Days Past Due		Suggested Action
0-15 days	Step 1	Organization Contacts Customer with Friendly Reminder Letter. This is intended to let the customer know that the invoice is past due.
16-30 days	Step 2	Organization Contacts Customer by Phone-- This phone call is intended to enable the organization and the customer to identify and discuss any problems with the sale or merchandise or to identify reason for late payment.
31-45 days	Step 3	Organization Contacts Customer with a Billing Letter.
46-60 days	Step 4	Organization Contacts Customer by Phone
61-75 days	Step 5	Organization Contacts Customer with Billing Letter.
76-90 days	Step 6	Organization Contacts Customer with Collection Agency Letter. This is intended to give the customer one last opportunity to pay prior to turning the invoice over to a collection agent. *EXCEPTION FOR IUPUI DEPTS. - After completing suggested action steps 1 - 5 and the collection attempts have been unsuccessful, contact the IUPUI Accounting Office.
91-120 days	Step 7	1st Placement of Debt with Collection Agency

Timeline for Write-off
(Goal: By End of 1st Quarter)

• Receivable on the AR System: An organization using the AR system should write off an AR when the organization deems it uncollectable.
• Receivable recorded on Auxiliary Voucher: An auxiliary or service unit not using the AR system should write-off the AR when it deems it uncollectable or by auxiliary closing. Note: Each receivable being written off should have been communicated to the AR Supervisor in writing during the year (address noted below).
• Receivable recorded on BARS: The bursar will continue to use the auto process in the system on 6/30. Information should be submitted to the AR Supervisor by the end of final close (address noted below).
• AR Not Recorded in GL: These should be submitted to the AR Supervisor by the end of final close (address noted below).
• Address to Send Information to AR Supervisor:
  
  FMS
  Kathy Cochard
  Poplars 535
  Bloomington Campus

Once the account manager determines that a receivable is uncollectable, (s)he should initiate a credit memo to write off the receivable (each invoice that is deemed uncollectable needs to have its own credit memo initiated). Each credit memo generated routes to the fiscal officer for approval in the system. Please use the following steps to initiate a credit memo that write-off a receivable:

1. Enter Description: "To write off invoice."
2. Enter Customer Number
3. Enter Account Number: This should be the account number the invoice was generated on.
4. Object Code: Depending on the which method your organization is using, the object code that should be used should be 8950 (Allowance Method) or 5105 (Direct Method)
5. Amount: Enter the amount to be written off.
6. Ref Inv Num: Enter the invoice number that needs to be written off.
7. Attach a note to the credit memo: the note should document the reason for the write off and the age of the receivable.

In order to collect the write-off information for the trustees, the AR Supervisor will run an IUIE credit memo report based on object code 5105 and 8950 to gather the write offs for the letter to the trustees. Note: these object codes should only be used on the credit memo when an invoice is being written off.

The process for recording write-offs for auxiliary and service units will depend on which method to record the receivable the organization is using. Regardless of the method, however, the organization should send a letter to the AR supervisor identifying which invoices are being written off. An organization can send this letter to the AR supervisor anytime during the year-- you do not have to wait until the end of the year. All letters should be sent to the AR supervisor by July 31 for the previous fiscal year. Information can be sent via e-mail to: kjcochar@indiana.edu or through campus mail to: Kathy Cochard, Poplars 535

If an organization is using the accrual method to record the receivable, the following steps will address how the organization should write-off a receivable via the auxiliary voucher document:

1. The next month do not re-accrue the amount of the receivable.
2. Auxiliary or service unit will need to do an AV Doc with and Adjustment Type. Note: If adjustment is never done then income will have never been recorded, due to the automatic reversal. Contact FMS Auxiliary Consultant with questions.
3. Send write-off information yearly/quarterly/monthly to the AR supervisor identifying what is being written off. All amounts need to be gathered by auxiliary July 31 for the previous fiscal year.

If an organization is using the adjustment method to record the receivable, the following steps will address how the organization should write-off a receivable via the auxiliary voucher document:

1. Enter Description: To write off receivable.
2. Posting Period: The month the organization is writing off the AR (within the normal edits of the document)
3. Explanation: Further explanation of why the receivable is being written off.
4. AV Type: Adjustment
5. Enter Account Number: This should be the account number the invoice was generated on for the debit and credit amount.
6. Object Code:
   1. Debit object code: Either 8950 (Allowance) or 5105 (Direct)
   2. Credit object code: Either 8119 or 8117
   3. See table below for example
7. Amount: Enter the amount of the write off
8. Send a report to the AR supervisor identifying what is being written off. The AR Supervisor will run an IUIE report to help ensure that all write-off information has been properly gathered for the report sent to the trustees.

The following table identifies entries for the auxiliary/service unit not using the AR system based on the method of uncollectables that the organization chooses to use.

Failure to book accounts receivable in the general ledger is inappropriate. Please contact the AR Supervisor for assistance with booking.