Sales & Receivables Year End Processes Presented by: Stacie Sodolak Close-out FY07
Dec 30, 2015
Sales & Receivables Year End Processes
Presented by: Stacie SodolakClose-out FY07
2222 Financial Management Operations – Sales & Receivables
Topics of Discussion
Accounts Receivables Extension of Credit
– System Regulation 21.01.04 Year End AR Procedures
– Year End Accounts Receivables-Form 5– Accounts Receivables Write Offs-Form 3– Pledge Receivables
Deadlines– Interdepartmental Transfers and ARs– Cash deposits
Resources
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Accounts Receivables
What is an Accounts Receivable?– Sale of goods or services in which payment is owed to a
TAMU department from a non-TAMU(02) customer.– Invoices can be billed daily, weekly, monthly, or annually
depending on the department’s operation.– Departments have the option of using FMO or using their
own system to set up and track receivables. However, all outstanding accounts receivables must be submitted to FMO at fiscal year end.
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System Regulation 21.01.04Extension of Credit
Each system component’s CFO has been given authority to set up an extension of credit operation.
Extension of Credit letter required when extending credit to non-TAMU System components.
Prior approval of letter is required.
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System Regulation 21.01.04Extension of Credit
Approved letter must be submitted with Form 5, Form 3, and Pledge Form.
If your letter was approved prior to 1/01/06, a new request must be submitted using our standard form located on our website.
Approval Recommended DeniedTerry PankratzAssistant VP for Finance & ControllerMS 6000 C/O Stacie Sodolak Date
(1) general description of the operation requiring credit extension;
(2) estimated duration of the extension of credit operation;
(3) estimated value of the extension of credit operation (monthly and aggregate);
(4) anticipated annual write-offs, if any; and
(5) any other pertinent information.
(6) List customers (TAMU, TAMU System Components, or Non System Organizations)
Sincerely, Approval Recommended Denied
Sales and Receivable Supervisor Date
Approval Recommended Denied
Director Date
Controller Signature
June 14, 2007
Account Number:Account Title:
SABA/Dept Head Name
Department Name
The account listed above is requesting the authorization to Extend Credit per System Regulation 21.01.04 which states:
Authorization for an extension of credit operation is delegated to the CFO of the System component extending credit. Written documentation maintained by the CFO should explain the circumstances allowing for an extension of credit and confirm that the operation meets the constitutional test of being in the best interest of the System component and for the public good of the state of Texas.The document must also contain the following information:
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Year End Accounts Receivables-Form 5
Who should submit a Form 5?– All departments with outstanding
receivables.
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Year End Accounts Receivables-Form 5
What should be reported on the Form 5?– All accounts with outstanding receivables billed between
9/01/06 and 8/31/07 regardless of account balance at year end.
– Sales that are recorded in the department’s records, but have not been processed in FAMIS by FMO.
– Invoices reversed by FMO that have not been collected by the department.
– Current invoices that were not submitted to FMO by the year end cut off date.
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Year End Accounts Receivables-Form 5
When is this form Due?– Monday, September 3 by noon
Where is it to be sent?– Sales & Receivables Mail Stop
6000 Attn: Stacie Sodolak Why do we submit this form?
– So that all Accounts Receivables revenue is recorded for our annual financial report
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Year End Accounts Receivables-Form 5
How do year end ARs get reported?– Complete Form 5– Complete Form FD-152– Attach Approved Extension of Credit Letter– Attach supporting documentation
Form 5 Due: September 3, 2007Return To: Sales & Receivables
Financial Management OperationsMail Stop 6000
Acct # Department Name Contact Person
Department Head Signature
Customer number: 00-000000-00000 will be used for all TAMU System Parts
TAMU System Total 0-30 31-60 61-90 91-180 > 180Parts Amount Days Days Days Days Days
Customer Name Past Due Past Due Past Due Past Due Past Due
Total $0.00
Customer number: 68-000000-00000 will be used for all Non-TAMU System Parts (including SOFC Accounts)
Non-TAMU Total 0-30 31-60 61-90 91-180 > 180System Parts Amount Days Days Days Days Days
Customer Name Past Due Past Due Past Due Past Due Past Due
Total $0.00
Attach Accounts Receivable Form FD152.Customer number: 00-000000-00000 or 68-000000-00000Date: 8/31/2007Selling Account: enter your dept accountOBJ Code: enter revenue codeDescription: AR@8/31
Attach copy of Approved Extension of Credit Letter - see System regulation 21.01.04
TEXAS A&M UNIVERSITYACCOUNTS RECEIVABLES
The total accounts receivable as of August 31, 2007 not previously processed through FMO Pledge amounts must be submitted on the PLEDGE FORM. Any write off amounts are to be submitted on Form 3. Attached is supporting documentation (invoice copies, etc.) showing the department is owed the funds from the listed customers.
Please note that any outstanding receivable reversed by FMO that the department has not been able to collect on should be reported on this form.
If your Extension of Credit Letter was approved PRIOR to 1/01/2006, please submit a new request for each account using the form located at http://finance.tamu.edu/fmo/forms/default.asp#salesRec.
Form FD 152 (Rev.) 11/90 Texas A&M University--SalesSales Copy Accounts Receivable BILL No.A 439710
College Station, TX 77843-6000
Customer Name: Accounts Receivables at 8/31 Date: 8/31/07Part Selling OBJ
Customer No. No. Customer Acct. Customer Project Account Code Amount
68 000000 00000 553091 0482 $3,539.12
Description:
AR@8/31/07 Book Sales
Department: University Press Prepared by: Stacie SodolakMail Stop: 4354 Phone: 845-4590 TOTAL $3,539.12
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Year End Accounts Receivables-Form 5
Any Questions about Form 5?
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Accounts Receivables Write Offs—Form 3
Who should submit a Form 3?– Departments with uncollectible receivables
two year old or older from non-TAMU customers.
– Departments that have received bankruptcy notices from customers with outstanding receivables.
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Accounts Receivables Write Offs—Form 3
What should be reported on the Form 3?– Uncollectible receivables billed to non-TAMU
System components that are two years old or older with supporting documentation of collection efforts.
– Uncollectible receivables billed to customers that have filed for bankruptcy with supporting bankruptcy documents.
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Accounts Receivables Write Offs—Form 3
When is this form Due?– Wednesday, August 1 by 5 pm
Where is it to be sent?– Sales & Receivables Mail Stop 6000
Attn: Stacie Sodolak Why do we submit this form?
– To be in compliance with System Regulation 21.01.04 and to move bad debt expenses off of your books
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Accounts Receivables Write Offs—Form 3
How do write-offs get submitted?– Complete Form 3– Attach Approved Extension of Credit Letter– Attach supporting documentation
Form 3 Due Date: August 1, 2007Return to : Sales and Receivables
Financial Management OperationsMail Stop 6000
TEXAS A&M UNIVERSITY Request for Accounts Receivable Write Offs for invoices billed FY05
The _____________________________ department requests that the following list of accountsreceivable write-offs be charged off as uncollectible accounts. Every collection effort has been madeand no further collection is foreseen. Attached is supporting documentation (invoice copies, past dueletters, statement from collection agency, etc) showing the collection efforts made by this department.
Acct # Department Name ContactPerson
Department Head Signature
TotalInvoice Customer's Description Amount AR's billed
Date Name in FY05
% of Write-off
TOTAL $0.00 #VALUE!
Approval FMO Date
Invoices should only be written off when they are two years old or older or if the customer has filed for bankruptcy(documentation must be attached). The percentage written off should not exceed 10% of the total receivalbes billed for that particular fiscal year. If the percentage exceeds 10%, a detailed explaination must be attached and signed by the Department Head.
Attach copy of Approved Extension of Credit Letter - see System regulation 21.01.04If your Extension of Credit Letter was approved PRIOR to 1/01/2006, please submit a new request for each account using the formlocated at http://finance.tamu.edu/fmo/forms/default.asp#salesRec.
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Accounts Receivables Write Offs—Form 3
Any questions about Form 3?
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Pledge Receivables
Pledge Receivables are binding promises for payment such as Telethon pledges.
GASB 33 requires TAMU to report any outstanding pledge as a receivable.
Current assets – Due in 12 months or less– Coded 1328
Non-Current assets– Due in 13 months or more– Coded 1329
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Pledge Receivables
Who should submit a Pledge Receivables Form?– Departments with outstanding pledges.
What should be reported on this form?– Current and Non-Current Assets– Pledge Date– Fund Raising Activity– Description of Pledge– Amount
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Pledge Receivables
When is this form Due?– Monday, September 3 by noon
Where is it to be sent?– Sales & Receivables
Mail Stop 6000
Attn: Stacie Sodolak Why do we submit this form?
– To be in compliance with GASB 33
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Pledge Receivables
How do Pledge Receivables get submitted?– Complete Pledge Receivables Form– Complete Form FD-152– Attach Approved Extension of Credit Letter
Due: September 3, 2007Return To: Sales & Receivables
FMOMail Stop 6000
TEXAS A&M UNIVERSITYPLEDGES RECEIVABLE
The Pledges receivable as of August 31, 2007 not previously processed through FMO.
Acct # Department Name Contact Person Phone #
Department Head Signature
Due DuePledge Fund Raising Description Amount 1 Year after
Date Activity or less 1 Year
Total
Attach Accounts Receivable Form FD152.Customer number: 68-000000-00002Date: 8/31/2007Selling account: enter your dept GL accountOBJ Code: 1328 = Current or Short Term
1329 = Non Current or Long TermDescription: Pledges @8/31
Attach copy of Approved Extension of Credit Letter - see System regulation 21.01.04If your Extension of Credit Letter was approved PRIOR to 1/01/06, please submit a new request for each accountusing the form located at http://finance.tamu.edu/fmo/forms/default.asp#salesRec.
Form FD 152 (Rev.) 11/90 Texas A&M University--SalesSales Copy Accounts Receivable BILL No.A 439710
College Station, TX 77843-6000
Customer Name: Pledge Receivables at 8/31 Date: 8/31/07Part Selling OBJ
Customer No. No. Customer Acct. Customer Project Account Code Amount
68 000000 00002 021055 1328 $5,000.00
Description:
Pledges@8/31/07 Public TV Telethon
Department: KAMU Prepared by: Stacie SodolakMail Stop: 4244 Phone: 845-4590 TOTAL $5,000.00
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Pledge Receivables
Any questions about Pledge Receivables?
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DeadlinesInterdepartmental Transfers & ARs
All interdepartmental transfers and accounts receivables must be received by Sales & Receivables no later than Friday, August 24th by 5 pm– IDTs (interdepartmental transfers) Form FD-150– ARs (accounts receivables) Form FD-152
We will continue to enter IDTs and ARs until close-out, but we are only guaranteeing items we receive by this date to be entered for FY07.
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DeadlinesCash Deposits
All cash deposits for FY07 must be received by TAMU Cashiers no later than Friday, August 31st by noon.
Clearly mark cash deposits: FY07 Cash deposits submitted after noon on
Friday, August 31st must be marked: FY08.
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Resources
http://finance.tamu.edu/fmo/forms/default.asp#salesRec– Year End Forms
http://finance.tamu.edu/fmo/forms/default.asp#finRpt– This slide presentation and year end memos
http://tamus.edu/offices/policy/21-01-04.pdf– System Regulation 21.01.04
http://finance.tamu.edu/fmo/manuals/defualt.asp#salesRec– Sales and Receivables procedures manuals
http://finance.tamu.edu/fmo/sales/questions.asp– FAQs
Contact Information– [email protected]– Phone: 845-4509 Fax: 862-4210