Wb123 Posted October 8, 2020 Report Share Posted October 8, 2020 I just noticed that one of the public bodies I occasionally undertake a little work for has been paying a rate ‘net of early payment discount’ despite still taking months to settle the bill and at non negotiable rates. (There is the option not to do the work at all however at present I have spare time, and in normal times not doing the work would have knock on effects on other work). Is this normal? Quote Link to comment Share on other sites More sharing options...
amateur Posted October 8, 2020 Report Share Posted October 8, 2020 Query it. Accounts people do make mistakes! Quote Link to comment Share on other sites More sharing options...
discobob Posted October 8, 2020 Report Share Posted October 8, 2020 Check the contract Quote Link to comment Share on other sites More sharing options...
Eyefor Posted October 8, 2020 Report Share Posted October 8, 2020 Increase the price. Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted October 8, 2020 Report Share Posted October 8, 2020 (edited) Quite normal to have early settlement discounts and quite normal for companies to expect suppliers to honour them even though they havent settled early! Its up to you if the couple of percent is worth the hassle. Edited October 8, 2020 by ferguson_tom Quote Link to comment Share on other sites More sharing options...
bluesj Posted October 8, 2020 Report Share Posted October 8, 2020 The one we do work for has it as an option when invoicing. Quote Link to comment Share on other sites More sharing options...
Bobba Posted October 9, 2020 Report Share Posted October 9, 2020 As an accountant I was once a Finance Officer for a mail order Co. one of our clients was a high street chain which always took early settlement discount even when paying late and despite our invoices stating 30 day settlement. Their entitlement was in their conditions on the reverse of their purchase order. Many times a local branch would email an order. It didn’t quote a PO No which followed some time later. Fed up with their business practice I raised an invoice reclaiming all of the misclaimed discounts. Over a year it was in the £’000’s .Part of their response was it was their business practice and if we didn’t like it they’d place orders elsewhere! My owner/ director was incensed at the bullyboy tactics. We identified a senior director in their organisation and sent him a Letter before Action. The invoice was paid with an apology and orders continued. we had the time, resources, commitment and energy to do this. But for sole trader the circumstances may dictate putting up with it. Sadly. Quote Link to comment Share on other sites More sharing options...
figgy Posted October 9, 2020 Report Share Posted October 9, 2020 Increase your price accordingly, easy. Quote Link to comment Share on other sites More sharing options...
amateur Posted October 9, 2020 Report Share Posted October 9, 2020 1 hour ago, Bobba said: As an accountant I was once a Finance Officer for a mail order Co. one of our clients was a high street chain which always took early settlement discount even when paying late and despite our invoices stating 30 day settlement. Their entitlement was in their conditions on the reverse of their purchase order. Many times a local branch would email an order. It didn’t quote a PO No which followed some time later. Fed up with their business practice I raised an invoice reclaiming all of the misclaimed discounts. Over a year it was in the £’000’s .Part of their response was it was their business practice and if we didn’t like it they’d place orders elsewhere! My owner/ director was incensed at the bullyboy tactics. We identified a senior director in their organisation and sent him a Letter before Action. The invoice was paid with an apology and orders continued. we had the time, resources, commitment and energy to do this. But for sole trader the circumstances may dictate putting up with it. Sadly. That was my experience in business, too. Often the customer's payment system was set to take the discount as the default, and a conversation might well remedy it. Of course you always get the sharp practice merchants, but they either had a price increase to compensate or told to take their business elsewhere Quote Link to comment Share on other sites More sharing options...
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