Sales & Receivables Year End
Processes
Presented by:
Stacie Sodolak
Close-out FY07
Topics of Discussion
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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
Financial Management Operations – Sales & Receivables
Accounts Receivables
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What is an Accounts Receivable?
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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.
Financial Management Operations – Sales & Receivables
System Regulation 21.01.04
Extension of Credit
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Each system component’s CFO has been given
authority to set up an extension of credit operation.
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Extension of Credit letter required when extending
credit to non-TAMU System components.
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Prior approval of letter is required.
Financial Management Operations – Sales & Receivables
System Regulation 21.01.04
Extension 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.
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Financial Management Operations – Sales & Receivables
June 14, 2007
Approval
Terry Pankratz
Assistant VP for Finance & Controller
MS 6000 C/O Stacie Sodolak
Recommended
Controller Signature
Denied
Date
Account Number:
Account Title:
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:
(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
SABA/Dept Head Name
Sales and Receivable Supervisor
Approval
Recommended
Recommended
Denied
Date
Denied
Department Name
Director
Date
Year End Accounts ReceivablesForm 5
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Who should submit a Form 5?
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All departments with outstanding
receivables.
Financial Management Operations – Sales & Receivables
Year End Accounts ReceivablesForm 5
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What should be reported on the Form 5?
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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.
Financial Management Operations – Sales & Receivables
Year End Accounts ReceivablesForm 5
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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
Financial Management Operations – Sales & Receivables
Year End Accounts ReceivablesForm 5
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How do year end ARs get reported?
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Complete Form 5
Complete Form FD-152
Attach Approved Extension of Credit Letter
Attach supporting documentation
Financial Management Operations – Sales & Receivables
TEXAS A&M UNIVERSITY
ACCOUNTS RECEIVABLES
Form 5
Due:
Return To:
September 3, 2007
Sales & Receivables
Financial Management Operations
Mail Stop 6000
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.
Acct #
Department Name
Contact Person
Department Head Signature
Customer number: 00-000000-00000 will be used for all TAMU System Parts
TAMU System
Parts
Customer Name
Total
Total
Amount
0-30
Days
Past Due
31-60
Days
Past Due
61-90
Days
Past Due
91-180
Days
Past Due
> 180
Days
Past Due
$0.00
Customer number: 68-000000-00000 will be used for all Non-TAMU System Parts (including SOFC Accounts)
Non-TAMU
System Parts
Customer Name
Total
Total
Amount
0-30
Days
Past Due
31-60
Days
Past Due
61-90
Days
Past Due
91-180
Days
Past Due
> 180
Days
Past Due
$0.00
Attach Accounts Receivable Form FD152.
Customer number: 00-000000-00000 or 68-000000-00000
Date: 8/31/2007
Selling Account: enter your dept account
OBJ Code: enter revenue code
Description: AR@8/31
Attach copy of Approved Extension of Credit Letter - see System regulation 21.01.04
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.
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.
Texas A&M University--Sales
Accounts Receivable
College Station, TX 77843-6000
Form FD 152 (Rev.) 11/90
Sales Copy
Customer Name:
Accounts Receivables at 8/31
No.
Customer Acct.
68
000000
439710
Date: 8/31/07
Part
Customer No.
BILL No.A
Customer Project
00000
Selling
OBJ
Account
Code
Amount
553091
0482
$3,539.12
Description:
AR@8/31/07
Book Sales
Departm ent: University Press
Prepared by: Stacie Sodolak
Mail Stop: 4354
Phone: 845-4590
TOTAL
$3,539.12
Year End Accounts ReceivablesForm 5
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Any Questions about Form 5?
Financial Management Operations – Sales & Receivables
Accounts Receivables Write Offs—
Form 3
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Who should submit a Form 3?
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Departments with uncollectible receivables
two year old or older from non-TAMU
customers.
Departments that have received bankruptcy
notices from customers with outstanding
receivables.
Financial Management Operations – Sales & Receivables
Accounts Receivables Write Offs—
Form 3
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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.
Financial Management Operations – Sales & Receivables
Accounts Receivables Write Offs—
Form 3
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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
Financial Management Operations – Sales & Receivables
Accounts Receivables Write Offs—
Form 3
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How do write-offs get submitted?
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Complete Form 3
Attach Approved Extension of Credit Letter
Attach supporting documentation
Financial Management Operations – Sales & Receivables
Form 3
Due Date:
August 1, 2007
Return to :
Sales and Receivables
Financial Management Operations
Mail Stop 6000
TEXAS A&M UNIVERSITY
Request for Accounts Receivable Write Offs for invoices billed FY05
The _____________________________ department requests that the following list of accounts
receivable write-offs be charged off as uncollectible accounts. Every collection effort has been made
and no further collection is foreseen. Attached is supporting documentation (invoice copies, past due
letters, statement from collection agency, etc) showing the collection efforts made by this department.
Acct #
Department Name
Contact
Person
Department Head Signature
Invoice
Date
Customer's
Name
Description
Amount
Total
AR's billed
in FY05
% of Write-off
TOTAL
Approval FMO
$0.00
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 21.01.04
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.
#VALUE!
Accounts Receivables Write Offs—
Form 3
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Any questions about Form 3?
Financial Management Operations – Sales & Receivables
Pledge Receivables
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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
Financial Management Operations – Sales & Receivables
Pledge Receivables
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Who should submit a Pledge Receivables Form?
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What should be reported on this form?
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Departments with outstanding pledges.
Current and Non-Current Assets
Pledge Date
Fund Raising Activity
Description of Pledge
Amount
Financial Management Operations – Sales & Receivables
Pledge Receivables
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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
Financial Management Operations – Sales & Receivables
Pledge Receivables
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How do Pledge Receivables get submitted?
– Complete Pledge Receivables Form
– Complete Form FD-152
– Attach Approved Extension of Credit Letter
Financial Management Operations – Sales & Receivables
Due:
Return To:
September 3, 2007
Sales & Receivables
FMO
Mail Stop 6000
TEXAS A&M UNIVERSITY
PLEDGES RECEIVABLE
The Pledges receivable as of August 31, 2007 not previously processed through FMO.
Acct #
Department Name
Contact Person
Phone #
Department Head Signature
Pledge
Date
Fund Raising
Activity
Description
Amount
Due
1 Year
or less
Total
Attach Accounts Receivable Form FD152.
Customer number: 68-000000-00002
Date: 8/31/2007
Selling account: enter your dept GL account
OBJ Code:
1328 = Current or Short Term
1329 = Non Current or Long Term
Description: Pledges @8/31
Attach copy of Approved Extension of Credit Letter - see System regulation 21.01.04
If your Extension of Credit Letter was approved PRIOR to 1/01/06, please submit a new request for each account
using the form located at http://finance.tamu.edu/fmo/forms/default.asp#salesRec.
Due
after
1 Year
Texas A&M University--Sales
Accounts Receivable
College Station, TX 77843-6000
Form FD 152 (Rev.) 11/90
Sales Copy
Customer Name:
Pledge Receivables at 8/31
No.
Customer Acct.
68
000000
439710
Date: 8/31/07
Part
Customer No.
BILL No.A
Customer Project
00002
Selling
OBJ
Account
Code
Amount
021055
1328
$5,000.00
Description:
Pledges@8/31/07
Public TV Telethon
Departm ent: KAMU
Prepared by: Stacie Sodolak
Mail Stop: 4244
Phone: 845-4590
TOTAL
$5,000.00
Pledge Receivables
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Any questions about Pledge
Receivables?
Financial Management Operations – Sales & Receivables
Deadlines
Interdepartmental Transfers &
ARs
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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.
Financial Management Operations – Sales & Receivables
Deadlines
Cash 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.
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Financial Management Operations – Sales & Receivables
Resources
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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
Financial Management Operations – Sales & Receivables