Managing Receivables and Account Write-Off

Directive Statement

Departments should develop guidelines in the management of receivables, whether student or other.  These guidelines should protect university resources and ensure that management goals and objectives are achieved.  Departments should develop guidelines in the management of outstanding receivables, which includes periodic monitoring, to ensure that outstanding accounts receivable balances are appropriately monitored for collections.

A receivable becomes past due if payment is not received by the payment due date.  If concerted reasonable collection effort has been made, and no further collection is foreseen, it is understood that invoices may be written off if they meet the following criteria:

  • Invoice age is one year old from the date of issuance
  • Invoice age is over one year and if the customer filed for bankruptcy

At no time is a department allowed to waive an uncollectable debt without submitting a write-off request to the Auxiliary Accounting Office.  Departments may not reduce or cancel payments due from customers.  This not only includes unpaid invoices, but also includes returned checks that have not been repaid.

Reason for Directive

University regulations (UF-3.042) require departments to use due diligence and exert every effort in the collection of all accounts.  The President or the President’s designee may write-off or settle any uncollectible account owed the University.

Who must comply?

All UF Departments that bill for goods/services.

Procedures & Best Practices

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