ACCOUNTS RECEIVABLE BILLING AND MONITORING PROCEDURE
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 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 finalized. An automatic accounting entry crediting the appropriate revenue account and debiting the department's accounts receivable account will be posted 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.
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 accounts receivable payments will be processed through the Accounts Receivable Office in the Administrative Services Building.
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.
Credit card payments will not be accepted for invoices over $20,000.00.
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. Notification of invoice change or cancellation must include invoice number, department number, and the customer's name. 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.
Collections ProceduresIf 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.
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 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. All invoices to be written off must be sent to the Accounts Receivable Office listing the invoice number, date, customer name, amount, and the reason for the write-off. Any invoices that are sent to collections must be placed with a state approved 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.