The Billing Departments will be responsible for any Accounts Receivable (AR) balance that is left unresolved for more than 9 months from the date of sale.
Procedure to Collect Unpaid Accounts Receivable
The Sales and Receivables department will mail out monthly Past Due notices on all unpaid AR balances. They will also make monthly personal contact with customers once the ARs reach 61 days past due from date of sale.
All feedback from customers resulting in the status of the unpaid AR being considered "in dispute" will be sent to the billing department for their information and potential resolution. If the dispute remains unresolved within 3 months of the dispute notice, the AR will be reversed. See Procedure to Reverse Unpaid Accounts Receivable below for details.
Sales and Receivables will send monthly reports to the billing departments that show all outstanding ARs and their aging. It is the billing department's responsibility to use this report to help ensure the unpaid AR balances are resolved. Monthly aging reports are also sent to all TAMU System member customers. When the aging of an AR reaches 181 days, a report is sent to each TAMU System member customer's CFO for review.
Procedure to Reverse Unpaid Accounts Receivable
Sales and Receivables will perform monthly reviews for possible reversals on all unpaid ARs that are 9 months old or older from the date of sale.
Please note that Sales and Receivables will only reverse unpaid ARs due from other TAMU System Members. Unpaid ARs due from external customers must follow the year end write off process.
A memo from Sales and Receivables will be sent to inform the billing departments with a listing of the potential unpaid ARs to be reversed.
If full payment is not received within 30 days from the date of the memo, a reversal will be placed on the unpaid AR by the month-end close date. The reversals will appear as negative revenue and will reduce the fund balance on the assigned billing credit account. The reversals will be coded with "ARR" FAMIS batch reference and have the description of "Invoice Reversal".
If collection of the unpaid AR is made by the billing department after the reversal date, then the billing department should deposit the funds and recognize as revenue at that time. These funds do not need to be sent to Sales and Receivables since the ARs were reversed from the AR module in FAMIS.