FIACCT 06-01_00 – Receivables – FINET system overview

Effective: July 1, 1998
Revised: December 1, 2019
Reviewed: December 1, 2019

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Purpose

This policy provides an overview of the FINET Receivables system.

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Background

The FINET Receivables system handles the accounting, billing, and collection of Receivables. It
can create Invoices, Statements, Dunning Messages, and Collection Letters. It can track and post
the charges on non-sufficient fund checks returned by the bank.

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Policy

A. All state agencies and their divisions will use FINET for billing non-state customers unless issued a formal, written exemption by the Division of Finance and its Office of State Debt Collection.

B. For drawing of federal funds, all state agencies and their divisions will record the draw and collection of Federal funds using the FINET Receivable (RE) and Cash Receipt (CR) documents. CMIA compliance requirements may apply. See FIACCT 14-06.00 et.seq.

C. The Internal Transaction Initiator (ITI) and Internal Transaction Agreement (ITA) process must be used to bill state agencies. Generally Accepted Accounting Principles (GAAP) require that transactions between state agencies not be recorded as Receivables. The ITI/ITA process will properly record transactions between state agencies as internal transactions to the State.

D. For entities that are not set up as a Department in FINET, an RE is appropriate.