Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: derek west on February 13, 2011, 04:22:43 pm
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just done a big ish commercial and on the quote it said 10% discount if paid within 5 working days, do i send them 2 invoices or do i somehow incorporate the 2 sums on the same invoice, guessing theres a simple answer to this but i'm just not getting it. or do i send them the disounted invoice first and then after 5 days send them the full amount invoice.
anyone?
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I would send one invoice for the full amount and then add on there "10% Discount if paid by 20th Feb"
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Derek,
You send them one invoice for the FULL amount and then state that they can have 10% discount (state the discounted amount) if the payment REACHES you in 5 working days. Often, you'll get a customer that takes the 10% discount but the payment only reaches you two weeks later but the cheque is written within the 5 day period.
Simon
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theyve actually got my bank details and will be paying by BACS, but just wondered how to word the invoice or send 2. i'm expecting payment by wednesday, fingers crossed.
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In that case Derek send them an invoice for the discounted rate but make it clear that rate only applies till ___ and thereafter the higher rate applies £_____
Simon
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Send in the full invoice.
If paid within the 10% discount period just show this in your payment received, i.e.
Invoice £100 + VAT (£120)
Payment early of £90 + VAT (£108)
In your books enter £10 + VAT (£12) as a discount againt the invoice.
Remaining balance = £0
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Derek
We deal with a few companies who offer us discounted rate if the invoice is paid by an earlier than usual date. The invoice needs to be for the full amount and then at the bottom, as a footnote, it just needs to state "If payment is received by ..... a 10% discount will be applied - £??.??" The £??.?? needs to be the full amount minus the discount.
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What you do Derek is raise an invoice to the full amount before discount.
Presuming they pay it within the time limit and have deducted the amount they were entitled to, you simply raise a credit note for the difference and send it back to them.
This balances the books of both parties involved :)
So for example..... you charge me £100 but 10% discount if paid within a week. You send me the invoice for £100, I send you a cheque for £90, you send me a credit note for £10)
Simples :)
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all done, took mr kellys advice, fingers crossed i get some money in my bank before friday. i'll need it, theres a lot of maccie D's on the way to surrey. ;D