UCR Policies and Procedures

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Policy Title:                  Billing and Accounts Receivable Management

Policy Number:            200-16

Responsible Officer:

Associate Vice Chancellor of Business & Financial Services and Controller

Responsible Office:

Business and Financial Services - Student Business Services

Origination Date:


Date of Revision:


Date of Last Review:



Guidance Concerning Authority and Approval to Conduct Sales and Service Activities

I.        Overview

The University of California at Riverside (UC Riverside) conducts sales and services activities. UC Riverside Policy Number: 300-66 provides in the authorization and approval of these activities. The many receivables generated by these activities result in thousands of individual accounts representing, in total, millions of dollars. In order to effect early conversion of these receivables to cash and minimize credit losses, each UC campus must maintain a diligent program for managing receivables. The management function consists of granting credit, billing accounts, effecting collection, analyzing outstanding accounts (aging), and providing for bad debts. UC Riverside has implemented this policy with procedures to meet this need. 

II.         Policy and Procedures-Accounts Receivable Billing and Collections

              A.        General

Although cash for authorized sales should be collected whenever possible, credit may be granted in cases where no facilities for cash collection exist or non-collection of cash is deemed to be in the best interest of the University. In these cases, prudence with respect to the credit risk incurred must be observed at the time of transaction. 

Formal arrangements that require the extension of credit beyond 30 days must have the approval of the Vice Chancellor for Business and Administrative Services (VC-BAS) except when established University policies or regulations specifically provide authorization for such arrangements. Implicit in the granting of credit by campus departments is the intention that payment will be made in full upon receipt of an invoice. 

              B.        Granting of Credit

The granting of credit is not a primary function of the University of California; therefore, credit will be granted only as follows: 

                               1.                 Student Credit is granted to students as required for the administration of fines and the assessment of additional fees that may be determined to be applicable after the student registers. Credit is also granted to students in accordance with existing policies pertaining to student loans and deferred payment of fees.

                               2.                 General Public Credit may be granted to the general public (which may include students and employees) by departments that are authorized to provide services or products. These services or products are normally provided as an adjunct to instruction or research activities.

                               3.                Governmental units, foundations, and medical financial sponsors credit is automatically extended to governmental units, foundations, and medical sponsors during the time claims for reimbursement are outstanding. Diligence must be exercised to ensure timely billing and collection efforts to minimize the receivables arising from these claims. 

              C.        Departmental Billing

The department providing the service or product initiates billings to individuals and organizations. Billings must occur via the sundry debtor process. Student Business Services (SBS)/Cashiers is responsible for maintaining the accounts receivable, billing, and collection of these accounts for UC Riverside.

Note:  Billing related to contract and grant funds is performed by the Accounting Office - Extramural Funds section. 

              D.        General Billing Process Overview

The campus uses an integrated central billing system to manage billing and accounts receivable (Banner). Departments wishing to explore another system must receive written approval from the VC-BAS. 

              E.         Banner Billing

Banner billing is recorded on an accrual basis to accounts receivable and revenue at the time of billing. Billing access is granted by the departmental System Access Administrator (SAA). For those departments that wish to input their department sundry debtor bills on-line manually, it is recommended that authorized users complete Banner Navigation and Training through ucrlearning.ucr.edu.  

All billing processed through the Banner require detail codes. Detail codes identify the type of transaction and general ledger to which it will feed appropriately. Detail codes are requested through Accounting (https://accounting.ucr.edu/general-accounting/new-detailcode). Departmental invoices must be reviewed by SBS to help ensure that all pertinent information has been included on the invoice to be used.


III.        Roles and Responsibilities

              A.        Originating Department                  

                               1.                  Must assure that appropriate revenue account is established.

                               2.                  Ensure that an allowance is established for charge back of uncollectible debts to be charged back to the Full Accounting Unit (FAU) that received revenue.

                               3.                  Must request any new detail codes needed for new types of charges through Accounting (https://accounting.ucr.edu/general-accounting/new-detailcode).

                               4.                  Individual who is responsible for entering transactions in Banner must ensure accuracy and timeliness of billing, credit, or cancellations of account.

                               5.                  Review monthly Banner paid in full (BRSPAID) and outstanding receivables report (BRS-OUTSTANDING) on departmental accounts. This will alert departments to any accounts that are outstanding through Banner and may become potential chargebacks to their revenue account.

                               6.                   Reconcile departmental charges billed through Banner to general ledger on a monthly basis to ensure all revenue billed is properly recorded.

                               7.                  Must maintain any backup documents needed to prove accuracy or legally enforce the charge billed. 

              B.        Student Business Services

                               1.                  Responsible for maintaining integrity of Banner and monthly billing statement to account holders.

                               2.                 Responsible for responding to individual questions from account holders or departments and assist in problem resolution.

                               3.                 Responsible for monthly reconciliation of total Banner receivables to general ledger.

                               4.                 Responsible for aging of accounts and charge back to departments.

                               5.                 Responsible for collection activities performed on accounts.

              C.        Cashiering

                               1.                 Responsible for processing payments through Banner.

                               2.                 Monthly reconciliation of payment transactions from Banner to the general ledger.

                               3.                 Assist account holders with questions and problem resolution.

              D.        Accounting

                               1.                 Responsible of accuracy of FAU’s that departments are requesting be used to process transactions via detail codes onto Banner.

                               2.                 Oversight of transactions that feed from Banner into general ledger.


IV.        Reports

Reports are generated on the last business day of the month and are available online through iReport (https://o365ucr.sharepoint.com/sites/BFS/Support/ireport) in the general Student Information System (SIS) Monthly reports repository. Departments should contact their SAA for access. 

Each department billing on Banner should receive the following standard monthly reports by detail code: 

       Current Activity (BRS-NEW-BILLED) – Shows current month’s activity that was billed by the department. Departments should review and compare to general ledger to ensure that all charges billed on Banner are properly recorded and appear in general ledger.

        Bills Outstanding (BRS-OUTSTANDING) – Lists charges that are still outstanding and have not been paid by account, detail code, amount, and date billed. Departments should review these accounts monthly for potential chargebacks.

        Bills Paid (BRS-PAID) – Lists bills that were paid that month by account, charge billed, and amount.   

If a department has need for a report separate from the standard reports listed above, a request can be submitted to SBS (sbsadmin@ucr.edu).


V.         Billing Cycle

Billing Statements are generated on the 16th of each month (if the 16th falls on a weekend or holiday, then the statement is generated on the following business day) and shows all new activity since the last billing date. The bill is due on the 15th of the following month after billing has occurred (if the 15th falls on a weekend or holiday, then the bill is due the Friday before). 

A late fee of $25.00 per month will accrue on unpaid bills. If a department cancels a debt and late fees have accrued, the department needs to notify SBS (sbsadmin@ucr.edu). Returned paper or e-checks are assessed a $20.00 returned check charge and a hold will be placed on the account until the original check amount and returned check charge are paid in full.


VI.        Costs of Using the System

There is not a cost to use the system. 


VII.        Accounts Receivable Management

              A.        Chargeback of Sundry Debtor Bills

There is no central reserve for write off of bad debts. Therefore, if the bill cannot be collected, it will be charged back to the departmental account previously credited. Departments should plan for this in their budgeting process. Chargeback will occur when there has been no payment for a period of 6 months or more, and in the case of a student, they are no longer enrolled at UCR. SBS charges accounts back to departments twice a year (usually May and November) and will send a letter to the department listing the accounts and amounts that will be charged back.

             B.        Collection Efforts

While the account has been charged back to the department, Student Business Services will continue to try to collect on the debt. A hold will be placed on the account to prevent the debtor from receiving any transcripts or services from the University. All accounts over $50 with a social security number on file will be referred to an external collection agency and accounts over $10 will be submitted to the California State Franchise Tax Board. Student Business Services will credit the campus central funds for 50% of any funds recovered after collection costs have been paid. 

              C.        Student Loan Accounts Receivable

All matters related to student loan collection are handled by the Collection Department, Student Business Services. There are three categories of student loans: Student Emergency, Short Term, and Long Term. Each loan involves a promissory note. Student Emergency and Short Term loans are due and payable while the student is still on campus and have an established repayment schedule. If a student leaves campus and has not repaid an Emergency or Short Term loan, the account will be sent to an external collection agency or the California State Franchise Tax Board for collections. Long Term loans are converted to collectible status when the student borrower leaves campus.  

              D.        Bankruptcy on Accounts Receivable

All notices received by the University relating to bankruptcy proceedings (from individuals, businesses, or the court) should be forwarded to Student Business Services, Collection Department. UC Riverside Policy Number:  200-02 provides additional information.


VIII.        References

IX.        Feedback

  Questions or comments can be sent via e-mail to sbsadmin@ucr.edu.


X.         Revision History

The policy is reviewed and updated as needed by the Policy Owner.