CASH MANAGEMENT POLICIES AND PROCEDURES HANDBOOK
CHAPTER 2. BILLINGS AND COLLECTIONS
Section 1.0 General
This chapter provides a summary of the policies and procedures governing the
Department of Commerce’s organization unit’s billings and collection practices. It
emphasizes the vital elements of cash management, which are to bill promptly for goods
and services provided by the Federal Government, and provide for rapid collection of
amounts due. Through these actions, the amount of cash needed to conduct Government
business is lessened, and need for Federal borrowing is reduced.
Collections from Federal entities should be through non-expenditure transactions
whenever possible. Usually these transactions will be made using the Internet Payment
and Collection (IPAC) system. When checks or Electronic Funds Transfer (EFT)
payments are received, these procedures are to be applied.
Collections, whenever possible, shall be accomplished using EFT methods. Additionally,
billings should conform to Electronic Data Interchange (EDI) standards and formats.
For additional procedures to be followed for grants, see the Department’s Grants and
Cooperative Agreement Interim Manual, Chapter 14.
Section 2.0 Policy
It is the policy of the Department that all financial managers establish procedures to bill
and collect amounts due as quickly and as efficiently as possible. To achieve this
objective, all organization units responsible for preparing invoices for goods or services to
those outside the Federal Government shall ensure that each invoice is prepared within
one-working day following the day the billing office is advised that the goods have been
shipped or released, or services rendered. In the event the one-day billing rule is not cost
effective, billing must be prepared no later than five-working days from the date the
amount is recorded as an accounts receivable.
Furthermore, it is the Department’s policy that each organization unit establishes and