Credit Management Policy

This policy applies to all University members who provide services to external customers in return for payment to the University and/or perform the following financial management functions at the University; raising invoices and credit notes, accounts receivable data maintenance and credit control activities and the Fees Statute 2001 applies.

To provide a framework for accounts receivable and credit management within the University.

The Credit Management Procedures accompany this policy.
 

The areas covered by this policy are the raising of invoices, credit notes, payment of accounts and collection of overdue accounts.

1. Payment for invoiced goods and services must be received before goods/services can be delivered unless credit terms have been granted by the Accounts Receivable Credit Controller.
2. Payment on credit terms is only permitted where payment cannot be obtained in advance.
3. Customers are required to complete a Customer Application form and accept the University’s terms and conditions of trade before trade on credit terms can be approved. The completed and signed form by the Customer is essential for Customer Due Diligence (CDD) and to manage the collection process.
4. In line with normal commercial practice, customers are required to provide a purchase order number when purchasing goods and/or services from the University.
5. Credit terms are not normally extended to University members and will only be granted in exceptional circumstances.
6. The University will charge for all goods and services supplied to University members and third parties.
7. Customer accounts are approved by the Accounts Receivable team once the establishment of a new customer process has been completed.
8. Credit notes must only be issued in limited circumstances (see Credit Management Procedures) and must be authorised by the designated approver under Financial Delegations Policy.
9. Credit notes must be issued promptly, as GST is paid by the University as soon as a GST invoice is issued.
10. Collection of overdue accounts must follow the procedures as set out in the Credit Management Procedures.

The following definitions apply to this document:

Credit means deferred payment by a customer for the goods/services provided by the University.

Customer is an external entity or organisation who obtains goods or services from the University.

Debtor means a customer who owes money to the University, excluding students.

University means Waipapa Taumata Rau | University of Auckland and includes all subsidiaries.

University members includes staff members, students, Council, committee members, contractors, sub-contractors and invitees.

Include the following:

• Credit Management Procedures
• Receipting and Banking Policy and Procedures
• Financial Delegations Policy
• Billing & Accounts Receivable User Manual
  
• Customer Agreement Form and Standard Terms of Trade FS-11

Owner: Chief Financial Officer
Content manager: Group Financial Controller
Approved by: Vice-Chancellor
Date approved: 3 April 2014
Date last reviewed or amended: 16 October 2024
Next Review date: 31 December 2029