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PostPosted: Tue Jun 23, 2009 2:26 pm 
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Hi,

I think i have an ethics question, but not sure. We provide a service that has a field person go to a customer site and take some readings. They then go back to the office, and analyze the readings, and generate a report of the findings. The report is the final "product".

Sometimes the report takes several days to a few weeks to generate.

For example, the onsite visit might have been April 25th, and then the report is completed and delivered on May 10th.

Our Accountant insists its "ok" to send the invoice on May 10th, but with an invoice date of April 25th. Therefore our Net30 customer would technically need to pay the invoice by June 10th. (our account is trying to increase cash flow)

Our account argues this is ok since the accounting dept at the customer will call the buyer and ask if the service was completed. Once the buyer says yes, the accountant will release the invoice to be paid by June 10th.

Is this allowed/ethical/common?

TIA


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PostPosted: Tue Jun 23, 2009 6:18 pm 
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Weird thing about this situation is, that you wait with sending an invoice dated April 25th, until May 10th. Give it some days for the post office to actually deliver the invoice to the customer, give the customer some time to process the invoice into A/P. In the end, with an invoice date of April 25th, customer will only have a few days to actually pay the invoice (30 days after invoice date).
Also, if the invoice is dated April 25th, but not printed and send out on May 10th, then the results for the month of April will not reflect the truth, and this might be against general principles.
Last, if you date the invoice April 25th, and bill the customer for the actual report, than officially you will be billing something that has not even been done yet.

My advise, if you print out and send the invoice on May 10th, then date the invoice May 10th as well. This would be the only way to reflect in the books, what actually happens in real life.


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PostPosted: Tue Jun 23, 2009 6:40 pm 
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I agree with Ingmar and have a separate question for you.

Have you, by chance, noticed that any/most of your customers pay past 30 days?

I'm just curious, because from an A/P perspecitve, I would pay your invoice 30 days after receipt of the product purchased, i.e. the report. Most A/P people are trained to pay this way, especially if the vendor has a habit of pre-dating invoices.

Another way to think about it - if you received an invoice 2 weeks before you received your product, how would you pay your vendor?


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PostPosted: Tue Jun 23, 2009 7:03 pm 
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rsearcy wrote:
I agree with Ingmar and have a separate question for you.

Have you, by chance, noticed that any/most of your customers pay past 30 days?

I'm just curious, because from an A/P perspecitve, I would pay your invoice 30 days after receipt of the product purchased, i.e. the report. Most A/P people are trained to pay this way, especially if the vendor has a habit of pre-dating invoices.

Another way to think about it - if you received an invoice 2 weeks before you received your product, how would you pay your vendor?


Our old accountant would make the invoice date the day he sent it versus back dating it, but we had a few customers that would still regularly pay 30-40 days instead of right at 30. I think the new account thinks that by back dating the invoice we might be more likely to get paid with in the "real" 30 days (30 days from the date the invoice was printed) or in the best case, actually get paid early from the "real" (date the invoice was printed) date.


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PostPosted: Wed Mar 14, 2018 4:29 am 
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I am also looking for web based invoicing software.

Invoicing Billing Software


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PostPosted: Fri May 04, 2018 8:02 am 
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Normally companies need an invoice before payments. So generate an invoice will help that you receive payment for the work.

accounting and bookkeeping services in dubai


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