Do you ever invoice before delivery?
Discussion
Whilst it isn't the biggest deal in the world as we usually pay upon receipt of invoice, I am getting slightly wound up with our biggest supplier at the moment. We ordered goods last Friday, they are due to be delivered tomorrow afternoon and I have just received, by email, the invoice for this delivery which is dated yesterday. Considering I haven't even booked the goods into our system, as I don't have a delivery note to book the stock in, I find it a bit cheeky to get an invoice.
I know I should just move on, and certainly not rant, but I think the missus is going to leave me if I moan about work once more this week! Small business, eh?
So, my rather convoluted ramblings lead me to this question; if you invoice before delivery, why do you do so? Especially as terms on most invoices received are applicable upon receipt of invoice, not receipt of goods.
I know I should just move on, and certainly not rant, but I think the missus is going to leave me if I moan about work once more this week! Small business, eh?
So, my rather convoluted ramblings lead me to this question; if you invoice before delivery, why do you do so? Especially as terms on most invoices received are applicable upon receipt of invoice, not receipt of goods.
Simpo Two said:
It is rather brusque unless agreed, but what are the payment terms?
I was once asked to invoice several months in advance, as the client wanted to spend the money then but couldn't proceed with the project until the following year. So I did. Of course when the next year arrived it felt as if I had to do the work for free!
Another time I was asked to send in a £10K invoice in advance, and a month later the project was cancelled, which rather dented my Christmas. Such is the problem with blue chips; if the gestation period of a project is 9 months but the company changes all its plans or shuffles people about every 6 months in the name of progress, nothing starts.
Payment terms are 30 days from invoice, but we usually pay straight away as it is budgeted to have at least 2 deliveries a month so the money is already allocated in the accounts. We always invoice in one go to every customer at month end, some pay straight away, others we know not to chase until 90 days, I guess everyone has a different view on how to handle cash flow.I was once asked to invoice several months in advance, as the client wanted to spend the money then but couldn't proceed with the project until the following year. So I did. Of course when the next year arrived it felt as if I had to do the work for free!
Another time I was asked to send in a £10K invoice in advance, and a month later the project was cancelled, which rather dented my Christmas. Such is the problem with blue chips; if the gestation period of a project is 9 months but the company changes all its plans or shuffles people about every 6 months in the name of progress, nothing starts.
Disastrous said:
To get paid sooner? To deal with the inevitable f
king about that occurs (not from you, I mean in general. The "oh can you resend it?" nonsense)?
Most courses I've attended on cashflow management stress the importance of invoicing as quickly as possible in the process - I'd invoice before they'd signed the deal if I could!
Assuming the kit arrives when it should and is satisfactory, I wouldn't worry about it all.
I agree on all points, and I'd invoice weekly if I could but the MD is against it (he's also my dad). I suppose I shouldn't get worried about it, I just find it a bit cheeky but then as we are a big customer for this supplier, I guess they know we will pay before 30 days anyway, so they just send it once the consignment has left their premises (delivered by a third party) so they don't have to remember to do it a day or two later.king about that occurs (not from you, I mean in general. The "oh can you resend it?" nonsense)? Most courses I've attended on cashflow management stress the importance of invoicing as quickly as possible in the process - I'd invoice before they'd signed the deal if I could!
Assuming the kit arrives when it should and is satisfactory, I wouldn't worry about it all.
johnfm said:
You agreed a contract for the purchase of widgets when you agreed spec, price, delivery etc.
At that point you are obliged to pay and he is obliged to deliver the widgets.
Why should the supplier have to wait until delivery unless it was an agreed term?
If it winds you up, just agree invoice on delivery as part of the deal.
Invoice upon delivery is the agreement.At that point you are obliged to pay and he is obliged to deliver the widgets.
Why should the supplier have to wait until delivery unless it was an agreed term?
If it winds you up, just agree invoice on delivery as part of the deal.
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