Do you pay invoices completely?
26/07/2017 8:50 AM by
If you negotiate with a supplier in relation to an invoice, do you ensure the invoice is reissued?
It is not always common but sometimes you will negotiate a change in the agreed price once an invoice has been issued by a supplier. This might be because there was a change or defect in the good or service provided and a lesser amount is agreed or an agreement that a certain amount of the invoice will be paid later when the rest of the product or service is delivered.
Do not pay an invoice in part. You should ask the supplier to reissue the invoice or issue a credit note in relation to an invoice. Otherwise, the supplier may say that there is a balance of the invoice owing.
“Jim. OK, I'll just pay $165, not the $220 on the invoice"
Figure: Bad example
“Dear Jim, Please reissue the invoice or provide a credit note for the now agreed correct amount." Figure: Good example
Do you feel this rule needs an update?