Receivables

Policy

FIACCT 06-02_01 – FINET – exempt agencies – recording receivables on FINET

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

Purpose

This policy explains the policy and procedures that FINET-exempt agencies shall follow to record non-Federal Invoices in FINET. A FINET-exempt agency is a state agency that has been granted a written exemption from using FINET) to track their Receivables by the Division of Finance and the Office of State Debt Collection (OSDC).


Policy

All FINET-exempt agencies shall summarize and record receivable activity in FINET at quarter end.


Background

FINET-exempt agencies are normally granted an exemption from using FINET to track their Receivables because they have an internal receivable system that will meet their unique needs. However, all FINET exempt agencies shall summarize the activity on their internal receivable system and record it in FINET at quarter end or more frequently. This will maintain the integrity of the State’s accounting system.

A state agency’s Receivables to be recorded on FINET may need to be adjusted for uncollectible Receivables or allowance for doubtful accounts. State agencies need to work with the Division of Finance and OSDC to establish departmental procedures for properly recording Receivables and allowance for doubtful accounts (See FIACCT 06-02.04 FINET-Exempt Write-Offs and Allowances).

The Internal Exchange Transaction (IET) will be used by FINET-exempt agencies to record their receivable activity in FINET.


Procedures

Responsibility

Action

Agency

Meet with the Revenue Accountant at the Division of Finance to
establish the proper accounting process and appropriate accounting
codes to record accounts receivable in FINET.

Division of Finance

Consult with FINET-exempt agencies to determine the appropriate
codes to be used on the summary IETs.

Agency

Create an IET document at quarter end or more frequently to record
summary receivables activity.

Create an IET document at quarter end or more frequently to record
summary receivables activity.



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