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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
Ineffable23 · 27/05/2024 13:23

Presumably this is a cash issue rather than a budget issue? How big a business are you? How come you weren't planning in the cash outlay - because you have e.g. 30 day terms agreed with everyone which gives you time to sort a drawdown from somewhere when they come in?

I guess £200k seems enough that you would either know it was coming (if you weren't very big) or it wouldn't be a problem and could be resolved in a couple of days (if you were big).

Original poster
topaynowornot · 27/05/2024 13:25

@fieldsofbutterflies so you would hold onto the money in the bank accountant for every PO raised? Genuinely asking. I think that is over conservate. We do actually have the money there right now to pay it but I don't think we should pay it immediately I think I'll ask them to set up a payment schedule and pay it in installments over the next three weeks.

OP posts:
Jessie21 · 27/05/2024 13:25

You do realise that if the company cannot pay it within a certain amount of time the company will be wound up?

I would start looking for other jobs.

PotatoPudding · 27/05/2024 13:31

topaynowornot · 27/05/2024 13:25

@fieldsofbutterflies so you would hold onto the money in the bank accountant for every PO raised? Genuinely asking. I think that is over conservate. We do actually have the money there right now to pay it but I don't think we should pay it immediately I think I'll ask them to set up a payment schedule and pay it in installments over the next three weeks.

Yes, of course you would. You really need to learn how budgets work.

Also, why are engineers raising POs and not the accounts department?

taxguru · 27/05/2024 13:32

topaynowornot · 27/05/2024 13:25

@fieldsofbutterflies so you would hold onto the money in the bank accountant for every PO raised? Genuinely asking. I think that is over conservate. We do actually have the money there right now to pay it but I don't think we should pay it immediately I think I'll ask them to set up a payment schedule and pay it in installments over the next three weeks.

That's just being awkward for the sake of being awkward. Not very professional at all. I hope your firm don't need any favours from this supplier in the future as your Board/engineers won't be impressed if you've pissed them off for no reason!

fieldsofbutterflies · 27/05/2024 13:34

topaynowornot · 27/05/2024 13:25

@fieldsofbutterflies so you would hold onto the money in the bank accountant for every PO raised? Genuinely asking. I think that is over conservate. We do actually have the money there right now to pay it but I don't think we should pay it immediately I think I'll ask them to set up a payment schedule and pay it in installments over the next three weeks.

Yes, of course you should! I can't believe you're even asking, tbh.

Your company has had 200k of work done and now needs to pay their bill. Not in instalments over three weeks. In full. As soon as possible.

I run a business myself and never, ever book anything I couldn't afford to pay for that day.

Magnastorm · 27/05/2024 13:37

topaynowornot · 27/05/2024 13:25

@fieldsofbutterflies so you would hold onto the money in the bank accountant for every PO raised? Genuinely asking. I think that is over conservate. We do actually have the money there right now to pay it but I don't think we should pay it immediately I think I'll ask them to set up a payment schedule and pay it in installments over the next three weeks.

Yes.

Obviously if you have a PO raised and the work has been done/goods have been supplied then you should have the money available to pay for it.

If you have the money available, just sodding pay up.

Original poster
topaynowornot · 27/05/2024 13:44

We've come to an agreement.

There are lessons here for me to learn.

But I do think the main responsibility falls with them, if they want to be paid then they need to send an invoice. POs can often be completed but not invoiced until the product is shipped, or installed, or a certain amount of time has lapsed depending on the project.

OP posts:
SoupDragon · 27/05/2024 13:44

We do actually have the money there right now to pay it but I don't think we should pay it immediately

You're taking the piss then.

fieldsofbutterflies · 27/05/2024 13:46

topaynowornot · 27/05/2024 13:44

We've come to an agreement.

There are lessons here for me to learn.

But I do think the main responsibility falls with them, if they want to be paid then they need to send an invoice. POs can often be completed but not invoiced until the product is shipped, or installed, or a certain amount of time has lapsed depending on the project.

That was quick. And on a bank holiday too!

sulkingsock · 27/05/2024 13:52

Its probably someone internally at your end that has made a mistake or given the wrong info.

Original poster
topaynowornot · 27/05/2024 13:56

@fieldsofbutterflies I work in the EU not UK. Sorry never said that anywhere. It's not a bank holiday here.

@sulkingsock no they have advised they did not send the invoices.

We knew the expense was coming. It is on the cashflow but not to the paid this week.

I think if I had posted on here saying I had not sent invoices totaling to 200k does the customer have to pay me immediately the response would have been no.

OP posts:
fieldsofbutterflies · 27/05/2024 13:58

I think if I had posted on here saying I had not sent invoices totaling to 200k does the customer have to pay me immediately the response would have been no.

That's not quite the same as what you're posting though.

A customer demanding payment before it's due is one thing, but a business refusing to pay is quite another.

Captaine · 27/05/2024 14:00

ExtraOnions · 27/05/2024 11:34

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

if both answers are “yes”, just pay them

No don’t. Sending out invoices is actually a core function of a business and if you can’t be arsed then don’t expect other people to pick up the pieces of your incompetence.

Theredoubtableskins · 27/05/2024 14:09

fieldsofbutterflies · 27/05/2024 13:58

I think if I had posted on here saying I had not sent invoices totaling to 200k does the customer have to pay me immediately the response would have been no.

That's not quite the same as what you're posting though.

A customer demanding payment before it's due is one thing, but a business refusing to pay is quite another.

If the agreement with outside companies is that they must send the invoice and then payment is made within 5 weeks then that’s that. They’ve only just sent the invoice so should wait the 5 weeks for it to be paid. They can’t agree to terms, fail to hold up their side and then demand immediate payment. That’s not how you run a business.

The account department wont always know every job going on; they rely on the invoices and the 5 week payment term to move the cash. If another company doesn’t want to agree to those terms then they just don’t need to do business with the OP’s company. But if they agree to the terms and do business together, then they need to hold up their side.

I’m a sole trader. If I forget to send an invoice, then I know I will have a longer wait. Mine have to be paid within 28 days. I can’t just change the length of time and demand it immediately if I forgot to send the first invoice out.

Teenagequeenwithaloadedgun · 27/05/2024 14:16

Do they have a half year end in June, and would your usual credit terms take payment into July?

I'd pay it as the 200k should be in your cash flow forecast.

Original poster
topaynowornot · 27/05/2024 14:18

fieldsofbutterflies · 27/05/2024 13:58

I think if I had posted on here saying I had not sent invoices totaling to 200k does the customer have to pay me immediately the response would have been no.

That's not quite the same as what you're posting though.

A customer demanding payment before it's due is one thing, but a business refusing to pay is quite another.

It is the exact same thing. I am saying if my invoices were due but I hadn't sent an invoice, could I expect my customers to pay me immediately once I had realised my error and was chasing them for payment.

OP posts:
fieldsofbutterflies · 27/05/2024 14:18

I agree with you @Theredoubtableskins but OP was talking about not having the cash to pay and then deliberately messing them around.

fieldsofbutterflies · 27/05/2024 14:20

I don't agree @topaynowornot.

If someone doesn't send an invoice on time, that's on them and yes, they should wait for payment if that's the terms they've agreed to.

But you're talking about deliberately messing them around and not even having the cash to pay to begin with.

titchy · 27/05/2024 14:24

topaynowornot · 27/05/2024 13:25

@fieldsofbutterflies so you would hold onto the money in the bank accountant for every PO raised? Genuinely asking. I think that is over conservate. We do actually have the money there right now to pay it but I don't think we should pay it immediately I think I'll ask them to set up a payment schedule and pay it in installments over the next three weeks.

Earlier on in the thread you said you DIDNT have it Confused

greenpolarbear · 27/05/2024 14:25

I don't know what the law is where you are, but in the UK it's 30 days payment terms unless something else is agreed in the contract.

So in the UK you would need to refer to the contract, and if there's nothing different in the contract, tell them they can't backdate invoices and the payment terms are 30 days.

fieldsofbutterflies · 27/05/2024 14:25

There's a difference between following the terms of an invoice and deliberately messing someone around 🤷‍♀️

Original poster
topaynowornot · 27/05/2024 14:28

@fieldsofbutterflies I am not deliberately messing them around. My questions was "AIBU to think they should give me the full credit terms?" They have sent the invoice in today and saying they were are all due as of a few days ago. I don't think it is unreasonable that they take responsibility for some of their error.

@titchy we have the money in the account to pay right now but that money is ear marked to be paid out over the next few weeks. We have more money scheduled to come in too. We do a 5 week rolling budget. With other things further out but it's more accurate the closer we get. We keep a reserve in case our customer does pay on time

OP posts:
Merryoldgoat · 27/05/2024 14:28

You said they said they sent them, now you say they didn’t send them.

The you say you don’t have the money. And then you do. Which is it?

Regardless, you have process issues.

For large construction type contracts you would have agreed instalments from both client and supplier side if you are acting as main contractor.

Regardless of how long a contract takes there should be a completion plan and you should know if you’re running to schedule.

I’m incredulous that you weren’t aware a cost of this size was due.

A provision is all well and good but that’s accounting and not cash flow.

Original poster
topaynowornot · 27/05/2024 14:29

@Merryoldgoat they have agreed that they did not send them until today. Today is the first time that we received them

OP posts: