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Client has double paid an invoice

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    Client has double paid an invoice

    Looks like client co decided they wanted to be generous and replay my first invoice to them that they had already paid 10 months ago (only invoice amounts match) I have emailed the client to tell them and also let my accountant know not to treat it as revenue. I think they create a credit so it balances to zero as it's not my money.


    No response back from client co, am I obliged to do anything else if they don't respond? I'm thinking giving them a few weeks then prompting them again but beyond that what have others done? Offer to pay Boris's fine?
    Make Mercia Great Again!

    #2
    Originally posted by BlueSharp View Post
    Looks like client co decided they wanted to be generous and replay my first invoice to them that they had already paid 10 months ago (only invoice amounts match) I have emailed the client to tell them and also let my accountant know not to treat it as revenue. I think they create a credit so it balances to zero as it's not my money.


    No response back from client co, am I obliged to do anything else if they don't respond? I'm thinking giving them a few weeks then prompting them again but beyond that what have others done? Offer to pay Boris's fine?
    It's up to you to get the money back, not them. Send them a credit note for the full amount, quoting the original invoice details, and manually contra the entry in your accounts. It will have upset your VAT numbers as well, so a CN is the cleanest way to get the numbers right again.

    But (a) you should know this and (b) why is your accountant not sorting this out and advising you on how to proceed?
    Blog? What blog...?

    Comment


      #3
      Personally I'd push it harder than that. I'd do everything I can to sort it. Your last comment sounds like you really want to keep it and are looking to do the minimum in the hope they forget so are looking to us to justify you keeping it.

      IMO, and I know not everyone will agree, it's not my money, I don't want it and I certainly don't want any crap down the line so I'd be putting as much effort if in to sorting the issue as if it was the other way around. I know how I'd feel if I found a supplier put a half arsed attempt in to giving it back so I'd want it out of my bank and move on.

      You know the answer really, you just want to keep it but you shouldn't. Do everything you can to give it back and just move on.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        I believe (with usual IANAL, IANAA caveats) that keeping money paid to you in error, when you know it's an error, is called theft.

        Your options are to return the money or issue a credit note.

        You should promptly ensure the client's accounting team are made aware.

        Comment


          #5
          As I said I think the accountant will raise a credit note from looking online, I await their response. Why should I know that's the correct procedure? In 10 years of contracting this has never happened!

          I like the idea of sending them the credit note once I have it, keeps it nice and simple. Client accounts team were made aware a few days ago but have not responded (I have to chase every month for payment they are very disorganised) and I bought it up with the hiring manager yesterday who is also going to chase them. When I bought it up I offered the option of returning the money or writing it off against an outstanding balance - still waiting for their response.

          Thanks for the confirmation all, glad I'm doing the right thing here.
          Last edited by BlueSharp; 21 April 2022, 14:08.
          Make Mercia Great Again!

          Comment


            #6
            Originally posted by ladymuck View Post
            You should promptly ensure the client's accounting team are made aware.
            Yep and sending them an email and not bothering following up they don't response isn't making them aware IMO.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by BlueSharp View Post
              As I said I think the accountant will raise a credit note from looking online, I await their response. Why should I know that's the correct procedure? In 10 years of contracting this has never happened!
              Because you are a company director with a set of responsibilities that include having a basic knowledge of accounting good practice (which is what this is).

              I like the idea of sending them the credit note once I have it, keeps it nice and simple. Client accounts team were made aware a few days ago but have not responded (I have to chase every month for payment they are very disorganised) and I bought it up with the hiring manager yesterday who is also going to chase them. When I bought it up I offered the option of returning the money or writing it off against an outstanding balance - still waiting for their response.
              It's not an idea, it is the correct way to rectify the problem. If they then decide not to process your CN and offer some other route then fine, Just be certain your accounts are properly balanced and recorded.

              Thanks for the confirmation all, glad I'm doing the right thing here.
              Interesting interpretation of "right thing"... ... but you know the way forward now.
              Blog? What blog...?

              Comment


                #8
                Drawing on my days as an audit senior, the process back then which I still think is applicable now is to simply write to them to advise that they've overpaid and that you need their bank details to repay the cash. Meanwhile, it should be sat on your books under "Other Creditors". How many times you poke them for their details is up to you but if I recall back in the day, if you've received no response from them after two years, you can write it off as income in your business and pay the associated VAT to HMRC.

                Comment


                  #9
                  I’m not sure why people are advising you send the client a credit note - you would only do this if you’ve invoiced them for too much (a credit note reverses a sale).

                  An overpayment is not a sale, it just sits on your books as a creditor amount - you owe them the money. DR bank, CR other creditors. When you pay them back it’s the reverse, CR bank DR other creditors. It doesn’t touch your sales account.

                  You do need to chase them for their bank details and once you’ve got them, bank transfer it back again.

                  Alternatively, if you expect to send them more invoices and the client agrees, you can keep the money sitting in credit and apply it to a future invoice. In this case you could send them a balance statement showing they are in credit.

                  Here’s how you’d deal with it in FreeAgent, for example:
                  https://support.freeagent.com/hc/en-...rom-a-customer
                  Last edited by TheCyclingProgrammer; 22 April 2022, 00:10.

                  Comment


                    #10
                    Originally posted by TheCyclingProgrammer View Post
                    I’m not sure why people are advising you send the client a credit note - you would only do this if you’ve invoiced them for too much (a credit note reverses a sale).

                    An overpayment is not a sale, it just sits on your books as a creditor amount - you owe them the money. DR bank, CR other creditors. When you pay them back it’s the reverse, CR bank DR other creditors. It doesn’t touch your sales account.

                    You do need to chase them for their bank details and once you’ve got them, bank transfer it back again.

                    Alternatively, if you expect to send them more invoices and the client agrees, you can keep the money sitting in credit and apply it to a future invoice. In this case you could send them a balance statement showing they are in credit.

                    Here’s how you’d deal with it in FreeAgent, for example:
                    https://support.freeagent.com/hc/en-...rom-a-customer
                    Fair comment. I missed the somewhat relevant point about this being an re-payment of an old invoice rather than one issued in error/duplicate. My bad.
                    Blog? What blog...?

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