1.0 Policy Purpose
This policy outlines the administration of Brown University Customer Accounts Receivable, including the requirements for extending Credit, invoicing, collection, and write-offs.
2.0 To Whom the Policy Applies
This policy applies to all University departments that provide goods and/or services to Customers and invoice for those goods and/or services.
3.0 Policy Statement
All University departments that provide goods and/or services to Customers and invoice for those goods and/or services, must use the central system, Workday. This process, Customer Accounts Receivable, ensures that all receivables are appropriately recorded to the University general ledger.
3.1 Extending Credit
University departments extending Credit must do so based upon sound business reasoning and in accordance with this policy. Prior to extending Credit, Customer information must be secured to establish a Customer Profile for effective billing and collection.
3.2 Invoicing
Financial Services provides users with training on the Workday Customer invoicing process and additional guidance as needed for processing invoices for goods and/or services provided by Brown University departments to Customers.
All revenues from Customer Accounts invoicing are credited to the originating department(s) upon issue of the invoice.
All invoices will be issued electronically.
3.3 Payments
University departments must direct Customers to make all payments to Brown University in accordance with the University Cash and Check Handling Policy.
3.4 Collection
Financial Services is accountable for Customer Accounts Receivable and will perform all collection activity.
3.5 Outstanding Receivables and Write-Offs
Customers with outstanding uncollectible receivables and those with a write-off will be placed on hold. No further business or extension of Credit may be provided to that Customer until funds have been collected.
4.0 Definitions
- Accounts Receivable:
-
The balance of money due to a firm for goods or services delivered or used but not yet paid for by Customers.
- Credit:
-
The ability of a Customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
- Customer:
-
Organizations, companies, or individuals who owe money to the University for goods and/or services.
- Customer Profile:
-
An electronic record of Customer data as it relates to billing and payment.
- Write-Off:
-
To cancel the record of a bad debt; acknowledge the loss of or failure to recover an asset.
5.0 Responsibilities
All individuals to whom this policy applies are responsible for becoming familiar with and following this policy. University supervisors and employees with student oversight duties are responsible for promoting the understanding of this policy and for taking appropriate steps to help ensure and enforce compliance with it.
University Departments Extending Credit: Utilize sound business reasoning for extending Credit to Customers by considering multiple facts about the Customer, including but not limited to, Customer creditworthiness, potential for increased sales opportunities, offering a competitive advantage, retaining Customers and developing loyalty, improving cash flow management, and forming strategic partnerships.
6.0 Consequences for Violating this Policy
Failure to comply with this and related policies is subject to disciplinary action, up to and including suspension without pay, or termination of employment or association with the University, in accordance with applicable (e.g., staff, faculty, student) disciplinary procedures.
7.0 Related Information
Brown University is a community in which individuals are encouraged to share concerns with University leadership. Additionally, Brown’s Anonymous Reporting Hotline allows anonymous and confidential reporting on matters of concern online or by phone (877-318-9184).
The following information complements and supplements this document. The information is intended to help explain this policy and is not an all-inclusive list of policies, procedures, laws and requirements.
7.1 Related Policies
7.2 Related Procedures
N/A
7.3 Related Forms:
7.4 Frequently Asked Questions:
N/A
7.5 Other Related Information
Policy Owner and Contact(s)
Policy Owner: Vice President for Finance and Administrative Services & Chief Financial Officer
Policy Approved by: Vice President for Finance and Administrative Services & Chief Financial Officer
Contact Information:
Policy History
Policy Issue Date:
Policy Effective Date:
Policy Update/Review Summary:
Policy was put into new University standard format.
Previous policy version(s) superseded by this policy:
- Customer Accounts Receivable, Last Updated: July 30, 2021
- Customer Accounts Receivable, Effective Date: September 2018