Accounting practice - seems strange to me

wagonrunner · Postby **wagonrunner** » October 29th, 2012, 4:35 pm

Knowledgeable folks,

Is it legal / normal to date an invoice for a monthly service on the 1st, send it out on the 25th as past due, and apply late charges the following month?

rollingstock · Postby **rollingstock** » October 29th, 2012, 4:41 pm

Seem legit to me

Postby **r3iXmann** » October 29th, 2012, 4:45 pm

this wouldn't happen to be the Red Bank, by chance?

wagonrunner · Postby **wagonrunner** » October 29th, 2012, 4:46 pm

nah, reixy, will post as soon as as meh scanner set up.
Cause i pay before time all the time, and wondering why i seeing late charges, which i don't pay btw.
Took a good read today though.

black start · Postby **black start** » October 29th, 2012, 4:53 pm

is it related to that place by medford there?
:lol:

rollingstock · Postby **rollingstock** » October 29th, 2012, 5:00 pm

Like yuh shoulda let de money Flow WR

nemisis · Postby **nemisis** » October 29th, 2012, 5:07 pm

Figured it was them he referring too, well op query and don't just go with the FLOW

rfari · Postby **rfari** » October 29th, 2012, 5:12 pm

OP if its a fixed cost why not just pay it before hand?

wagonrunner · Postby **wagonrunner** » October 29th, 2012, 5:15 pm

yuh right boy RS. LOL
no need to query.

I am asking if you can invoice for a month before the start of the month,
have the invoice due before the start of the month.
have the invoice past due when you do send the invoice

In other words, when is the billing date for the month of october?
according to their invoice, it seems Oct 2nd is past due.

And is that a common practice, or even legal?

N.B.
In August the invoice date was 1st August 2012, the due date was the 31st August 2012.
Their accounting was up to date then. dunno wtf happen between then and now.

EXODUS · Postby **EXODUS** » October 29th, 2012, 6:05 pm

thats d trend of most gov't businesses these day yes.
eg. Business Levy/Green Fund Tax- they want you to pay it exactly on the 1st of every month following every quarter (Jan-Mar period due on the 1st of Apr etc) and if not, they charging yuh interest. Why don't they have a leeway as with NIS, Health Surcharge due 15 days in the foll mth) VAT tax (due 25th of next mth foll 2 mth period) etc...

VexXx Dogg · Postby **VexXx Dogg** » October 29th, 2012, 6:06 pm

sounds like a company whose cash flow-ing.

bluesteel29 · Postby **bluesteel29** » October 29th, 2012, 6:57 pm

iz nuh jes me ha dat problem wit dis ISP?!?!?!?!?!???

X2 · Postby X2 » October 29th, 2012, 10:03 pm

RBL does a similar practice with my bill... always send it late... always has a late fee...

and no... I dont' remember to pay on time when I don't see a bill...lol

FTL · Postby **FTL** » October 30th, 2012, 7:38 am

wagonrunner wrote:I am asking if you can invoice for a month before the start of the month,
have the invoice due before the start of the month.
have the invoice past due when you do send the invoice

In other words, when is the billing date for the month of october?
according to their invoice, it seems Oct 2nd is past due.

And is that a common practice, or even legal?

An Invoice can be generated (and dated) in advance of the period for which the service is provided. This is legal, so long as it is in keeping with the terms of the contract for service agreement.

wagonrunner wrote:N.B.
In August the invoice date was 1st August 2012, the due date was the 31st August 2012.
Their accounting was up to date then. dunno wtf happen between then and now.

If the billing period and the invoice date are inconsistent with previous invoices you can query it. If they changed their billing practices they are required to notify you of same no less than 30 days before the next bill date (date when the changes take effect).

Postby **crazybalhead** » October 30th, 2012, 7:50 am

Correct Wagon., nothing wrong with the invoice, date, or date due.

Postby **crazybalhead** » October 30th, 2012, 7:52 am

BUT, although you might be scoffing at the late fee, it is a bad practice for the company to invoice and deliver said invoice so much later than the invoice date. This weill affect their AR, and cash flow, and it will look very bad on their books when they have the majority of the customers paying late. Poor management and business practice, but nothing technically worng with it.

wagonrunner · Postby **wagonrunner** » October 30th, 2012, 3:29 pm

crazybalhead wrote:Poor management and business practice, but nothing technically worng with it.

This opens the floodgates for all service providers to do same.

ronsin1 · Postby **ronsin1** » October 30th, 2012, 9:22 pm

I have a simple way to solve this problem it has proved effective for me

I normally pay the invoice after the due date so the late fee will apply

wagonrunner · Postby **wagonrunner** » October 31st, 2012, 12:15 am

i always pay the invoice. I don't pay the late fee nor the vat on it though.

jmccomie · Postby **jmccomie** » October 31st, 2012, 10:39 am

if the service is for the period of October why dont they bill u on the 1st of October? unless they require u to pay in advance thus payin on or before the 3oth September would be on time and anything after would be late. What ever happen to the accruals concept!!