A “write-off” is defined as a transaction that removes an account which has been determined to be uncollectible from the University’s financial accounting records. Writing-off the debt for accounting purposes does not discharge the debt; the debt is still owed to the University, but is no longer reported on the University’s ledger as a receivable. Written-off receivables eligible for the Commonwealth debt setoff program must continue to be submitted.
Writing-off accounts is an annual process between the months of March-June. Accounts are reviewed year-round and collection efforts focus on hindering invoices from becoming “uncollectible.”
While there are many factors that determine whether an invoice may be written-off, there are a few characteristics that are generally considered:
- Age: When was the debt incurred and how long has it remained delinquent?
- Amount: How much was the original debt?
- Payment Activity: Have there been any payments received on the invoice?
- Contact: Has there been discussion with the customer, or promises of payment?
When an invoice is written-off, it is reversed in the Integrated System, which causes the original “credit” to be removed from the Billing Departments’ GL account.
Accounts Receivable (AR) will maintain collection efforts on written off receivables by continuing to submit the debts to the Set-Off Debt Collection (SODC) program and/or assign the debts to a collection agency, if eligible.
For additional information about the University of Virginia's Accounts Receivable Department, please contact us at: , or call 434-924-7180, FAX 434-924-1034.