Procedures

Credit Management - Procedures

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1. Purpose and Objectives

The purpose of these procedures is to define the terms under which credit is offered to customers and clients of the University.

2. Definitions, Terms Acronyms

Accounts Receivable (AR) - the monies due to the University for goods sold or services rendered for which payment has not yet been received.

Bad Debt - a debt to the University that is unlikely to be repaid.

Customer - an external entity, organisation, company, partnership, or individual who obtains goods or services from the University.

Debtor - an external entity, organisation, company, partnership, or individual who owes the University money, excluding students and the Department of Education regular grants.

3. Procedures Scope/Coverage

These procedures apply to all trade debtors activities. They do not relate to research debtors administered by the Contract and Grants Accounting section, FBS Division.

4. Procedures Statement

In a large, complex organisation such as UQ, it is essential that credit is controlled and cash flow is maximised. In order to minimise bad debts, customers of the University need to be carefully scrutinised during the account establishment process. The accounts receivable / collections and banking processes need to be managed efficiently.

The University offers a broad range of services to the public. Many organisational units provide commercial, consultancy and testing services to external parties.

5. Credit Approval Process

Customer accounts are approved by the Accounts Receivable section once the establishment of a new debtor process has been completed.

6. Credit Terms

Payment up front is the preferred option, however, where credit terms are offered, an invoice must be raised. In the absence of industry standard terms or specifically negotiated terms, the following default terms of trade are to be used:

  • 30 days from the date recorded on the invoice (terms specified on the invoice).

Adequate investigation of the credit worthiness of all debtors should be undertaken before credit is given. Information on a debtor, if they have previous experience with the University, may be obtained by contacting the Accounts Receivable section within FBS.

7. Register of Debtors and Bad Debts

A Register of Debtors of those who are unable to pay their account is maintained by the Accounts Receivable section. Reports from an independent credit bureau may be required in some instances. The University refers to Financial Accountability Act 2009 s73 which outlines procedures for the recovery of monies.

Where an organisational unit provides goods and/or services to another organisational unit an invoice MUST NOT be raised through the Billing Module of UniFi. Instead they must raise an Internal Service Charge (ISC) through UniFi, the procedures and methodology of which is outlined in PPL 9.40.01 Purchasing.

8. Customer Creation and Amendments

8.1 Establishing a new customer

The key steps in setting up a new customer are as follows:

1. New Customer Checklist is prepared by the organisational unit and forwarded to the Accounts Receivable section for processing.

2. The Accounts Receivable section sends an Account Application Form to the new customer.

* An Account Application Form is not required for government, school, university, donor, research or sponsor entities.

3. New customer returns completed Account Application Form to the Accounts Receivable section.

4. If the application is approved, the Accounts Receivable section set up the new customer in UniFi.

5. The Accounts Receivable section advise the organisational unit when the new customer has been created. Once the customer is created, the organisational unit can raise invoices as required.

As a matter of policy, a post office box address will not be accepted from individuals. In the case of companies and government departments, a PO box number is acceptable.

The Accounts Receivable section send all new customer contacts a preferred invoice dispatch method email requesting the customer nominate an email address for receiving invoices. If the customer does not nominate an email addresss then the default dispatch method will be by post.

8.2 Amendments to customer details

Should amendments to a customer's details be required, the Customer Details Amendment Form must be completed by the relevant finance officer and sent to the Accounts Receivable section for processing. Any changes to a customer’s name or ABN must be supported by official documentation containing the customer’s letterhead. The organisational unit must retain copies of all relevant source documents.

The Accounts Receivable section will accept customer detail amendments without a form where the customer has clearly stated the required changes in writing. The required changes are to be forwarded to the Accounts Receivable section along with the customer name, customer ID, reason for the amendment and the customer's original email or letter requesting the amendment.

Custodians
Chief Financial Officer
Mr Andrew Betts

Forms

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Customer Notification Register - Form

Customer Notification Register - Form

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Description: 

Download the current list of customers who have gone into administration/liquidation or have ceased trading.

Custodians
Chief Financial Officer
Mr Andrew Betts
Custodians
Chief Financial Officer
Mr Andrew Betts
Custodians
Chief Financial Officer
Mr Andrew Betts