Introducing any note of levity into the serious business of paying outstanding bills just makes the change to serious enforcement more pronounced. Some suppliers err in including inappropriate images such as crying individuals on their knees with speech bubbles imploring “Please!”. Instead, hand written notes or stickers/stamps can be effective persuaders. It is probably unwise to have any more categories as this can give the impression that debt of 4 months plus is a common occurrence. current, 1 month, 2 months, 3 months, 3 months+. Select the relevant contact and select Statement of Account. Navigate to the Contacts tab at the top of the screen. One of the key purposes of the customer statement is moral suasion, in this respect it can be profitable to split the debt in terms of age i.e. Therefore, you might send a statement of account to let a customer know about any open or outstanding invoices they have and the total account balance they owe you. Necessary checks include address details, transaction details as well as a general sanity check on unusually large transaction amounts. Statements should have a detachable portion that may be used as a remittance advice that includes the customer account number and details of the outstanding invoices.Īll statements should be reviewed by credit control before posting. One of the advantages of the open item statement is that it makes clear and focuses attention solely on what is owed and the age of the debt. This statement is very useful as a means for credit control as it can be used for reconciling invoices that are due for payment to what is outstanding in. From a debtor perspective, account reconciliation allows the payer to uncover errors such as double entry and incorrect amounts that have been keyed in (think of all the incorrect inward payments you have received over the years) but this in no way excuses tardy payment.Ĭustomer statements tend to come in two formats:Ī balance forward statement shows the opening balance, the transactions that went through the previous month (debit and credit) and a closing balance.Īn open item statement shows all outstanding transactions for the customer, irrespective of age. Others will check statements received but may only make payments when the supplier account is reconciled. It should be recognised that some debtor companies will ignore customer statements and simply pass for payment whatever sum is identified as owing and payable according to their own cash management parameters, often rendering a physical statement obsolete. Apart from showing an effective audit trail of transactions, they also present the debtor with a second “reminder” to settle outstanding invoices (in addition to the issue of original invoice). They should be issued as close to the beginning of each month. The issue of customer statements are an essential part of the credit control process.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |