Collections

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Collections

Collections: Flowchart

Scope

This procedure covers collecting overdue customer payments.

This procedure does not cover:

processing delinquent customer payments

System References

Receipts-Entering and Applying

View – AR Information

Reports-Submit and View Standard Reports

Collections-Customer Calls

Policy

Collection action on overdue accounts is governed by U.Va. policy V.B.2 Credit and Collection. A Record-a-Call is required to record the results of collection efforts for each overdue customer account, credit review findings, and changes in customer credit privileges.

Responsibility

The AR Manager is responsible for:

mailing dunning notices and delinquency notices to overdue customers
referring overdue customers to third-party collectors
determining whether to write off overdue balances

Distribution

AR Administrator^*

AR Collections Specialist^*

AR Manager^*

Ownership

The AR Manager is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

This activity is performed monthly after the Accounts Receivable month-end close.

Depending on the number of delinquent accounts and the type of collection activity required, it may take more than one working day to complete this activity.

The job title Collector refers to the following:

AR Administrator
AR Manager
AR Collections Specialist

Collector

1. Begin the collections process after month-end close.

2. Determine whether any accounts require collection.

Receivables
N ® Control ® Requests ® Run
Reports

Refer to Reports-Submit and View Standard Reports.

Select the following reports:

Aged Trial Balance
Past Due Invoice Report
Disputed Invoice Report

Select the appropriate options to generate a report of customer balances of more than $1 and more than 30 days overdue.

Review the aged receivables report to identify accounts requiring collection action.

Collection action is required if there are any customer account balances of more than $1 and more than 30 days overdue.

If there are any collection accounts, goto task #3. Otherwise, end of activity.

3. Review the customer's credit status.

Receivables
N ® Collections ® Customer Accounts
Customer Accounts

Refer to View – AR Information.

Select: Customer Accounts

Print a report of the customer master file.

4. Determine whether the payment has been received but not entered in the system.

Check the Receipts Log from the AR Receipts Specialist.

If the payment has been received, goto task #5. Otherwise, goto task #6.

5. Complete a Record a Call to detail the payment.

Refer to Collections-Customer Calls.

End of activity.

6. Determine collection action.

Refer to V.B.2 Credit and Collection

7. Perform the prescribed action.

Send dunning letter (generally three letters will be sent before the next action)
Set-Off Debt Collection procedures, or
Comptroller's Set-Off procedures, or
Collection agency procedures

Proceed on a case-by-case basis.

8. Complete a Record a Call to detail the action taken.

If the customer reported an invoice error, goto task #9.

If the customer reported a payment error, goto task #12. Otherwise, goto task #15.

9. Contact the AR Billing Specialist responsible for the invoice.

The requesting department or AR Billing Specialist responsible for the invoice must determine whether the invoice error is valid.

If the invoice error is valid, goto task #10. Otherwise, goto task #11.

10. The AR Billing Specialist should make corrections to the invoice.

The requesting department without access to Accounts Receivable will advise Accounts Receivable to make the corrections.

End of activity.

11. Complete a Record-a-Call to detail the action taken.

Goto task #15.

12. Contact the AR Billing Specialist responsible for the invoice.

The requesting department or AR Billing Specialist responsible for the invoice must determine whether the receipt application is incorrect.

13. View the customer account for incorrect application of the receipt and unidentified receipts.

Refer to View – AR Information.

If receipt was misapplied, unapplied, or found as unidentified, goto task #14. Otherwise, goto task #15.

14. Make the required receipt application.

End of activity.

15. Continue collections efforts until all collection actions have been exhausted.

End of activity.

Effective: 08/13/04

Revision: 2

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