Sales & Receivables Year End Processes

1. Sales & Receivables Year End Processes Presented by: Stacie Sodolak Close-out FY07

2. 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

3. 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.

4. 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.

5. 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.

8. Year End Accounts Receivables-Form 5 • Who should submit a Form 5? • All departments with outstanding receivables.

9. 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.

10. 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

11. 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

14. Year End Accounts Receivables-Form 5 • Any Questions about Form 5?

15. 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.

16. 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.

17. 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

18. Accounts Receivables Write Offs—Form 3 • How do write-offs get submitted? • Complete Form 3 • Attach Approved Extension of Credit Letter • Attach supporting documentation

20. Accounts Receivables Write Offs—Form 3 • Any questions about Form 3?

21. 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

22. 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

23. 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

24. Pledge Receivables • How do Pledge Receivables get submitted? • Complete Pledge Receivables Form • Complete Form FD-152 • Attach Approved Extension of Credit Letter

27. Pledge Receivables • Any questions about Pledge Receivables?

28. 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.

29. 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.

30. 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 • AR@tamu.edu • Phone: 845-4509 Fax: 862-4210