|[an error occurred while processing this directive]||
[an error occurred while processing this directive]
ACCOUNTS RECEIVABLE - DEBT FOLLOW-UP
Departments are responsible for the issuing of Monash University tax invoices, with funds being credited to the respective Departmental account once the invoice is entered into SAP. Normal payment terms included on all Monash University invoices are 30 days.
The timely follow-up and collection of all outstanding debt is important to maintain normal cashflows of the University and minimise the bad debt experience. It is also important therefore that Departments must not raise invoices where there is little prospect of payment being received within 30 days.
All Departments are responsible for their outstanding debts and are therefore expected to participate in the follow-up process.
A report identifying outstanding debts for each Cost Centre is available in SAP (transaction ZF1R). Each Department should monitor this regularly and input comments relating to the follow-up being undertaken and reasons for nonpayment. Refer to SAP Help for further instructions on how to enter comments against a debt.
The person responsible for the follow up of debtor invoices will receive monthly reports identifying invoices outstanding for periods of 60, 90 and 120 days plus categories with the person then expected to follow-up with the debtor by phone calls and written requests for payment.
Should a debt not be collected within 120 days, that debt together with all other amounts owing by that debtor will be written back against the Department's income. Heads of Department will receive a monthly report advising details of all debts to be written back. Departments are still excepted to continue seeking payment from the debtor for those debts written back and will receive the income when paid.
Treasury and Corporate Receivables monitor the University's outstanding debts and the collection process and will assist Departments with the follow-up process. Records will be maintained of those debtors who continually fail to pay their accounts within a reasonable time and will advise Faculties/Departments accordingly.
Where considered appropriate, Corporate Receivables may also institute formal debt collection proceedings to recover debts. Costs associated with this will be for the account of the Faculty/Department.
Policy owner: Geoff Murray x 56317
Last updated: 4 June 2003