Invoicing of Sales, Services & Recoverables
The purpose of this policy is:
- To ensure Lakehead’s financial statements correctly reflect all amounts owed to the University;
- To establish guidelines by which credit is extended to University customers on a consistent
- To manage the extension of credit by the University’s various departments;
- To minimize the cost of collecting accounts receivable; and
- To maximize cash flow.
The objective of the central accounts receivable system is threefold: first, to lessen the requirements for departmental record keeping; second, to consolidate all charges to a single billing; and finally, to standardize the reporting of accounts receivable in the University’s financial records.
All University departments that provide goods and/or services to customers or are involved with invoicing sales, services and assessments are required to utilize the central system under the administration of the Office of Financial Services.
- Collection of Accounts Receivable: The collection of general accounts receivable is the responsibility of the Accounts Receivable unit of the Office of Financial Services. In the event a customer contests a charge, however, the Manager, Student Accounts Receivable & Collection is responsible for its resolution. A service charge (as approved by the Office of Financial Services) is levied on all accounts receivable payments returned to the University by the bank (i.e., NSF, account closed, etc.).
- Uncollectible Accounts: In the absence of a legitimate dispute, credit privileges are withdrawn when a customer fails to respond to a collection notice to discharge outstanding debt. Uncollected accounts receivable balances are charged back to the department once all internal means of collection are exhausted. This action is normally initiated by the Accounts Receivable unit.
In addition, the Manager, Student Accounts Receivable & Collections may choose to exercise his/her authority to involve an external collection agency for further collection and, if necessary, legal action. Any amounts recovered by the external agency are returned to the department net of any service fees charged by the agency.
- Payment Term: Registration and Residence invoices should be paid according to the published deadlines in the Fees section of the online Calendar. For all other invoices, the University’s term of payment is 30 days from the invoice date.
- Conflict of Interest: Departments are required to notify the Controller, in writing, of a potential conflict of interest when an employee has or could be seen to have the opportunity to inappropriately benefit from the authority, knowledge or influence derived from his/her position; or to pass on said information to anyone else for the purpose of reaping benefit. This includes having personal financial dealings with an individual or company whose business with the University involves the employee’s sphere of responsibilities. If an employee is faced with a situation involving an existing or potential conflict of interest, or is in any doubt about the possible existence of a conflict of interest in issuing credit or extended payment terms, he/she must report this concern to the dean or department head.
- Please complete one of the External Invoice Request forms found on the Office of Financial Services webpage.
- Submit the completed form to the Accounts Receivable department either by inter‐office mail or by e‐mail to email@example.com.
If you have questions about the format for submitting invoices or any other invoice related inquiry, please contact the Accounts Receivable Clerk at (807)343‐8136 or the Manager, Student Accounts Receivable & Collections at (807)343‐8524.