Accounts receivable balances over 12 months old lacking current productive activity are to be written off. Amounts less than 12 months old should be written off if collection efforts have been exhausted It is encouraged that delinquent non-student accounts be turned over to external collection and/or reporting agencies after all collection efforts have been exhausted by the department and by any respective campus office charged with collecting delinquent accounts.

On or before August 31st all organizations must supply FMS Accounts Receivable with a detailed listing of all write-offs for the prior fiscal year for review by the Board of Trustees. These reporting requirements will be handled centrally for the C&G fund group by Contract & Grant Administration in FMS. Information required includes:

1. Total Credit Sales for the year
2. June 30 Aged Receivables Report
3. List and justification for retaining any accounts over 12 months old without productive activity
4. Information detailing write-offs:

1. Customer name and address
2. Invoice number
3. Invoice date
4. Original invoice amount and remaining unpaid balance
5. Explanation of reason for write-off

Allowance and write-off procedure must follow Accounts Receivable Standard Operating Procedure 6.0.

Aged Receivable Report June 30 Aged Receivable report should include Customer Name and outstanding balance, aged receivables for Current, 30, 60, 90 and 120 days. Report should be system generated by FIS Accounts Receivable or by accounts receivable system previously approved for use by FMS in consultation with campus administration.

Average Accounts Receivable should represent the sum of the prior Fiscal Year’s twelve months Accounts Receivable balances divided by twelve.

External Customers in addition to entities such as IBM, General Motors, etc, this includes Student Organization Accounts, the Indiana University Foundation, and Greek housing orgs. In addition, for business transacted outside the scope of employee/employer relationship IU faculty and staff are considered external. Items covered via payroll deduction are not included.

Internal Controls is the system of processes and procedures established to ensure that transactions are accurately, properly and timely recorded thus providing accurate and reliable financial data and assets are safeguarded.

Non-student accounts receivable are charges billed outside of the bursar system to students, and charges billed to external parties for goods and services.

Productive Activity is having a recent (within 30 days) promise to pay, in writing and signed by the debtor; an active payment plan is in place on the account; or payment activity within the past 120 days.

6.0, See Accounts Receivable Standard Operation Procedure 6.0, Allowance for Doubtful Accounts and write-offs for Non-Student Accounts Receivable

I-450, Establishing and Generating Revenue Producing Activity (RPA)

VI-100, Accepting Electronic Payments

VI-81, Collection Agency Place of Indiana University Accounts