Excuse 15: Payments on wrong invoice
Where payments are allocated in order and result in a payment against a
different invoice than the customer intended.
|Customer believes they should
pay specific invoices, and has chosen to pay some invoices out of order
|This is fair enough, but if paid
within terms, paying invoices out of order will not cause a problem
even if payments misallocated (think about it).
The only time this is an issue is when at least one of the payments is
outside terms - it can result in a different invoice causing a late
payment penalty, but a penalty would result anyway
Can happen where an invoice is missed for some reason
Non penalty late payment can happen where the missed invoice is a
penalty invoice itself (late payment of which does not cause a new
Payment mis order can change the number of overdue invoices and so have
an impact on penalties due
|Customer does not believe they
have an obligation to adhere to the agreement they have made
probably has a fundamental misunderstanding that they don't have to do
what was agreed, but that it is fair to do whatever they can get away
with and feels aggrieved that they failed to get away with paying late
when they usually do (with other suppliers).
- Usual answer is to ask what payments go where and manually
allocated. Cancel penalty invoices (credit) and re-calculate what
penalties are due. This can sometimes mean more penalty than was being
chased anyway. However, having allocated as per the customer request,
they have no real excuse not to pay the re-calculated invoices.