 It is not unusual for some companies to have 30 - 40% of their debtor/sales ledger subject to queries and/or complaints. When you look at any list of debtors, you can be sure that a certain element is not late payment related. Credit control has the function of getting all accounts paid. Therefore, they have the responsibility to resolve any issue that stops full payment of an account. They may not necessarily resolve the issue themselves, but they should be the catalysts for identification, control, resolution and finally, payment. If a query or complaint arises, the main issue is to ensure the same events do not arise again, for example: Query Time-Table | Days | | a) | an invoice is sent out after 4 days of delivery/service, allowing 30 days to pay | 34 | | b) | after 35 days you send a mild arrears letter | 39 | | c) | no response to letter after 49 days, you telephone the customer who informs you that there was no order number on the invoice | 49 | | d) | you find the order number and fax through to the customer | 50 | | e) | the customer waits until the next cheque-run, 15 days away | 65 |
The following month another invoice is sent out (yes, you guessed) there was no order number on the invoice! It takes one minute to change the invoice details on the customer's computerized or manual account to ensure all invoices to that customer will include an order number. Good administration discipline is essential for efficient invoicing.
As you can see, it does not take much to get to 65 days from invoice with a good paying customer: a 'professional defaulter' with cash flow problems can easily take the days outstanding well beyond 90 days.
You should not expect the supplier to take affirmative action on an incoming invoice that they cannot identify, or is simply incorrect.
The 'old chestnut' of "we have not been invoiced": in answer to why the customer has not paid, should only ever happen once in a trading relationship.
When a customer blames the lack of an invoice, from you, is stopping them from paying, you must take final and decisive action to ensure the invoice can never again been used (fairly or unfairly) as a reason for withholding payment.
You need to get clear instruction and reference information to enter onto the invoice, from the customer, and ensure the customer information is updated on your record for future invoices.
Further problems can be caused by customers paying part of an invoice: due to disputed items, non-delivery, discounts that are not due, goods that are not wanted, and of course: those who have cash flow problems.
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