Chapter 4: Process payments from customers Flashcards
Who is remittance advice between
Customer sends to seller
How is payment received?
By cheque or BACS
What must be done when Remittance advice is received?
It must be checked carefuly against the sales documentation held by the seller
And the customer’s account in the seller’s sales ledger.
The Amount rec’d must be the correct amount..
What documentation must be checked when remittance advice is received?
Invoices
Credit Notes
Remittance Advice itself.
What must be chequed when a cheque is received?
The cheque must be checked to ensure that it is valid
What must be checked when a payment is made through the BACS?
The Bank Statement must be checked in due course to confirm that the payment has been received.
What can discrepancies relating to payments be caused by?
Underpayments
Overpayments
Settlement Discount
eg. Underpayment problem?
A disputed invoice may not have been included
eg. Overpayment problem?
A Credit note may have been ignored, or an invoice paid twice
eg. Settlement Discount problem?
Incorrect discount rate
Expired discount rate
No discount available
What must be done in all cases of discrepancies relating to payments?
The discrepancy must be communicated to the customer
So that an appropriate adjustment can be made.
