AccountsReceivableReconciliationProcedures-University.docVIP

University of Houston ACCOUNTS RECEIVABLE GUIDELINES Fiscal Year 2015 Email Completed Package To: Gretta McClain Email address: gmcclain@ Accounts Receivable Reconciliation due to Accounting Services September 10, 2015 Accounts Receivable Guidelines Fiscal Year 2015 Table of Contents Purpose and Overview 3 General Guidelines 4 Definition of a Receivable 4 When is it Appropriate to Record an Accounts Receivable 4 Accounting Entries – To Record Receivables 5 Accounting Entry – To Record Payments Received 7 Accounting Entry – To Record Cash Sales 7 Accounting Entry – To Record the Return of Merchandise 8 Accounting Entry – To Record Returned Checks 9 Aging, Collecting, and Reconciling Accounts Receivable 10 Writing Off Accounts Receivable 11 Accounting Entries – To Write Off Accounts To Record Recovery 12 Forgiveness Of Debt 13 Submitting Accounts Receivable Reconciliation 14  Purpose and Overview The goal of this procedure is to provide the policies and procedures related to accounts receivables, and to improve the accounts receivable management as outlined by the State Auditor’s Office. By understanding the policies and procedures, and by incorporating good business practices, university employees who monitor and maintain receivables will avoid undue delays and errors. This packet addresses: What is a Receivable How to record a Receivable How to post Receivables, Payments, and Returns The Aging, Collecting, and Reconciling of Receivables How to Write Off Accounts and Record Recoveries How to formally submit the Write-Off Request This material is a supplement to the universities formal policies as detailed in the UH Manual of Administrative Policy and Procedure (MAPP), and in the UH System Administration Memorandum (SAM). Personnel working with Receivables should review and be familiar with: The UH System Administration Memorandum (SAM) 03.A.24, and The UH Manual of Administrative Policy and Procedure (MAPP