EFT Deposits Denominated in US Dollars

Overview

Payment for goods or services provided by the University may be received electronically through an Electronic Funds Transfer (EFT). These funds are transferred bank-to-bank. University policy requires all payments made to the University be denominated in US dollars.

EFT Deposits Denominated in US Dollars: Departments

1. Identify the type of revenue funds:
   1. If expecting a non-sponsored receipt of revenue funds, contact Non-Sponsored Accounts Receivable for banking information.
   2. If expecting a sponsored receipt of funds, contact Sponsored Financial Reporting (SFR).
2. The Billing Specialist in the cluster creates a bill in the financial system for the goods or services. The Billing Specialist should key in notes indicating that the payment is expected via EFT. This notifies Non-sponsored AR Services to look for the payment in the daily bank statements.
3. The departmental revenue will be booked to the general ledger when the bill is created and there will be an open Accounts Receivable item until the funds are received.
4. Once the payment has been received and reconciled by Non-sponsored AR Services, the departmental AR item will be closed.

Monitoring Outstanding Accounts Receivable Items

Departments are responsible for monitoring their Accounts Receivable balances for outstanding items to ensure the University has received cash for the revenue. If payment is not received, the department may have a bad debt expense charged against the revenue, effectively reversing the revenue.