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Finance

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  1. Finance Department
  2. Sections
  3. Income and Credit Control
  4. Credit Control

Credit Control

Queen Mary University of London is becoming increasingly dependant on diversifying its income sources and thus a credit control policy of effective procedures within a clear procedural framework is required to prevent unauthorised risks being taken with the University’s resources.

Overseas opportunities have provided an area of expansion for the University over the last few years. It is important that University staffs are aware and are capable of managing the risk associated with trading in overseas markets.

Effective credit control maximises the cash flows from each area of the business and minimises the risk to the University of bad debt. It is vital that all individuals responsible for raising invoices are aware of the importance of cash management and fully co-operate with the Finance Department staff who manage the administrative process.

  • Credit control section is responsible for the collection of all outstanding University debts owed by external customers
  • The Credit Control Team chase debts on behalf of the University with reference to the normal collection and follow up cycle which prompts controllers to phone and write to customers in line with predetermined credit timetables.
  • Sending reminders to debtors is the sole responsibility of the Credit Control Team within the Finance Department. This will consist of a time defined dunning process and responses from the individual debtor.

Research Debtor

  • There are exceptions to the above rules in respect of research projects. If a new project is identified by the research teams and a contract / grant is put in place then all the paperwork is passed to the Research Office who will open The new Customer Account
  • The nature of some of the contracts relating to research will by default give rise to circumstances where the standard University payment terms are not applicable as the terms of the contract will lay down the collection timetables depending on the project and sponsor
  • In exceptional circumstances individual arrangements for repayment of debt might be allowed. This must be agreed in writing with the Head of Income and Credit Control

General Information

Payment Methods

The following payment methods are available:

University standard terms and conditions apply. Invoices are due for payment on or before 30 days after the invoice date. This does not apply to Tuition fee invoice which is due immediately or prior to enrolment.

All forms relating to the credit control process are available electronically on request from the Credit Control Department Room W117
327 Mile End Road
London
E1 4NS

Solicitors

As part of our rigorous procedures we have engaged specialist debt collection solicitors to pursue old debts on our behalf. The University reserves the right to pass matters into their hands when debts hit a certain age and all other issues have been taken into account. Their remit is to use the legal system to contact debtors and pursue enforcement.

New Accounts

  • Prior to submission of a new customer account request the Department / School must contact the Credit Control Team to ensure the customer does not already exist on the system. All new customers of the University must have relevant credit checks carried out prior to contracts being signed and work being undertaken by University staff
  • If any part of the credit application process is incomplete the credit authorisation form will be returned to the originating Department / School for correction and re-submission – the account will not be set up until all relevant documents have been correctly submitted. Once all the relevant documentation has been completed correctly and received in Finance this will then form the basis of the credit checks carried out within the Directorate. Finance staff will provide a go/no go advice based on evidence obtained within 48 hours of receipt of the completed documentation.

Invoicing

  • Sales invoices should not be raised until the work contracted has been completed, unless the contract allows otherwise.
  • Any invoice that has been raised without compliance to the University’s accounts process See procedure manual and remains unpaid after it becomes 150 days overdue will be charged back to the department who raised the original invoice.

Terms of Trade

  • The University’s standard terms and conditions state that payment terms for all invoices is on or before 30 days after invoice date. Exceptions to this must be agreed in writing in advance with the Head OF Income and Credit Control
  • The Credit Control Team chase debts on behalf of the University with reference to the normal collection and follow up cycle which prompts controllers to phone and write to customers in line with predetermined credit timetables.
  • Sending reminders to commercial debtors is the sole responsibility of the Credit Control Team within the Finance Department. This will consist of a time defined dunning process and responses from the individual debtor.
  • In exceptional circumstances individual arrangements for repayment of debt might be allowed. This must be agreed in writing with the Head of Income and Credit Control.

Debt Write Off Authority Limits

  • Sales Invoice Write off request
  • Please send an authorised memo to Lisa Davis, outlining the invoice number and the reason for the request
  • The limits for write off of The University’s debt are as follows;
  • Invoices up to £5000 Director of Finance
  • Invoices £5001 or above Finance and Planning Committee

Categories of Debt

This will include debts arising in respect of:

  • Miscellaneous debt (excluding research)
  • research
  • sponsored students
  • self funded students
  • conferences activity

Sales Ledger accounts on STOP

  • For a list of companies that the University has had business with who have recently gone into receivership or liquidation
  • List of accounts in Liquidation
  • List of companies in liquidation
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