#WRITEDOWN ON LOSSES DEFINITION CODE#

DR(to) Departmental Account number and object code 1250 Allowance for Doubtful Accts.A different entry is needed for units that maintain an allowance for doubtful accounts:.CR (from) Departmental Account number and accounts receivable object code.DR(to) Departmental Account number and object code 6330 - Bad Debt Expense.Once authorization has been granted for a write-off, the requesting unit will process a Distribution of Income and Expenses (DI) e-doc with the following entries: Note: Bursar office procedures are designed to ensure that effective and ongoing collection efforts are undertaken before any write-off is authorized. Student bursar receivables other than CornellCard.The University Treasurer has the authority to write-off student receivable bad debt of any dollar amount against the bursar allowance accounts, for balances deemed by the Bursar’s office to be uncollectable for the following types of receivables: Authorization for Student Loan Receivable Write-Offs Payroll should be notified of all employee-related write-offs. Note: An employee-related write-off may result in taxable income to the employee. Include in the backup a brief narrative of the reasons for the write-off, evidence of multiple collection attempts, and the account number that will fund the write-off. Once the expense has been moved, the unit’s finance manager, BSC director, or college business officer should send the write-off request to the university controller. Include in the backup a brief narrative of the reasons for the write-off, evidence of multiple collection attempts, and the account number that will fund the write off.įor sponsored accounts, to write off an employee-related receivable, expense or travel advance from a sponsored project, a unit must first prepare an e-doc moving the expense from the sponsored account to a non-sponsored discretionary account with the same higher-ed function code. This does not apply to payroll overpayments.įor non-sponsored accounts, the unit’s finance manager, BSC director, or college business officer should send requests for employee-related (current and prior employment) write-offs to the university controller. Typically, these write-offs are for travel advances. Authorization for Employee-Related Write-Offs See the instructions below for employee-related write-offs on sponsored accounts. Write-off e-docs for sponsored funds will be originated by Sponsored Financial Services. Greater than or equal to $5,000 or more will require the endorsement of the senior director of sponsored financial services and the approval of the university controller.Less than $5,000 may be approved by the senior director of sponsored financial services.

Sponsored accounts receivable write-offs will be handled internally, following Sponsored Financial Services guidelines. Note: For correcting unknown variances that are not write-offs, see Correcting Unknown Variances. Email confirmation from the operating unit's senior business officer stating that he or she agrees with the write-off.The account number that will fund the write-off.Evidence of multiple collection attempts.A brief narrative of the reason for the write-off.Requests for authorization of non-sponsored, non-employee-related write-offs should include:

Greater than or equal to $5,000: Send to the university controller.Less than $5,000: Send to the operating unit's senior business officer for approval.Authorization for Accounts Receivable (Non-Sponsored and Non-Employee-Related) Write-Offs Units are expected to include accounts receivable write-offs as part of the internal control initiative and include the unit-specific process and materiality threshold. If any unpaid balance exceeds 60 days, the unit should contact the customer to request payment. Generally, receivable outstanding balances should be paid within 30 days. An accounts receivable reconciliation should include an aged list of outstanding invoices and amounts that agree to the general ledger balance. If the individual is unable to fulfill the obligation, the outstanding balance must be written off after collection attempts have occurred.Īsset/Liability Reconciliation Guidelines require that accounts receivable object codes be reconciled monthly, assuming monthly activity has been posted. An accounts receivable balance represents an amount due to Cornell University.

A write-off is an elimination of an uncollectible accounts receivable recorded on the general ledger.

Writedown on losses definition