Skip to main content


Write-off Recoveries for Non-Student Accounts Receivable


Non-Student Accounts Receivable, Financial Management Services


December 2004


March 2019




To account for recovered accounts receivable previously deemed uncollectible.


Recovery of write-offs:

Should funds be collected at a later date, the entry to record the recovery of these funds is as follows for both KFS and Non-KFS Accounts Receivable users is as follows.

NOTE: KFS Accounts Receivable users should not create a new invoice

Allowance Method:

Direct Method:

Collection Agency: Should the funds later be recovered via a Collection Agency, the entry to record the recovery of these funds is as follows for both KFS and Non-KFS Accounts Receivable users:  NOTE:  KFS Accounts Receivable users should not create a new invoice. Collection agency fees and charges are considered an expense of the unit generating the charges and should be charged to the appropriate object code—5110.

Annual Reporting of Write-offs:
Per Indiana University Policy VI-80, all invoices written-off during the year must be submitted and reported to Accounts Receivable on an annual basis for review by the Board of Trustees.

Exceptions to this standard operating procedure require the approval of the Controller, Chief Accountant or Director of Non-Student Accounts Receivable.


Aged Receivable Report as of June 30 should include customer name and outstanding balance, aged for current, 30, 60, 90, and 120 days. Report should be system generated by KFS accounts receivable or by accounts receivable system previously approved for use by Auxiliary Accounting in consultation with campus administration.

Average Accounts Receivable should represent the sum of the prior fiscal year's twelve months accounts receivable balances divided by twelve.

Materiality should be set at a level at which a user of the financial statements would not be influenced if this information were missing. Materiality should be agreed upon with campus administration for each unit individually.

Non-Student Accounts Receivable are charges billed outside of the bursar system to students, as well as charges billed to external parties by the university for goods or services.

Productive Activity is having a recent (within 30 days) promise to pay, in writing and signed by the debtor, or a current payment plan in place on the account. Additionally, Non-Student AR requires that all non-student payment plans have payment activity within 90 days of the plan effective date of the payment plan, or within 90 days of the invoice aging to 365 days old, unless otherwise stated in the terms and conditions of payment plan.


Accrual Voucher Documentation



All auxiliary units reporting non-student accounts receivable

1"The matching principal means that revenues generated and expenses incurred in generating those revenues should be reported in the same income statement. Revenues for an accounting period are recognized in accordance with the realization principle. Then the expenses incurred in generating those revenues are determined in accordance with the matching principle. Thus, expenses are reported in the income statement for the accounting period in which the related revenues are recognized." (Intermediate Accounting, by Chasteen, Flaherty, and O'Conner; 1992; McGraw-Hill, Inc.; p.60).