Invoice Dating

innyminy
innyminy Registered Posts: 7 New contributor 🐸
in General accounting discussion
Hello
Just looking for some agreement (or not) really -
I have just been chasing some payments, and a relatively new customer of ours has turned around and said we are dating our invoices illegally!
Situation is, we despatched some goods from our factory on the 29th May. We dated the invoice 29th May. Goods on next working day delivery arrive correctly on 1st June (weekend in the middle).
They have turned around and said "The law states that the invoice date should be the date title of the goods is transferred, ie the delivery date. If you are illegally dating invoices then you will need to make your MD aware of this. We can only pay you based on the delivery date and not a pre dated invoice."
Well, as far as I have always been aware, invoice date is date of supply. We supplied the goods 29th May!! Generally title transfers when they pay, according to our t's and c's.
Have I got this really wrong, or is she talking rubbish?!! HMRC website states for VAT the date is date of supply....
Thanks for any thoughts!
innyminy

Comments

  • sarahwilson
    sarahwilson Registered Posts: 567 Epic contributor 🐘
    Sounds like shes talking cobblers to me.

    Some firms will put a June delivery invoice into June, if for example they asked for a delivery in June but you have despatched and invoiced at the end of May. Theres nothing illegal about what you are doing as far as I know, I've been invoicing people like this for 13 years.

    Seems to me what you have there is a know all, know f*** all!!
  • tripod333
    tripod333 Registered Posts: 20 New contributor 🐸
    I agree you are doing nothing wrong. There are various tax points ie basic and actual which cover both delivery date, pre-delivery date and post delivery date.

    This is a delay tactic and not an acceptable excuse not to pay. The business are more than likely having cashflow problems which is probably the real reason they are not paying.
    The invoice date being before or after a delivery date is not a legitimate reason for not paying an invoice. :thumbup1:
  • Toffeemadblue
    Toffeemadblue Registered Posts: 102 Dedicated contributor 🦉
    Yes completely agree with the other posters, this is nonsense and probably a delaying tactic, almost all companies I have dealt with have an invoice dated when the invoice is raised. If there is a significant difference between the date of invoice and supply it would be reasonable to extend the credit period to account for this, but in the scenario you mention this is obviously not the case and I would watch this customer closely.
  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
    Yup, fully agree with all of the above ref the feeble cash control excuse. Nice try though!
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
    And I'd misunderstood the thread title
    I was expecting to see one invoice looking to meet another with a view to going off for a meal and a visit to the cimema, perhaps followed by dancing.

    Perhaps I could offer a couple of high maintenance purchase invoices looking for friendly dates. I would be willing to walk down the aisle and give them away, after a suitable courtship.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • mikes
    mikes Registered Posts: 254 Dedicated contributor 🦉
    Nice one Sandy, Brilliant.:lol:
  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
    SandyHood wrote: »
    And I'd misunderstood the thread title
    I was expecting to see one invoice looking to meet another with a view to going off for a meal and a visit to the cimema, perhaps followed by dancing.

    Perhaps I could offer a couple of high maintenance purchase invoices looking for friendly dates. I would be willing to walk down the aisle and give them away, after a suitable courtship.

    :lol::lol:
  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
    Blimey, Sandy must have swine flu...
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    SandyHood wrote: »
    And I'd misunderstood the thread title
    I was expecting to see one invoice looking to meet another with a view to going off for a meal and a visit to the cimema, perhaps followed by dancing.

    Perhaps I could offer a couple of high maintenance purchase invoices looking for friendly dates. I would be willing to walk down the aisle and give them away, after a suitable courtship.

    :lol::lol:

    And who knows in a couple of years they may even reconcile and raise little invoices of their own :lol:
  • innyminy
    innyminy Registered Posts: 7 New contributor 🐸
    Thanks all. I know really she's talking out her backside but when someone suddenly tells you you're doing something illegal sometimes sets a seed of doubt in the mind.:001_unsure:

    As for dating invoices - pmsl:lol:
  • progmetalgod
    progmetalgod Registered Posts: 4 New contributor 🐸
    She's definitely talking nonsense as the invoice date is usually the date of the order (as long as it remains in the same month when terms are on a 30, 60 etc net monthly basis) or on the date the goods were despatched, unless the customer specifically requested the goods be sent at a later date.

Categories

Privacy Policy