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

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


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.


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.


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:


Year End Accounts Receivables-Form 5

Who should submit a Form 5?– All departments with outstanding

receivables.



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.



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



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



Any Questions about Form 5?


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.



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.



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



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


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.



Any questions about Form 3?


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


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


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


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 #


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


Pledge Receivables

Any questions about Pledge Receivables?


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.


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.


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

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

Documents

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