Contract Agreements for Billing Requests

During a recent CBO Accounts Receivable (A/R) billing training, the following question was raised: When does a contract agreement need to be included in a billing request, and how is it determined if one is required? The university’s guidelines are outlined below.

“A contract agreement is needed whenever a formal, legally binding commitment for goods or services is established with an external entity (i.e., contracted services, service agreements, agreements involving potential liability or risk to the University, testing services, fabrication service agreements, sponsored projects and grants).

It is recommended that departments document the key terms of the agreement for services that are considered informal services to provide a clear understanding of who is responsible for what, what is expected of each party, and the agreed-upon financial terms. It also serves as a mechanism to minimize misunderstandings and resolve disputes that can arise from verbal agreements.”

An agreement between a CALS department and an external entity still requires that the appropriate University Procurement and Business Services contract review process be followed to ensure all necessary signatures and reviews are in place before any work commences or billing occurs. 

For more information on the University requirements, visit:  

• Procurement and Business Services: Contract Review
• Procurement and Business Services: Contract Review How-Tos and FAQs
• Procurement and Business Services: Standard University Agreements

All ServiceNow external billing requests that have a signed, valid agreement in place should attach the agreement to each billing request to ensure compliance with the agreement terms.

Please reach out to Beth Rosen blrosen@ncsu.edu to be added to an upcoming A/R billing training session or if you have additional A/R billing questions.