Credit and Collection Procedures - FM 4.1 - October 2019 Review

Sep 16, 2026

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Credit and collection procedures define how Yukon University manages overdue accounts while meeting fiscal responsibility obligations. The guidelines outline escalation steps, transparency, and confidentiality of information collected, including compliance with relevant acts such as PIPEDA. Standard payment terms are 30 days from invoice date, after which a 2% interest penalty applies and the university may offset owed amounts with outstanding expenses. Responsibilities cover monitoring, aging reports, departmental coordination, and documentation, with defined actions for uncollectible accounts at 31+ days, culminating in account holds and credit suspension for accounts 91+ days overdue.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages8

Reading Time3 min

AccessFree to download

Procedures: Client Collection

Purpose and Background

Guiding Principles

Definitions

Procedures

4.1 Payment Terms

4.2 Responsibilities

4.3 Uncollectible Accounts

Procedures: Client Collection Associated Policy: Credit and Collection Policy, FM 4.0 Procedure Holder: Finance and Administrative Services Original Date: October 2019 Next Review: October 2021 1. Purpose and Background The University takes its fiscal responsibility obligations seriously, will take all necessary and reasonable actions for the collection of overdue accounts. This policy establishes guidelines for the collection of outstanding and overdue accounts, with the overall goal to maximize cash flow and achieve minimal outstanding account delinquency. 2. Guiding Principles • The University will work with its clients to resolve all outstanding overdue situations before they become unmanageable, difficult and/or uncollectable, and will make every reasonable effort to keep collections efforts in-house; • The University will implement an escalating process for the collection of overdue accounts; • The University will have a transparent, equitable, and consistent process for dealing with overdue accounts; • All efforts to collect overdue accounts have taken place before an account is placed with an external agency; • The University will treat as confidential all information received regarding the collection process, both internal and external, and will follow all applicable territorial and federal acts and statutes, including “Personal Information Protection and Electronics Documents Act (PIPEDA)”; • The authority to settle an account for less than the total amount due (which may include interest/and/or late fees) rest with the Director of Finance and Administrative Services or their delegate. 3. Definitions • Accounts: is the balance of money due to a company for goods or services delivered or used but not yet paid by the customer. • Collections: is the process of pursuing payments of debts owed by individuals or businesses that are overdue. • Collection Agency: a company hired to collect on a debt after multiple in-house attempts to collects on overdue receivables. • Company Accounts: balances owed on account by funders and/or companies. • Student Accounts: balances owed on account by students. • Client: is any student/funder/company who we provide goods or service too. • Funder: an individual, government, organization or corporation that provides financial assistance to a student. • Funded Student: a student whose tuition and/or fees are fully or partially paid by afunder. A funded student account will be zero once the funder has made the commitment to pay for tuition/fees. The funder becomes liable for the debt once the commitment has been confirmed. 4. Procedures 4.1 Payment Terms Yukon University’s standard terms of payment is 30 days from the invoice date. This is clearly identified on all invoices created. Invoices outstanding beyond the 30-day payment term will be charged a 2% interest penalty on the principle outstanding amount until the debt is paid in full. In addition, with any invoice that is more than 30 days overdue, the University, with proper notification, reserves the right to offset the amount it is owed by the customer against any outstanding expenses the University owes the customer. 4.2 Responsibilities The Accounts Receivable Clerk in Finance is responsible for the monitoring of collections for finance accounts receivable. The Accounts Receivable Clerk for students is responsible for collection of funder and student accounts receivable once the tuition deadline has passed and Admissions has attempted to collect from the student. Campus Housing will manage their own accounts receivable to students. The Accounts Receivable Clerks will run an Accounts Receivable Aging report that is downloaded from Banner. This report will be done monthly, and overdue accounts will be contacted. For finance accounts receivable, the Accounts Receivable Clerk will communicate with Yukon University departments to ensure that they are aware of outstanding invoices

FAQs

What are the standard payment terms and when do penalties start?

Standard terms are 30 days from the invoice date. Invoices outstanding beyond 30 days incur a 2% interest penalty on the outstanding principal until paid in full.

What actions does the university take for invoices overdue by more than 30 days?

With proper notification, the university may offset amounts it is owed by the customer against outstanding expenses the university owes the customer.

How are accounts handled when they are 91+ days overdue?

If there is no response and/or no payment, the Accounts Receivable Clerk notifies the Manager, Finance & Administrative Services. The customer’s credit is suspended, an Accounts Receivable issue hold is applied in Banner, and a formal letter requesting payment or response by a set date is sent.

Sep 16, 2026

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