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Office of the University Controller Indiana University

5.0 - Write-Off Reporting

SUBJECT:

Annual Write-off Reporting Requirements

SOURCE:

Non Student Accounts Receivable, Financial Management Services

DATE

OF ISSUE:

December 2004

LAST REVISION:

March 2019

ARSOP NO:

5.0

RATIONALE:

Per Indiana University Policy FIN-ACC-500, all invoices written-off during the year must be submitted and reported to Accounts Receivable on an annual basis for review by the Board of Trustees.

ARSOP:

Indiana University Policy FIN-ACC-500 states Accounts Receivable balances over 12 months old lacking current Productive Activity are to be written off. Debts may be written-off prior to 12 months if they are coded as deceased, bankrupt, or if collection efforts have been exhausted.

Kuali Financial System (KFS) Accounts Receivable Invoice Write-off Reporting:

Billing units who use the KFS Accounts Receivable module for all of their invoicing and write-offs do not need to submit a write-off report at year-end. Non Student Accounts Receivable extracts KFS Customer Invoice Write-off (INVW) reports and Customer Aging Reports from IUIE on July 1st.

Billing units using KFS Accounts Receivable must submit a list of open invoices including justification to Non Student Accounts Receivable for retaining any accounts over 12 months old with/or without productive activity. Otherwise, all invoices that will be aged out to 365 days old as of June 30th must be written off by the billing unit at minimum seven business days prior to June 30th.

Sample Invoice Justification Report:

Auxiliary Units Write-off Reporting: 

To alleviate duplication of effort, Auxiliary units may include their write-off reports with their year-end Balance Sheet backup . Separate tabs should be included in the Balance Sheet Backup workbook for the following:

1. Total Credit Sales for the year and June 30th Aged Receivables Report (System generated PDFs and Excel exports are acceptable.)

Example:

Credit Sales = $10,250.00

Aged Receivables Report

2. Information detailing write-offs:

  • Customer name
  • Invoice number
  • Invoice date
  • Original invoice amount & remaining unpaid balance
  • Explanation of reason for write-off

Example:

Exceptions to this standard operating procedure require the approval of the Controller, Chief Accountant or Director of Non-Student Accounts Receivable.

DEFINITIONS:

Aged Receivable Report as of June 30 should include customer name and outstanding balance, aged for current, 30, 60, 90, and 120 days. Report should be system generated by KFS accounts receivable or by accounts receivable system previously approved for use by Auxiliary Accounting in consultation with campus administration.

Productive Activity is having a recent (within 30 days) promise to pay, in writing and signed by the debtor, or a current payment plan in place on the account. Additionally, Non-Student AR requires that all non-student payment plans have payment activity within 90 days of the plan effective date of the payment plan, or within 90 days of the invoice aging to 365 days old, unless otherwise stated in the terms and conditions of payment plan.

CROSS

REFERENCES:

Indiana University Policy FIN-ACC-500

RESPONSIBLE

ORGANIZATION:

All billing units reporting non student accounts receivable