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Accounts Receivable Collection Process

See all the steps in the accounts receivable collection process.

Note: Follow this process when your department bills an outside entity for goods or services your department has provided.

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Your department sets up an account through University Billing Services (UBS).

To set up a new account, follow the steps on How to Obtain a New ISIS Entity Account ID Number.

Your department invoices the outside entity.

Follow the steps for How to Process a UCSD Invoice.

UBS sends monthly billing statements.

UBS sends monthly billing statements to all account holders (outside entities) who have an outstanding balance. Refer to the Billing Statement Calendar for scheduled billing dates.

Note: UBS will generate monthly Billing Statements to account holders with outstanding balances/credits as a reminder of account status.  This statement can/will be used as a dunning notice for legal collection processes.

Your department identifies any unpaid transactions.

Regularly monitor your unpaid transactions with accounts receivable management tools.

Monthly, UBS notifies departments of unpaid charges that are 120+ days overdue.

UBS generates a notice to departments for review of Aging Report. This list contains all unpaid invoices and charges on AR ISIS.

  • If charges remain unpaid for 120 days, UBS will also send the department a Recommended for Write-Off Report (RFWO). Review this report, contact the entity and attempt to collect these receivables. Note: Stop doing business with the entity until past due debt(s) are paid in full. 
  • If there are any discrepancies, contact UBS for help in resolving the situation.

Exceptions:

  • If you are working with the outside entity on payment resolution you can contact UBS to request a hold for a short time. (Unpaid transactions will continue to appear on your Unpaid Charges Report.)
  • If new charges are assessed to the customer, you will continue to see the past due charges on your Recommended for Write Off Report.

UBS generates past due notices and payment request letters.

  • UBS will monitor for payment and responses from debtor.
  • UBS will continue to send monthly Billing Statements to account holders with outstanding balances/credits.

UBS asks the Office of the Controller to write-off the debt.

  • In accordance with Accounting Manual 212 (PDF) and generally accepted accounting principles (GAAP), UBS will send a request to the Office of the Controller to write-off the past due debt. 
  • Upon the Controller approval, UBS will write-off the debt in ISIS AR and refer the account to an outside collection agency. This step:
    • Clears the department's open receivables account.
    • The department's ledger is debited by reversing the credit that was originally posted to the department's revenue ledger. 
    • By the account being written-off, this will represent a loss to the charging department and UCSD.

The contracted collection agency tries to collect.

  • The contracted collection agency continues to try to collect the unpaid balance.
  • If the collection agency is successful, the agency deducts a collection fee, then sends the balance to UBS.
  • UBS deducts its collection fee.
  • The remainder is sent to the department via journal entries.

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