Accounts Receivable Collection Process

Note: SFS 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.

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

• If charges remain unpaid for 120 days, SFS 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 SFS for help in resolving the situation.

Exceptions:

• If you are working with the account holder on payment resolution you can contact SFS 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 account holder, you will continue to see the past due charges on your Recommended for Write Off Report.

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

• In accordance with Accounting Manual 212 (PDF) and generally accepted accounting principles (GAAP), SFS will send a request to the Office of the Controller to write-off the past due debt. 
• Upon the Controller approval, SFS 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 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 SFS.
• SFS deducts its collection fee.
• The remainder is sent to the department via journal entries.