Maintaining an Educational Business Activity (EBA) requires billing to customers. Billings must be based upon measured and documented utilization which is properly authorized for the activity charged. Billing should be done timely and regularly (generally every 45 days) after services/products have been provided. EBAs may do business with university departments, i.e. internal users. The departments must pay for the services rendered through an Expense to Revenue (E2R) journal entry.
It is the EBA’s responsibility to monitor the Accounts Receivable balances for both internal and external customers. A collection agency may be used to collect old outstanding external accounts.
See the boxes below for information on billing responsibilities, billing internal departments, managing receivables and the write-off of delinquent accounts, and the proper recording of revenues and expenses for EBAs.
01/31/2021: reviewed content
Educational Business Activity/Auxiliary Accounting: (352) 294-7236