B-8. Accounts Receivable
The internal billing (IB) and service billing (SB) documents in the KFS are used for billing of goods or services provided by the university to another internal department, reflecting income to the provider and expense to the customer. These transactions will be generated on an individual basis by the service department.
The internal billing requires account manager approval. requires account manager approval. Please note: For recharge/service centers, internal billings are only allowed for 67 accounts with approved rates or rate exceptions on file with University Cost Accounting. Contact the account fiscal officer with any questions regarding recharge centers. The service billing requires a contract between departments.
The invoice (INV) document is used to bill organizations outside the university, such as the IU Foundation, the IU Alumni Association, and other outside agencies.
Accounting Services processes accounts receivable deposits and assists departments with collections of their outstanding accounts receivable following the schedule below. Departments are responsible for steps 1 through 4. Accounting Services is responsible for steps 5 through 7.
|Days Past Due||Step||Required Action|
|15 days||Step 1||Organization contacts customer using “Friendly Reminder Letter – First Reminder." This is intended to let the customer know that the invoice is past due.|
|30 days||Step 2||Organization contacts customer by phone. This phone call is intended to enable the organization and the customer to identify and discuss any problems with the sale or merchandise or to identify reason for late payment.|
|45 days||Step 3||Organization contacts customer with “AR Friendly Letter – Second Reminder."|
|60 days||Step 4||Organization contacts customer by phone.|
|75 days||Step 5||Accounting services contacts customer by phone.|
|90 days||Step 6||Accounting services contacts customer with collection agency letter. This is intended to give the customer one last opportunity to pay prior to turning the invoice over to a collection agent.|
|120 days||Step 7||First placement of debt with collection agency.|