Collection Process for RESEARCH Receivables

  • Applicable to RTA , PRJ and Claim type billings

Statements are sent to customers with RTA, PRJ, and Claims type billings on 4th business day.

1. Thirty (30) days after invoice due date:

Accounts Receivable contacts the customer/sponsor by email (CC Principle Investigator (PI) & invoice requestor/administrator) regarding the payment status of unpaid invoice(s). Accounts Receivable follows up with Research Accounting to discuss items delaying payment.

2. Sixty (60) days after invoice due date:

Accounts Receivable continues to follow up with customer/sponsor by email (CC PI, invoice requestor/administrator, department head & manager, financial operations).

3. Ninety (90) days after invoice due date:

Accounts Receivable sends an email to customer/sponsor (CC PI, and invoice requestor/administrator, department head, manager, financial operations, and associate director, AR & Fin Ops).

Separate email - advise the PI, and invoice requestor/administrator that the Allowance for Doubtful Account (AFDA) entry for the balance of the outstanding invoice will be created at 180+ days past due.

Report to Associate Dean of Research by faculty, outlining outstanding amounts by aged category.

An option for Associate Director of Research /Department Head to suspend projects with outstanding receivable to minimize the potential bad debt that could further impact Fund 10.

4. 180 days after invoice due date:

Accounts Receivable will create Allowance for Doubtful Account (AFDA) entry to the department initiating the invoice. Amount is expensed to Fund 10. The AFDA entry is also sent to the Finance Partner.

Outstanding balances that have been deemed “uncollectible” to be written off.

  • If feasible, the account may be turned over to a collection agency.
  • If the account is to be written off, the PI, Department Head, or Associate Director of Research to provide the appropriate instructions.

Where an amount has been written off
Accounts Receivable will also recover the GST remitted from Canada Revenue Agency and may inactivate the customer account, if appropriate.

Department may request that collections be referred to a collection agency. The department assumes responsibility for all associated costs such as the collection agency fee (generally at least 20% of the outstanding amount). The department will notify Accounts Receivable of this action. The department will provide copies of all supporting documentation and other applicable information to Accounts Receivable. Accounts Receivable will liaise with the collection agency, notify the department as to the agency’s collection terms and conditions, and keep the department apprised of the agency’s progress. Amounts recovered by the collection agency (net of agency fees) will be credited to the department’s bad debt expense account.

Recovery of Write-offs
When an outstanding account is written off, the university recovers the GST previously remitted to the Canada Revenue Agency. The GST amount applicable to recovery of written off amounts must, in turn, be remitted to Canada Revenue Agency. The payment will be credited back to the reinstated invoice and the accounting string associated with the billing.