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more than one outstanding invoice with the same company

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11 years 9 months ago #685 by clive chittleburgh
Hi

I have more than one outstanding invoice with the same company. I have received some of the monies owed, but these were not allocated to a specific invoice. If i allocate them to the oldest invoice a balance would remain due on that invoice together with the full amount on the other invoices. all my invoices state "payment due by return", as no payment terms were agreed. My questions are:-

Do i raise a late payment letter for each invoice and charge the compensation fee each time.
On the invoice which is part paid, how do i set out the interest calculation.
With my statement on the invoices of "payment due by return" how many days after the invoice date should i leave before calculating the interest.

Thank you

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11 years 9 months ago #686 by David J
Hello GSI Projects

Yes you can raise a late payment claim for interest and compensation on each outstanding invoice.

Late payment interest and compensation start after the day after the debt became overdue. That is either the date of your agreed terms, or a default date of 30 days set by the legislation if no agreed terms were in place.

With regards to the part payment...
Calculate the interest owed and the daily interest rate on the full amount of the principal then show the interest and compensation owed to date along with part payment already received.

Regards

David

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11 years 9 months ago #687 by clive chittleburgh
Thank you David

with the part payments being received, do i have to calculate the interest on the reduced balance left after each part payment or do i continue claiming on the full amount until the debt is paid.

Regards

clive

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11 years 9 months ago #688 by David J
Hello Clive
Calculate on the full amount of the principal and work out the daily interest rate. This interest rate will stay the same until the principal, interest and compensation are paid in full.

If you download view pages 36 to 40 of the advanced calculator users guide here , there is a detailed explanation of how to deal with part payments and why.

Of course the option is yours to decide. If you feel that you would prefer to take into consideration the part payment then you can do that.

I hope that helps!

David

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