These procedures ensure that accounts receivable are recorded accurately, completely, consistently and in a timely way within each business unit with proper internal controls in place.
They apply to all faculties, departments and ancillary operations with no exceptions.
Invoices are issued for goods sold and/or services rendered under signed contracts between UBC and third parties. It is important to note that only certain UBC departments are authorized to enter into contracts on behalf of UBC.
Please refer to the University’s Signing Resolutions for a listing of eligible signing authorities.
UBC has adopted a decentralized billing and receivables approach. Units have the option to use the central ARBI module in FMS.
Billing and Receivables Procedures
- Invoices should reflect the terms of the underlying agreement.
- Appropriate taxes, GST/PST, should be charged.
- Invoices should be tracked to ensure payment is received. The tracking can be manual or Revenue Accounting can be contacted to review a central software solution.
- Each quarter, or at minimum by March 31, outstanding invoices should be summarized and posted to Accounts Receivable (AR) (FMS GL Codes 131000-135000).
- Departments should be able to produce an Aged Receivables Detail Report that supports the receivable balances.
- Review balances aged over 30, 60 and 90 days.
- Follow up payments with customers.
- Assess collectability of invoices over 120 days.
- Review uncollectible accounts with the immediate supervisor and consider collection options.
- Setup allowance for doubtful account if applicable.