purpose of this policy is:
establish guidelines by which credit is extended to external customers
of the University
on a consistent
manage the extension of credit within the various departments or units
of the University
minimize the cost of collecting accounts receivable;
maximize the University
of Regina’s cash flow.
policy applies only to external customer accounts receivable of the University
tuition and fees receivable). Research
contracts and grant receivables will be monitored separately by the
Financial Analyst of Research/Special Projects in Financial Services.
Credit to Customers
All University departments that provide goods and/or services to customers
on a credit basis or are involved with invoicing sales of goods or
services are required to ensure that all transactions of this nature flow
through Accounts Receivable in Financial Services. For more
information on invoicing, please see policy 30.25.05:
'Invoicing a Customer'.
are directed to send all payments directly to Accounts Receivable in
All revenues from invoicing are credited to the originating
department upon completion of the invoice.
the event a payment is mistakenly sent to the originating department, it
should be forwarded immediately to Accounts Receivable in Financial Services for proper
processing and receipting. If payment is mistakenly posted to a
FOAPAL account instead of being forward to Financial Services, it will be
reversed and posted to the respective vendor account.
improve the University’s legal position for account collection, it is
recommended that, where possible, a formal contract or written agreement
be signed whenever goods or services in excess of $10,000 are provided on
a credit basis.
Where no written agreement exists and the value of the goods or
services is in excess of $10,000, prior approval from the Financial
Analyst of Treasury/Capital (337-3292) in Financial Services is
required in order to grant credit to a customer.
In certain circumstances, a deposit from the customer may be
required. Invoices to obtain a deposit payment are acceptable and
University’s standard term of payment is 30 days from the invoice date.
Extension of credit beyond the 30 days payment term may only be
granted when justified by unusual circumstances.
Any arrangements to extend the payment terms must be documented in
writing with the specific credit terms shown on the face of the invoice.
All departments must receive prior approval from the Financial
Analyst of Treasury/Capital (337-3292) before any extended payment terms are offered to
addition, with any invoice that is more than 30 days overdue, the
University, with proper notification, reserves the right to offset the
amount owed to the University by the customer against any outstanding
payments the University owes the customer.
for Granting Credit Privileges
decision to grant credit to a customer will take into account the
WILL NOT be granted to individuals or to customers making one-time
purchases of goods or services. These
types of purchases must be paid by cash, cheque or credit card. No
exceptions will be made in this instance as the excess administration time
required for processing these invoices is not economically feasible.
credit of greater than $1,000 is requested, a credit application must be
completed and approved by Accounts Receivable in Financial Services before any credit is extended
to a customer.
of Accounts Receivable
Accounts Receivable in Financial Services initializes any
collection efforts that may be required (ie. phone calls, reminder
notices, etc.) In
the event that a customer disputes a charge, the appropriate department
head will be responsible for resolving the disputed item(s).
month, Accounts Receivable sends out monthly statements
showing the outstanding balance due along with current month transactions.
If a receivable account is not paid within 60 days, the customer is
either contacted by phone or sent a reminder letter.
If the account remains outstanding after 90 days, with the consent
of the originating department head, Accounts
Receivable will send a final notice letter advising the
customer if the balance is not paid within 30 days, the account will be
forwarded to our collection agency and/or legal action may be taken and
any further credit privileges will be terminated.
list of accounts where final notice letters are sent will be provided to
each department from which the charges originated.
service charge will be levied on all external accounts receivable payments
that are returned by the bank as NSF (non-sufficient funds).
In the absence
of a legitimate dispute, credit privileges will be terminated immediately
where customers have not responded to reminder notices or final notices
for settling their outstanding debts to the University