Credit checks
The credit control team within Research Accounting credit-check all new sponsors for credit worthiness where possible. Existing sponsors are monitored regularly. If a contract negotiation is being entered into Credit Control should be contacted as early as possible in the process so they can advise on payment terms for that sponsor.
Bad debt provision
Overdue invoices are followed up on a priority basis. A general bad debt provision of 25% of the invoice value is posted into departments accounts as follows.
| when selected debts are ... | provision based on the invoice value |
|---|---|
| 91 days old | 25% |
| 181 - 360 days old | 50% |
| over 361 days old | 100% |
There is also a specific provision which is used to provide 100% of the value of the invoice regardless of its age; this is for cases where we have doubts about the recoverability of that particular debt.
Each month the prior month’s provision is reversed, the latest month’s is calculated and posted into:
- the departmental research cost centre,
- source of funds EDAZ,
- transaction code FJNC.
Notification
Departments will be contacted via the ROO at the earliest opportunity to discuss any defaults in payments from sponsors. If you become aware of any issues which may affect payment of an invoice please contact Credit Control immediately.
Bad debts
Bad debts and any legal costs of debt recovery are the responsibility of the department.
|
Contact: fincreditcontrol@admin.cam.ac.uk |