protocol of compensation

[madalina]

Pls someone can sent me a model of compensation protocol between customer and supplier. Thx!

 

[Fidget]

Some things are covered by statute depending on laws of the country you live in. In EU countries, for example, airlines are obliged to offer compensation to passengers in certain circumstances.

In general though, there isn't a protocol as such, but what tends to happen is along the lines of this:

* Customer claims compensation
* Supplier denies liability
* Customer persists - supplier pays a token "goodwill" gesture
* Customer accepts - matter closed
* Customer refuses "goodwill" gesture
* Complaint escalates within supplier organisation
* Supplier responds with a better offer, or doesn't budge on the original offer
* Customer accepts - matter closed
* Customer refuses - matter escalates further. Could be involving local newspapers, trading standards organisations etc to support them.
* Supplier offers settlement, or doesn't
* Customer accepts - matter closed
* Customer doesn't accept - takes legal action
* Supplier backs down - doesn't want bad press, or the costs if it loses
* Customer happy - matter closed
* Supplier doesn't back down - matter goes to court
* Judge decides who's in the right.

That's not intended to be comprehensive, it's just to give an idea of how things might go.

 

[madalina]

Some things are covered by statute depending on laws of the country you live in. In EU countries, for example, airlines are obliged to offer compensation to passengers in certain circumstances.

In general though, there isn't a protocol as such, but what tends to happen is along the lines of this:

* Customer claims compensation
* Supplier denies liability
* Customer persists - supplier pays a token "goodwill" gesture
* Customer accepts - matter closed
* Customer refuses "goodwill" gesture
* Complaint escalates within supplier organisation
* Supplier responds with a better offer, or doesn't budge on the original offer
* Customer accepts - matter closed
* Customer refuses - matter escalates further. Could be involving local newspapers, trading standards organisations etc to support them.
* Supplier offers settlement, or doesn't
* Customer accepts - matter closed
* Customer doesn't accept - takes legal action
* Supplier backs down - doesn't want bad press, or the costs if it loses
* Customer happy - matter closed
* Supplier doesn't back down - matter goes to court
* Judge decides who's in the right.

That's not intended to be comprehensive, it's just to give an idea of how things might go.

Thx for answer...me all I need is a clearing model compensation between customer and supplier. For exemple: I want to compensate the invoices issue by me with the invoices receive from one supplier. Regarding the country of the company involve in this compensation, both are from UE.

 

[madalina]

Because my english is not so good, i will define the word -compensation- an item or amount that is or may be set off against another in the settlement of accounts (set-off)

 

[Fidget]

ok, that's a different thing and it's quite involved - it's offsetting financial instruments. Which accounting standards are you using? I can point you in the right direction under IFRS, but that's all.

 

[madalina]

I know what means offsetting, i know to record, i know that offsetting are prezentate in IAS 32, all i need, if u can, is just a draft, tample, model, shape, form for this off-set order

 

[Fidget]

This might be useful:

http://www.kpmg.com/Global/en/Issue...ns/Documents/first-impressions-offsetting.pdf

It's a step by step suggested method of applying the offsetting criteria.