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AIBU?

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Original poster

To not pay over due invoices I just received immediately?

117 replies

topaynowornot · 27/05/2024 11:30

I am an accountant and work in the accounts department for a mid size company.

I have just received several overdue invoices from a supplier. All sent with high importance asking for them to be paid now. They are over due but I have never received them before so haven't been scheduling them.

I asked and they said 'their system sends them' she said she can't find the emails that were sent to me, well that's not my fault. Our systems sends things too but a copy goes to my email address, so this makes me think she hasn't sent them to the right place or at all. I have asked that they honour their usual credit term. She has said she's not sure they can do that.

It's for a very large amount. I do keep an eye on POs that have been raised and have provided for this to be paid at some point this year but some POs are not completed for months.

AIBU to think they should give me the full credit terms?

OP posts:
fieldsofbutterflies · 27/05/2024 12:01

topaynowornot · 27/05/2024 11:36

@ExtraOnions yes we owe it. No we don't have it. I do a 5 week payment schedule and since we didn't have their invoices did put it into the schedule it's just shy of £200k they are looking

Why don't you have the money if the work has been done? Confused

PotatoPudding · 27/05/2024 12:01

£200k is not a small sum. If you are the company accountant and not just the accounts assistant, this purchase would be accounted for in your budget and in your cash flow forecast. It shouldn’t have been a surprise and the cash should be available unless your customers have failed to pay you, but this isn’t your supplier’s concern.

I schedule invoices automatically but I don’t bother emailing myself a copy, as you don’t argue with a supplier about whether or not they received the invoice. Instead, you look at how the payment issue can be resolved.

I suggest you come to an agreement that suits you both. It’s in their interest to get paid, so they will probably be accommodating.

Oblomov24 · 27/05/2024 12:01

What sort of accountant are you? You seem to have gaps of knowledge. When doing the WIP and o/s PO's at m/e then this Beth calculation would have been done.

mitogoshi · 27/05/2024 12:00

Surely there's some sort of procurement process that means you know to expect these sorts of transactions? I've managed a lm accounts department and for every transaction over £500 I had a procurement order to match the invoice too when it arrived and so I knew when they hadn't. For smaller routine amounts eg stationary we had a different process

Merryoldgoat · 27/05/2024 11:59

This is a real process issue.

You don’t need to have purchase orders to be effective, but if you DO use them they need to be used properly, signed off when complete etc and proper commitment reports weekly so you can manage your cash.

AhBiscuits · 27/05/2024 11:58

Well if you don't have the money surely there's no choice, you can't pay it immediately.

anunlikelyseahorse · 27/05/2024 11:58

As you're an accountant I'm a bit worried about your book keeping/ systems. The company should have known there was a significant invoice coming in, and prepared for it accordingly, by holding the money back.
I mean they should have got their invoices in sooner, and maybe they did or maybe they had a tech. Issue, but ultimately it's [your] company's responsibility to make sure funds are available.

taxguru · 27/05/2024 11:56

YABU. Your systems would know there had been purchase orders raised. Your systems should show the goods/services had been delivered. You must either have poor systems or not been monitoring them, not to have known there were goods/services received for which you'd not received invoices and which were due for payment, especially given the large amounts involved. Surely these liabilities would have been identified/provided for in your monthly management accounts??

caringcarer · 27/05/2024 11:55

If you've wracked up invoices worth £200k you must have known about it. If you've already had the credit terms from time work/service then pay up.

Oblomov24 · 27/05/2024 11:52

YABU. The money is owed. And you should know that. You are missing the point re your own system failures for not spotting that the invoice had not yet been logged/sent by supplier. If the system had worked properly you wouldn't be in this position.

Merryoldgoat · 27/05/2024 11:52

I don’t understand how you could have incurred such large costs and not be expecting the invoices to be paid shortly afterwards.

If you don’t have the money why are you placing orders of that magnitude?

Is your company insolvent?

I’m an FM and if we had incurred £200k of expenses I’d know about it.

Overtheatlantic · 27/05/2024 11:50

Time to write a policy for exactly this scenario.

Sirzy · 27/05/2024 11:48

Surely you knew the work had been done/products provided though?

irrespective of where the error was the question is is this a client worth pissing off by not paying?

Original poster
topaynowornot · 27/05/2024 11:45

@Justsmileanwave it's a large enough company as well with an accounts department. I have had emails from sole traders before about not having sent their invoice and could we possibly pay. Usually I do that day

OP posts:
Justsmileanwave · 27/05/2024 11:37

As someone self employed & sends out invoices. There may have been an error somewhere but the money is over due so I'd pay it. It's the company paying it.......the company might really need this invoice paying to pay bills ect.

Original poster
topaynowornot · 27/05/2024 11:36

@ExtraOnions yes we owe it. No we don't have it. I do a 5 week payment schedule and since we didn't have their invoices did put it into the schedule it's just shy of £200k they are looking

OP posts:
ExtraOnions · 27/05/2024 11:34

Do you owe the money ?
Do you have the money ?

if both answers are “yes”, just pay them