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Billing & Collection

Version Date: 22 Nov 2007

Policy Statements:
  1. Purpose:  To ensure that all earned revenues are billed, recorded and collected on time.
  2. Coverage: All UA&P employees
Implementing Guidelines
  1. Billing and Collection
    1. The billing process is always initiated by the Unit, through a Billing Request Form (BRF) duly endorsed by the Unit Head or his authorized representative.
    2. A bill must be prepared immediately upon receipt of BRF, except for receivables that do not require a BRF such as tuition fee, in which the registration certificate serves as the Bill.
    3. The unit must provide all the necessary details pertaining to the receivable to include the contact person/s, position or designation, office address and telephone number, particulars or details pertaining to the collectible amount.
    4. The original and duplicate copy of the bill will be forwarded to the requesting school or unit, who will mail the original copy to the client. Triplicate copy will be kept by FMR. The requesting unit or school is responsible for following up the payment.
    5. FMR must advise the Unit or School of unpaid bills. The Unit or School is responsible for following up the status of the account with the client if the account remains unpaid.
    6. The following internal control measures must be observed:
      1. The staff handling the receivables account of clients must not be at the same time the collector or cashier.  He/she must confirm periodically the receivable balances to serve as a check on the failure to report remittances received, erroneous recording of remittances or misappropriated collections.
      2. The Unit must advise FMR in writing, duly endorsed by the Unit Head, of accounts for write-off in order to provide for verification of collectibility of such accounts and to check the possibility of errors in recording fictitious debits and misappropriations of funds.
      3. FMR will provide a 10% allowance for bad debts based on outstanding accounts receivable annually.
      4. The statement of account is pre-numbered or must have a reference number for control purposes.
      5. Daily collections should be reconciled with the Official Receipts and receivables subsidiary ledger.
      6. It is also good policy to keep the level of collectibles at a minimum.  Participants to seminars/briefings must be encouraged to pay before the activity, and avail of the “early bird” discount.  Those who cannot do this are urged to pay on the day of the activity, and not later.