Billing and Collection Controls
The following billing and collection controls provide for a minimal level of internal control that should be in place over University revenue-generating operations. Additional controls may be required by the Accounting Office. No cash collection activity should be implemented without the review and approval of the Accounting Office.
The following process should be followed when billing a client for goods or services:
- When a person or organization receives goods or services, and is going to pay for them at a future date, it is important that the receivable be recorded on the University's records. The University IFR invoice establishes the receivable and should be issued each time an individual or organization does not pay for the goods and services at the time of delivery.
- Before a department invoices a client, they should check to see if the customer is currently available in the Oracle/PeopleSoft Billing and Collection module. If the customer is not available, the department should go to the following site and add the customer: https://www.albany.edu/accounting/ifr-customer.php Normally the customer will be entered into the database by the Accounting Office within 24 hours.
Contact University Applications Development for training related to billings.
Reporting is updated on a nightly basis. Billings and collections will post within 24 hours. To view reports, sign into PeopleSoft and then in the first menu box, click on UA Custom Addons, and in the next menu box click on UASA IFR Financials.
- The invoice specifies that all payments must be sent directly to the Lockbox by the client. This directive should not be changed by the project director.
- Memoranda or other notices may accompany the IFR invoice, but may not be substituted for the IFR invoice.
The Department maintain the University's official IFR accounts receivable records.
Experience has shown that timely follow-up on outstanding invoices greatly enhances the collection process. Project directors are primarily responsible for collecting the amounts billed and for the necessary follow-up on outstanding invoices.
When an invoice is not paid within a reasonable time, normally thirty to sixty days, the following actions should be taken by the project director.
- Issue dunning letter(s) requesting immediate payment and retain copies of these letters.
- No further service should be given to a client who has a past due invoice.
- The Accounting Office will also issue automated dunning notices on a quarterly basis.
2. Charging Another IFR Account
The expenditure transfer process is the appropriate means to charge another IFR account within the University. This process will transfer expenditures equaling the amount charged from the account providing the good or service to the account receiving the good or service. Transferring the expense from the servicing account automatically adjusts any related overhead charges.
Recharge IFR accounts transfer expenditures by submitting monthly summaries of usage to the Accounting Office. Accounts that are not recharge operations can charge another IFR account by submitting a memorandum to the Accounting Office requesting the transfer. Include the following information:
- Account transferring the expenditure (provider of good or service)
- Account receiving the expenditure (receiver of good or service)
- Description of charge
- Period of coverage or date of delivery
A copy of the transfer request should be sent to the account manager accepting the charge.
This procedure cannot be used to cross funds (i.e. to or from an IFR and a State Purpose account).