Fiscal Operations Manual
Section 300: Accounts Receivable
Effective: 01/01/2003
Revised: 12/01/2014



Please see current Fiscal Policy Manual for current policies


307-01 Bad Debt Expense

A bad debt expense is charged to all departments submitting charges to be billed through accounts receivable.  The amount is a percentage of the accounts receivable balance at year-end.  The percentage is based on the bad debt experience of the individual fund submitting charges.  The calculation is done by the Office of Business Affairs, and is adjusted annually.

307-02 Write-Off Criteria

The following is the criteria for uncollectible debts.

  • The debtor does not and will not for the foreseeable future own or have the right to own assets from which Oregon State University (OSU) could collect the debt.
  • It is reasonably estimated that the cost of collecting the debt would be equal to or exceed the amount of the debt.
  • The debtor is deceased and there are no assets in the debtor’s estate from which OSU could collect the debt.
  • The debtor’s estate is subject to a pending bankruptcy proceeding in which it is reasonable to conclude that the debt will be discharged and that OSU will receive none or an insubstantial share of the assets of the bankruptcy estate.
  • OSU is and will be for the foreseeable future unable to collect the debt from the debtor or from anyone owing the debtor money or holding assets of or from the debtor.