Extension of Credit Regulation 21.01.04 allows for the write-off of uncollectable accounts.
A write-off is a request to remove any uncollectible revenue from the sale of a good or services that is at least 1 year old from a department's account and reclass it as a bad debt expense. At no time is a department allowed to waive an uncollectable debt without submitting a write-off request. Departments may not reduce or cancel payments due from customers. This not only includes unpaid invoices, but also includes returned checks that have not been repaid.
TAMU - College Station
Invoice write-offs can only be requested at fiscal year end after one year of collection efforts or the receipt of a bankruptcy notice. The Accounts Receivable Write-Off Request form is due to Financial Management Operations, Sales and Receivables, MS 6000, attention to Stacie Sodolak, the first week of each August.
Write-off amounts should not exceed 10% of the total receivables billed for that particular fiscal year. If the percentage exceeds 10%, a detailed explanation must be attached and signed by the Department Head or designee.
Invoices can only be written off when the customer is an external customer. External customers are not members of the TAMU System.
The request must include the following information:
- Departmental procedures for collection of receivables (should be on file with Extension of Credit approval),
- Documentation that the collection procedures have been followed for the invoices being written off,
- Documentation/description of collection efforts to date,
- Documentation that customer has been placed on State Warrant Hold, and
- Copy of bankruptcy notice if applicable.
TAMU - Galveston and TAMU System Offices
The above process is the same. Forms can be emailed or mailed to Financial Management Operations.
Contact
Email ar@tamu.edu or send to:
Texas A&M UniversityFinancial Management Operations
Sales and Receivables
TAMU 6000
College Station, TX 77843