The Book-keepers Forum (BKF)

Post Info TOPIC: Invoice Error


Veteran Member

Status: Offline
Posts: 37
Date:
Invoice Error
Permalink Closed


Hiya

I've just come across a bit of a strange one and was wondering if anybody could offer some advice please?

It appears that the system I use has a blip and has put an early settlement discount in place for one customer of 35% if paid within 30 days (we don't usually offer a discount). This has only just been noticed but three invoices have been sent out. The customer has just noticed on the latest invoice after having paid the other two in full.

Having now removed the discount from the account am I able to credit and reissue the invoices without the early settlement line and insist that he pays in full or do I need to honour them and refund the full amount he has paid the the first two invoices?

Many thanks for any advice you may have.

Regards

__________________

Trisha



Forum Moderator & Expert

Status: Offline
Posts: 11981
Date:
Permalink Closed

I think that you need to seek proper legal advice for this one.

For a contract to exist there must be offer, acceptance and consideration.

You made the offer of a 35% discount but the customer rejected this by paying the full amount rather than taking the discount. That would annul the original offer as it was not accepted but rather replaced by a counter offer of payment of the full amount.

For the remaining invoice if within the 30 days the offer is still open and could be accepted by the client.

If the goods or services have not already been supplied then this is not an offer by an invitation to treat in which case you are free to withdraw the offer (as was the situation in the pharmaceutical society of Great Britain vs Boots Cash Chemists (southern) 1952).

The impression that I get though is that the goods have already been supplied and it is my belief that if the customer pays the 65% in settlement of the erroneous bill they are actually justified to keep the goods.

Now lets introduce common sense.

How important is this customer to you?

What price do you put on your reputation?

As a goodwill gesture it may be to your benefit in the long run to honor the mistake but make the customer aware that it was a mistake (which was effectively a buy two get one free) otherwise they will expect similar discounts in the future.

The fact is that the customer has come back to you three times and was willing to pay the higher price.

Personally I would honor all three discounts even though for two of them there is potentially no reason to honor them as your offer was rejected.

As stated right at the beginning. If you do not honor the discounts then seek proper legal advice (which may cost more than honoring the discounts!).

Kind regards,

Shaun.

__________________

Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



Guru

Status: Offline
Posts: 882
Date:
Permalink Closed

invitation to treat....gosh that brings back memories of law classes!

I agree that the best way of dealing with this is to honour the discounts, as the customer will feel good and you will increase your reputation, making it more possible that they in turn will tell others of the good service they received.

Legally I'm only guessing that once you have sent the invoice out and the goods/service has been performed, then it would be difficult to argue your case, but I'm no lawyer and I would stick to my original thoughts.

P



__________________


Expert

Status: Offline
Posts: 1707
Date:
Permalink Closed

Isn't this why companies used to put "E&OE" on invoices? Is this no longer legally accepted?

__________________

Never buy black socks from a normal shop. They shaft you every time.

http://www.smbps.co.uk/



Expert

Status: Offline
Posts: 2256
Date:
Permalink Closed

I agree with what you have said here Shaun, for the sake of goodwill

I believe that if a genuine error has occured, say an arithmatic error (2+2=3), which is easily proveable then corrections are allowed. However this case is not quite the same, as it can be normal practice to offer an early settlement discount (although 35% seems extremely generous) and the point of it is to encourage early payment (in this case it worked!!).

I think O&OE, is still acceptable on an invoice but it would reasonable to assume that it applied to either an incorrect calculation or the ommision of goods/ services on the invoice.

Bill

__________________

 

 



Expert

Status: Offline
Posts: 1963
Date:
Permalink Closed

I still put E & O E on all my invoices (errors and ommissions excepted) as it is clearly an error. No one offers 35% for early settlement, perhaps 3.5%. I would be more inclined to say theer was an error and it was supposed to be 3.5%, I'm sure the customer would accept this. Do you have any other documentation with the price, like an order acknowledgement? (Not sure if this is a bookkeeping client or someother type of customer) Did the client pay the first two within the early discount period? Is the client arguing about it? I think goodwill can go two ways, but without knowing the amounts involved or potential future earnings ity's difficult to say either take the hit or argue the toss. I think you would have a case if you were to re-issue but like the guys have said if it comes to it talk to a friendly solicitor.

Rob

__________________
Rob
www.accounts-solutions.com
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About