Definitions

Receivable

A receivable is money owed to a business by its clients (customers) and shown on its balance sheet as an asset.

Receivable Transaction

Receivable transactions result when items are sold “on account,” that is, when goods or services are delivered before payment is received for them. The University of Illinois System recognizes two types of acceptable receivable transactions:

• Transactions related to the System’s mission of granting academic credit toward the awarding of a degree and/or for possible transfer to another institution of higher education.
• Business transactions consistent with the System’s missions of instruction, research, public service to the community, and economic development, where credit is extended for necessary, sound business reasons. However, extending credit does not guarantee you will be paid.

Receivable Process

The System receivable process includes recording, collecting, and managing funds due to and received by the System, including sales of goods and services and loans to students. There are two types of receivables:

• A general account receivable (GAR) is a non-student account in Banner AR.
• A student account receivable (SAR) is a student account in Banner AR.

Last Updated: August 1, 2012 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 2010