Handbook of Business Procedures

5.3.1. CENTRALIZED RECEIVABLES

A. Introduction

The Centralized Receivables (CR) system is made up of the RMM commands in *DEFINE and is used to account for tuition payments and goods or services provided by The University of Texas at Austin. CR is used to maintain detailed records of customers’ accounts receivable transactions and to post payments from customers through various university websites.

B. Departmental Use of the Centralized Receivables (CR) System

A department wishing to use the CR system to post bills, payments, and transfers for their activity may send an e-mail to Student Accounts Receivable (SAR) at sar@austin.utexas.edu to obtain a CR questionnaire. SAR will contact the department to assist them with billing code setup.

Prior to the setup, SAR will train key departmental personnel on the various CR commands. See the Centralized Receivables training slides for more details. Departments are responsible for adhering to university policies when using CR to create bills.

C. Collection of Outstanding Bills

Each department using the CR system is responsible for collection of unpaid bills and/or reversal of bills for its activities. Departments are encouraged to send letters, e-mails, or periodic statements to notify people of outstanding debts owed in order to increase collection rates. An allowance for doubtful accounts will be recorded annually for all outstanding receivables. The allowance will be calculated as follows: 85 percent of bills one- to two-years old and 100 percent of all bills two-years old or older. For more information, see the Handbook of Business Procedures 5.3.3. Other Accounts Receivable.

D. Financial Holds

Student accounts that are not paid by the due date usually result in a financial hold, which prevents receipt of university services, including registering for class, obtaining new institutional loans, and receiving diplomas. The department can elect whether or not to implement financial holds for unpaid bills. The department may also choose to waive a hold. A bill contested by a student may be temporarily waived pending investigation of the amount owed. After review, the department may reverse the bill, or the bill will automatically be reinstated on the waiver date.

Part 5. Sales of Goods and Services - Table of Contents