20.15 Accounts Receivable Write-Off, Chancellor's Office Business Policies & Procedures


To establish policies and procedures for the write-off of uncollectable accounts receivable.


The following procedures will be used when writing off accounts receivable.


  1. If an invoice has remained unpaid for longer than three months, Business Processing Staff will evaluate the amount due for write-off.
  2. Business Processing Staff will initiate write-off if the following actions have been taken for the dollar amounts specified below (in conjunction with the normal billing process):
    • under $50.00 - a minimum of three communications, at least one written (mail, e-mail, or fax)
    • $50.01 - $99.99 - a minimum of four communications, at least two written
    • $100.00 or more - a minimum of four communications, at least two written and additional actions taken following consultation with the Controller
  3. Business Processing Staff will prepare a write-off packet which will document all communications related to the amount due, the proposed budgetary impact, and a transmittal memo from the Department Head to the Controller. See the sample request memo for an example.
  4. The Controller reviews and approves the write-off packet if the collection efforts appear reasonable given the amount due and that no further collection efforts should be made.
  5. The Controller routes the write-off packet to Business Services Staff.
  6. Upon confirming that the write-off packet has all necessary approvals, the Business Services Staff initiates the necessary transaction in FIS/HRIS to accomplish the write-off.
  7. The Business Services Staff routes the write-off packet to the FIS Approver.
  8. The FIS Approver approves the transaction if, upon examining the write-off packet:
    1. All necessary approvals have been made.
    2. The information which has been entered agrees with information on the write-off packet.
    3. Prior to final approval, the FIS Approver brings any unusual items to the attention of the Business Services Manager for resolution. The Business Services Manager:
      • reviews the unusual items,
      • clarifies the facts and circumstances (as needed),
      • researches applicable laws, rules, regulations, policies, past practices, and approved exceptions,
      • consults with Controller's Division staff and Controller (as needed) to determine resolution, and
      • coordinates communication of resolution to Department Head and appropriate Department Approver.
  9. Business Processing Staff files the write-off packet in accounts receivable archive files.

Authoritative References:


Last Updated: 03/04/03