REG 07.30.07 – University Billings – University Invoices
Authority: Vice Chancellor for Finance and Administration
History: First Issued: November 1, 2001
Contact Info: University Controller (919-515-3824)
PROPOSED REVISION TO: REG07.30.01
Rationale: Requesting all REGs be Repealed (Duplicate PRRs)
Review Process:
4/21/17_ AVC for Finance authorizes transmittal of PRR for review
4/21/17VC for Finance & Administration review
(Relevant NCSU committee or other body) review, if applicable
4/24/17General Counsel final review, if changes have been made
5/2/17EOM, or official with delegated authority to approve PRR
8/14/17University Council (review/notification), if applicable
NABoard of Trustees (review/notification), if applicable
1. Purpose
University Invoices (Form JVS-3) are used to bill individuals, firms, or organizations not affiliated with the University.
2. General Guidelines
Colleges, departments, and organizational units are required to use the standard University Invoice (Form JVS-3) for all external billings unless written exemption has been obtained from the University Controller. All receipts generated from University Invoices must be forwarded to NC State University, Box 7203, Raleigh, NC 27695-7203.
Due to the cost of processing University Invoices (Form JVS-3), charges should be accumulated until they reach a minimum* of$50.00. Units having special requirements should contact the Supervisor of University Invoice Accounts Receivable at 919/515-2159.
3. Procedures
3.1. Billing/Payment Procedures:
Colleges, departments, and organizational units should prepare University Invoices and send the yellow (General Accounting Office) copy to Accounts Receivable (see page 6 for instructions). Instructions on the University Invoice should state the payment terms are “Net 30 Days” and ask the invoicee to send a check and the white copy of the invoice to the * Accounts Receivable Unit, Box 7203. (Any foreign billings should be requested to “Remit in U.S. Dollars”. See Deposit of Funds, Section A, Statement No. 3.3, Page 1). No alterations to the instructions should occur. Accounts Receivable verifies the accuracy of the payment and prepares a University Deposit Slip (Form JVS- 2).
3.2. Billings to State Agencies:
Recent enhancements to the State Controller’s Cash Management Control System (CMCS) require agencies/institutions to electronically transfer payments over $50,000.00 from one state agency to another state agency. Until further notice, billings for $50,000.00 or above must use this procedure. All departments billing to other State Agencies should contact the Manager of General Accounting, 919/515-7497, to verify the agency’s current status in submitting the funds electronically. In preparing your University Invoice to these agencies, please type “Send remittance electronically to NCSU Group #6030 via the State Information Processing Services (SIPS) to the attention of Lou Rosendahl”.
The transfer in from other State Agencies will appear on your account as an entry code 37 which will credit your account. This entry will not carry a deposit slip document number but simply a unique reference assigned by the General Accounting Section.
Accounts Receivable retains the original copy of the deposit slip. The daily FAS screens will identify the invoice numbers of the collections in the appropriate revenue category. Monthly reports (AM091) will itemize collections including invoice numbers. Departments are encouraged to utilize this information to assist in their collection efforts.
All requests to cancel or revise University invoices (Form JVS-3) must be made in writing to General Accounting. The requests must include the invoice number and justification for the cancellation or revision and be authorized by a department head or business manager.
3.3. Invoice Collection Procedures:
Collections of University invoices are the responsibility of the department which issues the invoices. Collection procedures and timing are specified by state law and cash management procedures issued by the Office of State Budget and Management.
Diligent efforts should be made to collect outstanding accounts as early as possible after the 30 day allowable payment period has elapsed. State law requires that unpaid accounts past due more than 90 days be turned over to the Attorney General for collection. The Attorney General is the only office that can authorize an account to be written off as uncollectible.
To assist departments in collecting receivables, the University Accounting Office furnishes departments with an aged listing of outstanding University invoices. Exhibit A (page 8), which lists receivables by department and customer, will be provided to all departments on a monthly basis. Exhibit B (page 9), which lists receivables by OUC and account number, will be substituted upon request.
Based on this aging or other internal reports, appropriate written contacts should be made with the customer. The University Accounting Office has prepared three suggested model letters which departments may use to collect past due accounts (see Exhibits C, D, and E, pages 10, 11, and 12). The letters, which are designed to be issued at regular intervals, grow progressively more demanding during a 90 day period. It is required that written notification be sent to the debtor prior to turning an account over to the Attorney General; therefore, the suggested letter shown as Exhibit E, or a similar letter, must be sent to the debtor near the 90 day delinquent time period.
The University Accounting Office will identify accounts more than 90 days past due, and will automatically turn over such accounts to the Attorney General for collection. The Accounting Office will be responsible for monitoring the status of the accounts which have been turned over for collection. It is the responsibility of the department to notify the General Accounting Manager in writing prior to the invoice becoming 90 days past due if an invoice should not be turned over due to receipt of partial payments, disputed follow up will not be considered a valid justification for not turning over an invoice.
3.4. Accounts Receivable Over 90 Days Report:
Each month an additional invoice aging report (Exhibit F, page 15) is generated which lists only invoices that are 90 days past due. A thorough review of these invoices must be completed by the responsible department. The column provided for status codes should be updated and returned to General Accounting, Box 7203, by the 15th of the month.
If this report is not returned, the invoices on the list will be turned over to the Attorney General’s Office for further collection efforts.
3.5. University Invoice (Form JVS-3) Aging Report Status Codes
The status codes shown on your aging report are described as follows:
AG – Attorney General (Account has been turned over for action by the Attorney General),
CA – Collection Agency (Account has been turned over to a collection agency),
HI – Hold Invoice (Invoice being held pending customer action per departmental request. Unless arrangements have been made with General Accounting, this invoice will be turned over to the Attorney General the following month),
EI – Exception Invoice (Arrangements have been made with General Accounting and the customer; invoice will be held for mutually agreed period),
*BA – Bankruptcy/Attorney General (Customer has filed bankruptcy and account has been turned over to the Attorney General’s Office),
*BC – Bankruptcy/Collection Agency (Customer has filed bankruptcy and account has been turned over to a Collection Agency),
* **Note: If any Department receives a Notification of Bankruptcy, where a University Invoice is involved, please send a copy of the Notification of Bankruptcy immediately to Accounts Receivable, General Accounting, Box 7203, NCSU Campus. All communication should cease between the departments and the companies who have declared bankruptcy, the Accounts Receivable Unit will forward the necessary documentation to the University Counsel’s office at which time the legal matters will be handled.
If further discussion concerning the status of your invoice is needed, contact Valerie Ryan in the Accounts Receivable Unit at 919/515-2159.
Two additional collection procedures are provided by state statute. G.S. 143- 553(a) states that “all persons employed by an employing entity who owe money to the state and whose salaries are paid in whole or in part by state funds must make restitution of the amount owed as a condition of continuing employment”. The employee is allowed a reasonable period of time to make the repayment. Employment shall be terminated if the employee ceases to make payments or discontinues a good faith effort to make repayment. Chapter A of the General Statutes authorizes the Department of Revenue to assist claimant agencies, per request, in the collection of qualifying delinquent accounts. The Revenue Department will identify those persons entitled to individual income tax refunds of at least $50, and upon receipt of a final certification of the debt from the respective claimant agency, set-off the applicable amount. The Revenue Department charges a 15% collection fee on amounts offset. To utilize either of these two procedures, it is necessary to have the debtor’s social security number. For this reason, the appropriate number should be obtained prior to providing goods or services to an individual.
The University’s Coordinator of Cash Management, who is also the Director of the University Cashier’s Office (919/515-2986), should be contacted to determine the appropriate steps in handling receivables that should be processed under G.S. 143-553. All other inquiries concerning collection problems, delinquent accounts, or further clarification of University Invoice (JVS-3) procedures should be directed to the Supervisor of University Invoice Processing at 919/515-2159.
4. Form
Form JVS- 3, University Invoice, may be purchased from Central Stores.
5. Instructions for Completion of Form
5.1. University Invoice (JVS-3)
5.1.1. Enter name and address of person, firm, or organization being billed.
5.1.2. Enter office originating invoice.
5.1.3. Enter name of person preparing invoice and campus extension.
5.1.4. Enter Organizational Unit Code (OUC); must be 6 digits.
5.1.5. Enter date of invoice. Invoices should NOT be issued prior to the delivery of goods or performance of services.
5.1.6. Identify service rendered, items sold, etc. Also identify any cooperative agreement, specific contract, memorandum agreement, etc. under which the invoice is being issued. The explanation should be worded so that an individual outside the organization’s department can understand the nature of the transaction.
5.1.7. Enter total amount of invoice.
5.1.8. Enter appropriate financial code distribution. If a particular invoice is deposited to two or more budget items, complete one line for each amount to be deposited. The sum of the separate amounts must equal the total invoice amount.
5.1.9. Enter total amount of invoice. This must agree with the total of item 7 above.
5.1.10. Terms are stated as net – 30 days. Payment terms other than “Net 30” must not be used without approval from the Director of Accounting or the department will be required to cancel the invoice and reissue it under standard University terms.
5.2. Distribution of Copies:
5.2.1. Original and first three copies to person or organization being billed.
5.2.2. All others are routed as designated on form.
6. Instructions for Completion of Forms
6.1. Example Collection Letter 1 (Exhibit C)
6.1.1. Enter name and address of person, firm, or organization billed.
6.1.2. Enter name of individual.
6.1.3. Enter University invoice number used on billing (Form JVS- 3).
6.1.4. Enter amount of invoice.
6.1.5. Identify service rendered, items sold, etc.
6.1.6. Enter number of days invoice is past due.
6.1.7. Enter name and telephone number of bookkeeper, accounting
clerk, or other appropriate contact person at the college/ department.
6.1.8. Enter address of Accounts Receivable Office, as shown. Payments of University Invoices should never be sent directly to the college/department.
6.1.9. Enter name and title of individual sending letter.
6.2. Example Collection Letter 2 (Exhibit D)
6.2.1. Enter name and address of person, firm, or organization billed.
6.2.2. Enter name of individual.
6.2.3. Enter University invoice number used on billing (Form JVS- 3).
6.2.4. Enter amount of invoice.
6.2.5. Second reminder should be sent 30 days after date of first collection letter.
6.2.6. Enter address of Accounts Receivable Office, as shown.
6.2.7. Enter name and title of individual sending letter.
6.3. Example Collection Letter 3(Exhibit E)
6.3.1. Enter name and address of person, firm, or organization billed.
6.3.2. Enter name of individual.
6.3.3. Enter University invoice number used on billing (Form JVS- 3).
6.3.4. Enter amount of invoice.
6.3.5. Third collection letter should be sent when invoice is 80 days past due.
6.3.6. Enter telephone number of contact person at the college/department.
6.3.7. Enter name and title of individual sending letter.