Invoicing query


J

JimmyT

I run a small business, and recently a customer ordered my product, but had
a friend pay for it with their credit card. I issued a (receipted) invoice
in the card holder's name and address, showing the delivery name and
address, which was to the customer, and enclosed it with the goods.

Now the customer is asking me for an invoice in his own name (he is using
the product for his business). What is my correct procedure? Should I --
a) tell him sorry I have already issued a correct invoice. Get your friend
to invoice you for the amount
b) something else??

Thanks
--
 
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R

Ronald Raygun

JimmyT said:
I run a small business, and recently a customer ordered my product, but
had a friend pay for it with their credit card. I issued a (receipted)
invoice in the card holder's name and address, showing the delivery name
and address, which was to the customer, and enclosed it with the goods.

Now the customer is asking me for an invoice in his own name (he is using
the product for his business). What is my correct procedure? Should I --
a) tell him sorry I have already issued a correct invoice. Get your friend
to invoice you for the amount
b) something else??
Cancel the invoice to the customer's friend (by issuing a negative invoice,
also known as a credit note), and issue an invoice to the customer as
requested. It was a mistake to have issued an invoice in the friend's name.

To be safe against being scammed, don't receipt the new invoice unless
and until you get the first receipt back.
 
J

JimmyT

Thanks for that RR, I'll do as you suggest. (Are you an accountant?)
But for future reference --
1) why was it a mistake on my part? I had no idea that the cardholder was
placing the order for someone else, simply that they requested it to be
delivered to a different name and address.
2) are you saying I should ask for the first invoice back?
Thanks for any clarification
JT





| JimmyT wrote:
|
| > I run a small business, and recently a customer ordered my product, but
| > had a friend pay for it with their credit card. I issued a (receipted)
| > invoice in the card holder's name and address, showing the delivery name
| > and address, which was to the customer, and enclosed it with the goods.
| >
| > Now the customer is asking me for an invoice in his own name (he is
using
| > the product for his business). What is my correct procedure? Should I --
| > a) tell him sorry I have already issued a correct invoice. Get your
friend
| > to invoice you for the amount
| > b) something else??
|
| Cancel the invoice to the customer's friend (by issuing a negative
invoice,
| also known as a credit note), and issue an invoice to the customer as
| requested. It was a mistake to have issued an invoice in the friend's
name.
|
| To be safe against being scammed, don't receipt the new invoice unless
| and until you get the first receipt back.
|
 
T

Troy Steadman

Thanks for that RR, I'll do as you suggest. (Are you an accountant?)
But for future reference --
1) why was it a mistake on my part? I had no idea that the cardholder was
placing the order for someone else, simply that they requested it to be
delivered to a different name and address.
Your mistake is in "top posting" in Usenet :)
2) are you saying I should ask for the first invoice back?
No need because the credit note has cancelled the first invoice. Write
on the credit note the number of the invoice that is being credited,
and a very brief explanation, and everything is done.
 
R

Ronald Raygun

JimmyT said:
Thanks for that RR, I'll do as you suggest.
You have just supplied additional information and this has
caused me to change my mind. Or maybe not. Read on.
(Are you an accountant?)
No.

But for future reference --
1) why was it a mistake on my part?
It was (or would have been) a mistake if what I thought you said [and
what in fact you did say] had happened. You said a customer (call
him Mr X) ordered something and had a friend (call him Mr Y) pay for
it.

You should always issue the invoice in the name of the customer, not
in the name of who pays the bill (if different, usually they are one
and the same). You might issue the receipt in the name of who paid
for it, though.
I had no idea that the cardholder was
placing the order for someone else, simply that they requested it to be
delivered to a different name and address.
Ah, now that's a different story from what you first said. Probably
what you first said was based on new information after the event, and
initially, at the time you processed the order, you assumed Mr Y was
the real customer but was merely having the goods shipped to Mr X.

It doesn't really matter whose name you issue the invoice in, and it
seems that for some reason best known to himself Mr X is keen to have
an invoice in his own name and not that of his friend. You may as well
comply with his request. To keep your bookkeeping system in order,
you ought to cancel the first invoice by issuing a credit note.
2) are you saying I should ask for the first invoice back?
Thanks for any clarification
No, I'm only saying you should ask for the first receipt back if
you were planning to send a second receipt. This is only to
prevent a hypothetical complication arising where Mr X finds the
goods suddenly developing a fault, sending them back, and then
*both X and Y* wanting their money back because they both have
proof (documented by your two receipts) that they have paid you.

The simplest thing to do would be just to send X a new invoice in
X's name, together with a credit note in Y's name, but without a
new receipt. If Mr X wants his own documentation to be perfect,
he could ask his friend to give him your original receipt, if he
doesn't have it already, and also an additional receipt of his own
(i.e. to X signed by Y) to confirm that Y has received X's cash
or cheque. Those two receipts taken together (one from you to Y
and the other from Y to X) are equivalent to a single receipt
from you to X.
 
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J

JimmyT

| JimmyT wrote:
|
| > Thanks for that RR, I'll do as you suggest.
|
| You have just supplied additional information and this has
| caused me to change my mind. Or maybe not. Read on.
|
| > (Are you an accountant?)
|
| No.
|
| > But for future reference --
| > 1) why was it a mistake on my part?
|
| It was (or would have been) a mistake if what I thought you said [and
| what in fact you did say] had happened. You said a customer (call
| him Mr X) ordered something and had a friend (call him Mr Y) pay for
| it.
|
| You should always issue the invoice in the name of the customer, not
| in the name of who pays the bill (if different, usually they are one
| and the same). You might issue the receipt in the name of who paid
| for it, though.
|
| > I had no idea that the cardholder was
| > placing the order for someone else, simply that they requested it to be
| > delivered to a different name and address.
|
| Ah, now that's a different story from what you first said. Probably
| what you first said was based on new information after the event, and
| initially, at the time you processed the order, you assumed Mr Y was
| the real customer but was merely having the goods shipped to Mr X.
|
| It doesn't really matter whose name you issue the invoice in, and it
| seems that for some reason best known to himself Mr X is keen to have
| an invoice in his own name and not that of his friend. You may as well
| comply with his request. To keep your bookkeeping system in order,
| you ought to cancel the first invoice by issuing a credit note.
|
| > 2) are you saying I should ask for the first invoice back?
| > Thanks for any clarification
|
| No, I'm only saying you should ask for the first receipt back if
| you were planning to send a second receipt. This is only to
| prevent a hypothetical complication arising where Mr X finds the
| goods suddenly developing a fault, sending them back, and then
| *both X and Y* wanting their money back because they both have
| proof (documented by your two receipts) that they have paid you.
|
| The simplest thing to do would be just to send X a new invoice in
| X's name, together with a credit note in Y's name, but without a
| new receipt. If Mr X wants his own documentation to be perfect,
| he could ask his friend to give him your original receipt, if he
| doesn't have it already, and also an additional receipt of his own
| (i.e. to X signed by Y) to confirm that Y has received X's cash
| or cheque. Those two receipts taken together (one from you to Y
| and the other from Y to X) are equivalent to a single receipt
| from you to X.
|


Yes you're right I didn't make the circumstances clear before - trying to
keep it simple! Anyway many thanks for clarifying the best way to deal with
this and other such occurrences, that's really helpful.
JT
-
 
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