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Business and Financial Policies and Procedures

5.4.1 Calculate Your Allowance for Uncollectible Receivables

Policy Statement

Implicit in every receivable is a measure of doubt about its collectability. Therefore, an allowance for uncollectible receivables must be calculated and recorded for every unit that has receivables transactions. Units should keep this allowance in mind when building the pricing structure for their goods and services.

Procedure

To calculate your allowance for uncollectible receivables:

  1. If your unit uses Banner AR, USFSCO Business Operations calculates each unit's allowance for uncollectible accounts and records it in your unit's Fund in the Banner General Ledger.
  2. If your unit does not use Banner AR, calculate an allowance for uncollectible accounts and record it in the Banner General Ledger annually at fiscal year end. Consult Allowance for Uncollectible Accounts Receivables for detailed information and instructions. If you need additional help, contact USFSCO Business Operations for requirements.

Additional Resources

Allowance for Uncollectible Accounts Receivables

Last Updated: August 1, 2012 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 2010

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