Invoicing and Accounts Receivable

Effective Date: 
January 17, 2024
Last Revised Date: 
January 12, 2024

Purpose & Summary

To outline ALVSCE required invoicing procedures for billing and recording accounts receivable for sales to external (non-University) customers for goods and services.

Per university policy, each department/unit is responsible for invoicing and collecting payments for sales and services to customers. ALVSCE has determined additional requirements to ensure consistent and accurate invoicing across the Division.

This policy aims to ensure the following:

  1. Transparency – invoices provide all specific details of the transaction
  2. Agreement – a formal acknowledgement by the customer regarding cost(s) of the product and/or service provided
  3. Accurate Reconciliation – Business Officers are using invoices to reconcile against financial statements
  4. Record Keeping – maintaining clear invoice records serve as evidence of the sale(s) and are necessary in the event of an audit  

Scope

This required practice is applied to all ALVSCE units, including Cooperative Extension offices and Arizona Experiment Stations.

Policy

All units must follow the university’s policy for invoicing and accounts receivable, including all processes with FSM 8.1 Cash Receiving. In addition, ALVSCE units must also adhere to the following requirements:

  1. Unit’s invoice template must have all of the required fields outlined in this policy or utilize the ALVSCE Invoice Template for Products/Services
  2. All customers must receive an invoice for products/services sold.
  3. Business Offices must keep a copy for their records.
  4. Invoices must use a sequential numbering for streamlined reconciliation.
    • Recommendation: use department acronym and current fiscal year as prefix then the invoice number to 3 or 4 places depending on how frequently the unit invoices – DBS-FY24-001
  5. Invoices must include the unit’s refund policy. If the unit does not permit refunds, that must be explicitly stated.
  6. All payment terms and conditions must be clearly stated on the invoice including payment due dates.
  7. Unit must have a policy for assessing late fees, clearly documented on all invoices.
  8. Voided/cancelled invoices must be handled by the Business Officer. They must document the reason for voiding the invoice. Retain voided invoices in business office records.

If the unit providing products/services is a lab, they must include liability disclaimers on the invoice when applicable.  This should be included in the Payment and Product/Service Terms section.