Originally posted by ThisScepteredIsle
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What seems to have happened (and please correct me if I'm wrong since it is largely guesswork from the somewhat limited information).
1. An invoice has been raised by you (or rather somebody on your behalf which is a potential warning signal) for some amount, let's call it £1,000, to your agency for services you have provided for their client.
2. Agency has accidentally paid £1,000 to SomeUmbrella.
3. SomeUmbrella has paid you (into your personal account has it happens) the net from this. Lets call it £700
4. You (well your "management") propose to rectify this by issuing another invoice for £300 (the difference between the original invoice and the net payment you received from SomeUmbrella).
There is quite a lot wrong with that. (Not least of which is you are carrying a creditor from 300 quid forwards; even assuming some attempt is done to reconcile the personal payment received).
The only way it can really be rectified is:-
a) Return the payment to the umbrella.
b) Umbrella unwind this (which will be a pain for them but nevertheless what were they doing taking payments for somebody they don't employ and putting it through payroll)
c) Agency actually pay the invoice to your company correctly
I think this was mentioned but didn't want to be heard.
There is an alternative:-
1. Issue a credit note for the value of the original invoice. You sales ledger is then still correct
2. Accept the personal payment from the Brolly.
Of course this leaves you out of pocket by (part of) the deductions (and it will complicate your SATR slightly).
You could then of course negotiate with the agent and see if they will accept an invoice for the difference (actually this over compensates you but I will gloss over that).
Perhaps this is what you mean when you describe the raising of another invoice.
However, at the end of the day it is the agency problem (assuming that contracts were appropriately agreed etc). They have not strictly paid the invoice so you could chase it up. Ok, they have made a random payment to a random umbrella instead, but that is really their problem not yours.
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