1.0 Reason for Policy

1.1 The University engages in certain commercial business activities resulting in sales of goods and services to external parties. The purpose of this policy is to establish the responsibilities for:

(a) granting credit and opening customer accounts;
(b) invoicing sales on credit; and
(c) collection of related accounts receivable.

2.0 Policy Statement

2.1 This policy applies to all credit sales over $50 except for the following:

(a) Tuition and related fees assessed by the Registrar's Office through the Student Information System;
(b) Non-degree tuition amounts assessed and billed by the Extended Education Division;
(c) Retail sales units utilizing a separate accounts receivable system (e.g. Book Store, Pharmacy);
(d) Research and capital contracts and grants; and
(e) Cash receipted transactions where payment is accepted at the time the transaction is initiated and recorded on a Financial Services' approved receipt form in accordance with the Cash Control Policy.

2.2 Note: This policy does not apply to inter-departmental charges.

2.3 The Faculty or Unit initiating a credit sale to an external party is responsible for determining the credit risk and is responsible for the subsequent costs of collection activities and any uncollected amounts. The Comptroller has the authority to limit or restrict the amount of credit granted to any customer or group of customers.

2.4 Financial Services is responsible for administering an External Invoice Tracking System (EITS) that will generate, track, and record invoices and other transactions related to credit sales.

2.5 Financial Services is responsible for opening customer accounts in EITS based on recommendations from Faculties and Units.

2.6 The Faculty or Unit initiating a credit sale is responsible for entering the sale transaction in EITS and ensuring that an appropriate University of Manitoba invoice is created and issued to the customer. The Faculty or Unit initiating credit sales is responsible for ensuring that all their credit sales are recorded in EITS in a timely manner.

2.7 Financial Services is responsible for assisting the Faculty or Unit with collection of old accounts receivable.

3.0 Accountability

3.1 The University Secretary is responsible for advising the President that a formal review of the Policy is required.

3.2 The Comptroller is responsible for the communication, administration and interpretation of this Policy.

4.0 Secondary Documents

4.1 The Vice-President (Administration) may approve Procedures which are secondary to and comply with this Policy.

5.0 Review

5.1 Formal Policy reviews will be conducted every ten (10) years. The next scheduled review date for this Policy is August 12, 2018.

5.2 In the interim, this Policy may be revised or rescinded if:

(a) the Approving Body deems necessary; or
(b) the relevant Bylaw, Regulations or Policy is revised or rescinded.

5.3 If this Policy is revised or rescinded, all Secondary Documents will be reviewed as soon as reasonably possible in order to ensure that they:

(a) comply with the revised Policy; or
(b) are in turn rescinded.

6.0 Effect on Previous Statements

6.1 This Policy supersedes the following:

(a) all previous Board/Senate Policies, Procedures, and resolutions on the subject matter contained herein; and
(b) all previous Administration Policies, Procedures, and directives on the subject matter contained herein; and
(c) Policy 322 – Invoicing and Collection.

7.0 Cross References

Cross referenced to:

(1) Invoicing and Collection Procedure
(2) Cash Control Policy