University Billings - University Invoices
REG 07.30.07
Financial Reporting and Accounts Receivables
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Authority: Vice Chancellor for Finance and Business
History: First Issued: November 1, 2001.
Additional References: University Controllers Website
Contact Info: University Controller (919-515-3824)
1. Purpose
University Invoices (Form JVS-3) are used to bill individuals, firms, or
organizations not affiliated with the University.
2. General Guidelines
Colleges, departments, and organizational units are required to use the standard
University Invoice (Form JVS-3) for all external billings unless written exemption
has been obtained from the University Controller. All receipts generated from
University Invoices must be forwarded to NC State University, Box 7203, Raleigh,
NC 27695-7203.
Due to the cost of processing University Invoices (Form JVS-3), charges
should be accumulated until they reach a minimum * of $50.00.
Units having special requirements should contact the Supervisor of University
Invoice Accounts Receivable at extension 5-2159.
3. Procedures
3.1. Billing/Payment Procedures:
Colleges, departments, and organizational units should prepare University
Invoices and send the yellow (General Accounting Office) copy to Accounts
Receivable (see page 6 for instructions). Instructions on the University
Invoice should state the payment terms are "Net 30 Days" and
ask the invoicee to send a check and the white copy of the invoice to
the * Accounts Receivable Unit, Box 7203. (Any foreign billings should
be requested to "Remit in U.S. Dollars". See Deposit of Funds,
Section A, Statement No. 3.3, Page 1). No alterations to the instructions
should occur. Accounts Receivable verifies the accuracy of the payment
and prepares a University Deposit Slip (Form JVS- 2).
3.2. Billings to State Agencies:
Recent enhancements to the State Controller's Cash Management Control System
(CMCS) require agencies/institutions to electronically transfer payments
over $50,000.00 from one state agency to another state agency. Until further
notice, billings for $50,000.00 or above must use this procedure. All departments
billing to other State Agencies should contact the Manager of General Accounting,
Extension 5-7497 to verify the agency's current status in submitting the
funds electronically. In preparing your University Invoice to these agencies,
please type "Send remittance electronically to NCSU Group #6030 via
the State Information Processing Services (SIPS) to the attention of Lou
Rosendahl".
The transfer in from other State Agencies will appear on your account as
an entry code 37 which will credit your account. This entry will not carry
a deposit slip document number but simply a unique reference assigned by
the General Accounting Section.
Accounts Receivable retains the original copy of the deposit slip. The
daily FAS screens will identify the invoice numbers of the collections in
the appropriate revenue category. Monthly reports (AM091) will itemize collections
including invoice numbers. Departments are encouraged to utilize this information
to assist in their collection efforts.
All requests to cancel or revise University invoices (Form JVS-3) must
be made in writing to General Accounting. The requests must include the
invoice number and justification for the cancellation or revision and be
authorized by a department head or business manager.
3.3. Invoice Collection Procedures:
Collections of University invoices are the responsibility of the department
which issues the invoices. Collection procedures and timing are specified
by state law and cash management procedures issued by the Office of State
Budget and Management.
Diligent efforts should be made to collect outstanding accounts as early
as possible after the 30 day allowable payment period has elapsed. State
law requires that unpaid accounts past due more than 90 days be turned
over to the Attorney General for collection. The Attorney General is the
only office that can authorize an account to be written off as uncollectible.
To assist departments in collecting receivables, the University Accounting
Office furnishes departments with an aged listing of outstanding University
invoices. Exhibit A (page 8), which lists receivables by department and
customer, will be provided to all departments on a monthly basis. Exhibit
B (page 9), which lists receivables by OUC and account number, will be
substituted upon request.
Based on this aging or other internal reports, appropriate written contacts
should be made with the customer. The University Accounting Office has
prepared three suggested model letters which departments may use to collect
past due accounts (see Exhibits C, D, and E, pages 10, 11, and 12). The
letters, which are designed to be issued at regular intervals, grow progressively
more demanding during a 90 day period. It is required that written notification
be sent to the debtor prior to turning an account over to the Attorney
General; therefore, the suggested letter shown as Exhibit E, or a similar
letter, must be sent to the debtor near the 90 day delinquent time period.
The University Accounting Office will identify accounts more than 90
days past due, and will automatically turn over such accounts to the Attorney
General for collection. The Accounting Office will be responsible for
monitoring the status of the accounts which have been turned over for
collection. It is the responsibility of the department to notify the General
Accounting Manager in writing prior to the invoice becoming 90 days past
due if an invoice should not be turned over due to receipt of partial
payments, disputed follow up will not be considered a valid justification
for not turning over an invoice.
3.4. Accounts Receivable Over 90 Days Report:
Each month an additional invoice aging report (Exhibit F, page 15) is
generated which lists only invoices that are 90 days past due. A thorough
review of these invoices must be completed by the responsible department.
The column provided for status codes should be updated and returned to
General Accounting, Box 7203, by the 15th of the month.
If this report is not returned, the invoices on the list will be turned
over to the Attorney General's Office for further collection efforts.
3.5. University Invoice (Form JVS-3) Aging Report Status Codes
The status codes shown on your aging report are described as follows:
AG - Attorney General (Account has been turned over for action by the
Attorney General),
CA - Collection Agency (Account has been turned over to a collection
agency),
HI - Hold Invoice (Invoice being held pending customer action per departmental
request. Unless arrangements have been made with General Accounting,
this invoice will be turned over to the Attorney General the following
month),
EI - Exception Invoice (Arrangements have been made with General Accounting
and the customer; invoice will be held for mutually agreed period),
*BA - Bankruptcy/Attorney General (Customer has filed bankruptcy and
account has been turned over to the Attorney General's Office),
*BC - Bankruptcy/Collection Agency (Customer has filed bankruptcy and
account has been turned over to a Collection Agency),
* **Note: If any Department receives a Notification of Bankruptcy, where
a University Invoice is involved, please send a copy of the Notification
of Bankruptcy immediately to Accounts Receivable, General Accounting, Box
7203, NCSU Campus. All communication should cease between the departments
and the companies who have declared backruptcy, the Accounts Receivable
Unit will forward the necessary documentation to the University Counsel's
office at which time the legal matters will be handled.
If further discussion concerning the status of your invoice is needed,
contact Valerie Ryan in the Accounts Revievable Unit at extension #5-2159.
Two additional collection procedures are provided by state statute. G.S.
143- 553(a) states that "all persons employed by an employing entity
who owe money to the state and whose salaries are paid in whole or in part
by state funds must make restitution of the amount owed as a condition of
continuing employment". The employee is allowed a reasonable period
of time to make the repayment. Employment shall be terminated if the employee
ceases to make payments or discontinues a good faith effort to make repayment.
Chapter A of the General Statutes authorizes the Department of Revenue to
assist claimant agencies, per request, in the collection of qualifying delinquent
accounts. The Revenue Department will identify those persons entitled to
individual income tax refunds of at least $50, and upon receipt of a final
certification of the debt from the respective claimant agency, set-off the
applicable amount. The Revenue Department charges a 15% collection fee on
amounts offset. To utilize either of these two procedures, it is necessary
to have the debtor's social security number. For this reason, the appropriate
number should be obtained prior to providing goods or services to an individual.
The University's Coordinator of Cash Management, who is also the Director
of the University Cashier's Office (extension
5-2986), should be contacted to determine the appropriate steps in handling
receivables that should be processed under G.S. 143-553. All other inquiries
concerning collection problems, delinquent accounts, or further clarification
of University Invoice (JVS-3) procedures should be directed to the Supervisor
of University Invoice Processing at extension 5-2159.
4. Form
Form JVS- 3, University Invoice, may be purchased from Central Stores.
5. Instructions for Completion of Form
5.1. University Invoice (JVS-3)
5.1.1. Enter name and address of person, firm, or organization being billed.
5.1.2. Enter office originating invoice.
5.1.3. Enter name of person preparing invoice and campus extension.
5.1.4. Enter Organizational Unit Code (OUC); must be 6 digits.
5.1.5. Enter date of invoice. Invoices should NOT be issued prior to the delivery
of goods or performance of services.
5.1.6. Identify service rendered, items sold, etc. Also identify any cooperative
agreement, specific contract, memorandum agreement, etc. under which the
invoice is being issued. The explanation should be worded so that an individual
outside the organization's department can understand the nature of the
transaction.
5.1.7. Enter total amount of invoice.
5.1.8. Enter appropriate financial code distribution. If a particular invoice
is deposited to two or more budget items, complete one line for each amount
to be deposited. The sum of the separate amounts must equal the total
invoice amount.
5.1.9. Enter total amount of invoice. This must agree with the total of item
7 above.
5.1.10. Terms are stated as net - 30 days. Payment terms other than "Net
30" must not be used without approval from the Director of Accounting
or the department will be required to cancel the invoice and reissue it
under standard University terms.
5.2. Distribution of Copies:
5.2.1. Original and first three copies to person or organization being billed.
5.2.2. All others are routed as designated on form.
6. Instructions for Completion of Forms
6.1. Example Collection Letter 1 (Exhibit C)
6.1.1. Enter name and address of person, firm, or organization billed.
6.1.2. Enter name of individual.
6.1.3. Enter University invoice number used on billing (Form JVS- 3).
6.1.4. Enter amount of invoice.
6.1.5. Identify service rendered, items sold, etc.
6.1.6. Enter number of days invoice is past due.
6.1.7. Enter name and telephone number of bookkeeper, accounting
clerk, or other appropriate contact person at the college/ department.
6.1.8. Enter address of Accounts Receivable Office, as shown. Payments of University
Invoices should never be sent directly to the college/department.
6.1.9. Enter name and title of individual sending letter.
6.2. Example Collection Letter 2 (Exhibit D)
6.2.1. Enter name and address of person, firm, or organization billed.
6.2.2. Enter name of individual.
6.2.3. Enter University invoice number used on billing (Form JVS- 3).
6.2.4. Enter amount of invoice.
6.2.5. Second reminder should be sent 30 days after date of first collection
letter.
6.2.6. Enter address of Accounts Receivable Office, as shown.
6.2.7. Enter name and title of individual sending letter.
6.3. Example Collection Letter 3(Exhibit E)
6.3.1. Enter name and address of person, firm, or organization billed.
6.3.2. Enter name of individual.
6.3.3. Enter University invoice number used on billing (Form JVS- 3).
6.3.4. Enter amount of invoice.
6.3.5. Third collection letter should be sent when invoice is 80 days past
due.
6.3.6. Enter telephone number of contact person at the college/department.
6.3.7. Enter name and title of individual sending letter.
