Another unbalanced balance sheet

[Robert Locke]

On Tue, 2005-01-25 at 06:49 -1100, Bill Wisse wrote:
> On Tuesday 25 January 2005 03:23, TC wrote:
> > > IMO in real (business) life you should never accept payments...
> >
> > Hmm.
> > Some would argure that real life dictates you should never not accept
> > payments. Period :-)
> 
> You are right. Maybe I worded it wrong, you take the payment but apply it to 
> the oldest invoice.
> Overall it is a tricky situation if that happens, you do want your money but 
> you don't want to upset the customer.
> 
> 

Actually, it is the application to the oldest invoice that in fact
creates the most confusion in trying to reconcile between business and
customer.

When a customer pays an amount that obviously belongs to a later
invoice, then that invoice should be marked paid and the older invoice
should be left open.  We both then agree that the older invoice has not
been paid.  But when I, the business, apply the amount to the older
invoice, I believe the older invoice has been paid but the customer
insists that the newer invoice I am now trying to collect on has already
been paid - resulting in ill will.

Payments need to be applied based on the intent of the customer, not the
intent of the business - then we are all speaking the same language.

It gets even worse when the invoices are for different amounts and we
end up with tons of partial payments.  Ever tried to audit/reconcile one
of those?  Nobody is on the same page then.  And the accounting system
and/or relationship takes the fall....

--Rob

-- 
Robert Locke
Principal, Master Technologist
RAL-II Consulting, LLC