Customer purchased goods from us in April but did not pay invoice within terms and became delinquent. A partial payment was made in September and the customer advised us the middle of October (after numerous calls and past due statements from us) that post dated checks were submitted and did...
not include payment of late or finance charges. Those checks were mailed directly to our bank. Our bank's normally lock box procedures are to immediately deposit checks received and if any check is returned from the processing as NSF to redeposit a 2nd time. At this point, it appears all checks cleared and we have been paid in full less the late / finance fees. When customer placed order they agreed to 30 day terms after goods provided, but we were paid beyond 130 days. In the interest of resolving, we posted a goodwill adjustment to the customer's account to remove the late finance charges and consider the order paid in full.
Customer purchased goods from us in April but did not pay invoice within terms and became delinquent. A partial payment was made in September and the customer advised us the middle of October (after numerous calls and past due statements from us) that post dated checks were submitted and did...
not include payment of late or finance charges. Those checks were mailed directly to our bank. Our bank's normally lock box procedures are to immediately deposit checks received and if any check is returned from the processing as NSF to redeposit a 2nd time. At this point, it appears all checks cleared and we have been paid in full less the late / finance fees. When customer placed order they agreed to 30 day terms after goods provided, but we were paid beyond 130 days. In the interest of resolving, we posted a goodwill adjustment to the customer's account to remove the late finance charges and consider the order paid in full.