received within a 90 day period. Accounts Receivable will make the necessary accounting entries to CUBS for the write-off and notify the department. A debit to the department's original revenue account and a credit to the department's accounts receivable account will be posted. Write-offs will be reflected in the billing department's monthly revenue report and must be included in the monthly reconciliation of revenue.
The Accounts Receivable Office also sends past due letters on the behalf of Grants and Contracts Administration. Letters are sent at the standard interval of 30-60-90 days for non-federal sponsored research projects and an interval of 60-90-120 days for federal projects. Collection actions are conducted in accordance with the project agreement and are dependent on the sponsor (customer) and previous payment history.
In general, collections proceed as follows:
- After 60 days, Grants and Contracts Administration will notify the appropriate Principal Investigator (P.I.), Department Chair, College contact and Associate Dean of Research (ADR) regarding non-payment.
- After 90 days, Grants and Contracts Administration staff will notify the Department Chair, College contact, Associate Dean of Research (ADR), the Vice President of Research (VPR) and Accounts Receivable Office and coordinate appropriate action; i.e., suspend work, suspend P.I.’s and/or Department’s Indirect Return, or other course of action. Grants and Contracts Administration will continue to coordinate with the College, P.I., and the sponsor for past due payments.
- After 180 days, Grants and Contracts Administration staff will send a final notification as indicated for the 90 days and note that in 30 days, the invoice will be deemed uncollectible and the Department/College will be responsible for the debt. The Department/College will notify Accounts Receivable of the chart field that will cover the debt.
- Grants and Contracts Administration will distribute an aging report to the ADRs on a monthly basis.
If deemed uncollectible, corrections or a transfer journal will be required in coordination with Grants and Contracts staff and Accounts Receivable Office. The invoice will be submitted to the Controller or Associate Controller for approval to be written-off.
Departments Authorized to Invoice and Receive Payments
High volume departments with established subsystems may be authorized by the Chief Financial Officer or his designee through the Accounts Office to process and collect their own invoices. However, these departments will provide a quarterly summary of aged accounts receivable and a report on collection efforts for past due accounts to the Accounts Receivable Office. This report must accurately reflect the department's outstanding receivables. Failure to comply with certification requirements will result in de-certification. These departments must follow the same general collection and aging procedures that are followed by Accounts Receivable. Invoices may not be written off without prior approval from the Controller. Invoices that are written off must have department head/manager approval with proper documentation that shows where collection efforts were made. All invoices written off within the quarter must be sent to the Accounts Receivable Office as part of the quarterly aging report. Any invoices that are sent to collections must be placed with a state-approved outside collection agency.
The Accounts Receivable Office will periodically monitor departmental accounts receivable processes to assure the prompt collection of payments, accurate accounts receivable reporting, and adherence to University policies and procedures.
Departments certified to process and collect invoices will also be responsible for making entries in CUBS crediting the appropriate revenue account(s) in accordance with the University's Receipting Policy.