Effective immediately, Handbook F-101, Field Accounting Procedures, is revised to include handling negative balance customer trust accounts. As a reminder, postal retail units (PRUs) and bulk mail entry units (BMEUs) managing customer permit, periodicals, business reply mail (BRM), and postage due trust accounts must ensure that funds are available prior to accepting a mailing; a negative balance in a customer trust account, is not allowed.
If a customer trust account balance results in a negative balance, it is the responsibility of the unit (e.g., PRU or BMEU) to ensure collections of funds from customers to maintain their accounts in good status.
For handling negative balances in customer trust accounts, see the guidelines in Handbook F-101 as follows:
n Subchapter 16-8: Negative Balances in Permit or Periodicals Accounts.
n Subchapter 17-7: Negative Balances in BRM or Postage Due Accounts.
Handbook F-101, Field Accounting Procedures
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16 Customer Business Mail Activity (Permit Imprint and Periodicals)
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[Insert new subchapter 16-8 to read as follows:]
16-8 Handling Negative Balances in Customer Accounts
If a customer’s trust account balance (permit or periodicals) results in a negative balance, it is the responsibility of the unit (PRU or BMEU) to ensure collections of funds from customers to maintain their accounts in good status. The following matrix is a guideline for proper collections for negative balance accounts.
Negative Balance Customer Accounts
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Issue
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Process
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Action
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Encountered a negative balance account.
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Notify the customer via telephone call or e–mail.
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Do not authorize any mailings. If no response from customer by the 15th calendar day, follow the next step.
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After 15 calendar days with no response.
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Mail notification letter via regular mail and Certified Mail to the customer’s address on file; allow 20 calendar days from date of letter for customer resolution.
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Do not authorize any mailings. If no resolution from the customer within the allowed 20 calendar days, follow the next step accordingly.
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If no response after 20 calendar days from date of letter, and the negative balance amount is $100 or more.
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BMEU or PRU initiates a PS Form 1902, Justification for Billing Accounts Receivable (January 2009 version); submits with a copy of notification letter to the district finance manager (DFM) for approval. Include Tax Identification Number (TIN) on PS Form 1902.
Upon DFM approval, the BMEU or PRU sends PS Form 1902 and a required AIC 636 receipt to the Scanning and Imaging Center (SIC). An accounts receivable will be established at Accounting Services.
PostalOne: BMEU initiates PS Form 1902.
Non PostalOne: PRU initiates PS Form 1902.
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Bring the customer’s account balance to zero and close the account.
Accounting entries:
1. Enter the amount into AIC 070.
2. Offset with AIC 636.
3. Attach the support documentation for the above accounting entries to PS Form 1902.
Note: Accounting entries must be recorded in the PRU’s PS Form 1412. The PRU files a copy of the PS Form 1902 locally.
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Customer moved, left no address, address unknown, cannot be reached (any amount).
Or
Uncollectible negative balance amount below $100.
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BMEU or PRU initiates PS Form 2130, Claim for Loss; submits with copy of carrier-endorsed notification letter to the DFM for approval. Upon approval, the DFM returns the PS Form 2130 and the supporting documentation to the originating unit.
PostalOne: BMEU initiates PS Form 2130.
Non PostalOne: PRU initiates PS Form 2130.
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Bring the customer’s account balance to zero and close the account.
Accounting entries:
1. Enter the amount into AIC 070.
2. Offset with AIC 633, Claim for Loss (Use Reason Code 09, Uncollectible Customer Account Items).
Note: Accounting entries must be recorded in the PRU’s PS Form 1412. The PRU files PS Form 2130 locally.
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17 Customer Business Reply Mail and Postage Due Activity
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[Insert new subchapter 17-7 to read as follows:]
17-7 Handling Negative Balances in Customer Accounts
If a customer’s trust account balance (BRM or postage due) results in a negative balance, it is the responsibility of the unit (PRU or BMEU) to ensure collections of funds from customers to maintain their accounts in good status. The following matrix is a guideline for proper collections for negative balance accounts.
Negative Balance Customer Accounts
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Issue
|
Process
|
Action
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Encountered a negative balance account
|
Notify the customer via telephone call or e–mail.
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Do not authorize any invoices. If no response from customer by the 15th calendar day, follow the next step.
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After 15 calendar days with no response.
|
Mail notification letter via regular mail and Certified Mail to the customer’s address on file; allow 20 calendar days from date of letter for customer resolution.
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Do not authorize any invoices. If no resolution from the customer within the allowed 20 calendar days, follow the next step accordingly.
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If no response after 20 calendar days from date of letter, and the negative balance amount is $100 or more.
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BMEU or PRU initiates a PS Form 1902, Justification for Billing Accounts Receivable (January 2009 version); submits with a copy of notification letter to the DFM for approval. Include TIN on PS Form 1902.
Upon DFM approval, the BMEU or PRU sends PS Form 1902 and a required AIC 636 receipt to the SIC. An accounts receivable will be established at Accounting Services.
PostalOne: BMEU initiates PS Form 1902.
Non PostalOne: PRU initiates PS Form 1902.
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Bring the customer’s account balance to zero and close the account.
Accounting entries:
1. Enter the amount into AIC 053.
2. Offset with AIC 636.
3. Attach the support documentation for the above accounting entries to PS Form 1902.
Note: Accounting entries must be recorded in the PRU’s PS Form 1412. The PRU files a copy of the PS Form 1902 locally.
|
Customer moved, left no address, address unknown, cannot be reached (any amount).
Or
Uncollectible negative balance, amount below $100.
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BMEU or PRU initiates PS Form 2130, Claim for Loss; submits with copy of carrier-endorsed notification letter to the DFM for approval. Upon approval, the DFM returns the PS Form 2130 and the supporting documentation to the originating unit.
PostalOne: BMEU initiates PS Form 2130.
Non PostalOne: PRU initiates PS Form 2130.
|
Bring the customer’s account balance to zero and close the account.
Accounting entries:
1. Enter the amount into AIC 053.
2. Offset with AIC 633, Claim for Loss (Use Reason Code 09, Uncollectible Customer Account Items).
Note: Accounting entries must be recorded in the PRU’s PS Form 1412.
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We will incorporate these revisions into the next updated version of Handbook F-101 available on the Accounting website:
n Go to http://blue.usps.gov/wps/portal/accounting.
n Under “References”, click the Handbook F-101, Field Accounting Procedures (FAP) link.
The direct URL is http://blue.usps.gov/accounting/_pdf/HandbookF-101.pdf.
— Accounting Policy,
Controller, 10-8-09
