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
There are authorized and approved sales and service activities conducted on the campus (See UCR Campus Policy Number
300-66.). The wide variety of receivables generated by the various activities of the University results 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 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. The University has established the following policy and procedures to meet this need.


II.     POLICY & PROCEDURES-Accounts Receivable Billing and Collections


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, Business and Administrative Services 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.



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


1.     Students 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.



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

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



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 Vice Chancellor of Business and Administrative Services.



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 SAA.  For those departments who 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 (http://accounting.ucr.edu/general/subcode.html). Departmental Invoices must be reviewed by SBS to ensure that all pertinent information has been included on the invoice to be used



    1.     Originating Department:                  

a.     Must assure that appropriate revenue account is established.

b.    Ensure that an allowance is established for charge back of uncollectible debts to be charged back to FAU that received revenue.

c.     Must request any new detail codes needed for new types of charges through Accounting (http://accounting.ucr.edu/general/subcode.html).

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

e.     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.

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

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

2.     Student Business Services:

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

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

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

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

e.     Responsible for collection activities performed on accounts.

3.     Cashiering:

a.     Responsible for processing payments through Banner.

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

c.     Assist account holders with questions and problem resolution.

4.     Accounting:

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

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



Reports are generated on the last business day of the month and are available online through iReport (http://cnc.ucr.edu/ireport/) in the general SIS Monthly reports repository. Please contact your departmental 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 Student Business Services (sbsadmin@ucr.edu).



Billing Statements are generated on the 16th of each month (if the 16th falls on a weekend or holiday, then will occur on the following business day) and will show all new activity since 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 will be due the Friday before).


Late fees of $12.50 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 will be 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.



SBS recharges all departments who bill on SIS for mail and printing costs associated with mailing statements. This is done twice a year (usually in January and May) and is calculated using actual mail and printed costs incurred divided by a weighted average of the volume of activity billed by all departments who billed on SIS during the period of time associated with the charge.



·       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.

·       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 department’s account for 50% of any funds recovered after collection costs have been paid.


Please note that if an account has been placed with an external collection agency and finance charges have been assessed and it is then discovered a department is at fault for not canceling the debt, in addition to late fees, any finance charges incurred will be charged back to the department.



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.



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. Please see Campus Policy 200-02 for additional information.



·       Student Business Service webpage

·       iReport Home webpage

·       Establishing a New Subcode

·       UCR Policy 300-66:  Sales and Service Activities-Establishment and Budgetary Review

·       UC Learning Center 



Please send questions or comments via e-mail to sbsadmin@ucr.edu.