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Don’t do it!!! 😉
We use a tried and tested system that might seem a bit strange at first but, trust me, it’s a lot, lot easier once you get your head round it.
Basically you send us in a claim for a call, it does not become an invoice until payment is raised. This stops several things, it saves being liable for VAT on the claim until you get paid (where VAT registered of course) and saves a whole load of grief with rejections, credit notes and debits et all.
Invoices sent in, unless authorised in advance, will be returned and slow up payment.
What you do is very, very simple…
You get a copy of the Amica claim sheet from this link
Next you get together the jobs you’ve completed that month.
Fill in the blanks on the claim sheet with the job details.
Put it in an envelope and post it. Scan and email them. Fax them. Doesn’t matter how they get to us so long as we have them before the end or the third week of the month they will be processed.
Keep a copy for yourself just in case it’s needed for some reason.
Once you get the payment back you can just log to your accounts package, if you use one and job done.
This saves everyone a lot of hassle, time and unnecessary paperwork as well as giving a cleaner accounting system for all.
K.
Re: Sending Back Invoices
Hi K,
Do we need to get the customer to sign the completed job sheet, the reason I ask is if we dont need a signature can we get the jobsheets in excel format. This would enable us to fill in all details on a pc and email all the jobsheets for the month with the claim sheet. It would also make it easier for the girls in the office to read the jobsheets…..
John
Re: Sending Back Invoices
Ken
Once you have authorised the summary sheet we send to you.
When do you require all the seperate invoices by?
Do these invoices then need to be sent to you before the end of that month?
Or are you saying you will pay for these jobs before you recieve our invoices? 😳
StevenRe: Sending Back Invoices
Woha…
No invoices, that’s the point… get the whole invoice thing out your head.
The point of this is to make it as simple as possible for everyone. So, you remove all the usual claptrap and deal with the core of it only.
Do not raise any invoices. We will effectively do that for you.
If you send an invoice it will be returned and it will delay payment if you do that.
I know this might be a bit hard to get your head around but it does actually make life simpler, especially for the people that do a lot of work for Amica.
All you need to do is fill out the claim sheet, send it back by whatever means suits you and, as soon as we approve it all and whatnot you get back a self-billed invoice. What that means is that Amica bills itself for the “warranty claims” you’ve made and, shortly thereafter, pays you for them.
In effect what happens is that any warranty CLAIM doesn’t turn into an invoice until it’s actually approved for payment. So, you have no VAT liability or tax liability until the claim is approved for payment.
I’m not explaining the too well obviously as it is really despicably simple. Not for us/Amica, but for you guys it’s the easiest system in the world.
What it means is that you don’t have to raise an invoice at all as such. All you need to do is, when you get the approval or payment, you log that as an invoice on your accounting system to Amica but, almost immediately or shortly after, you get payment.
In effect, you never need send an invoice to Amica, period. You just get paid.
I’m sorry if that’s not entirely clear and, if it isn’t, feel free to ask anything you like about it. It is designed to make life as easy as possible for you guys and to speed up payments and negate errors.
Basically, it saves you a shedload of stupid paperwork.
K.
Re: Sending Back Invoices
Ken,
This sounds like a great system. Can we introduce something similar for ISE warranty work. I’m sure it would make things easier for us engineers and the ISE office staff.Ron.
Re: Sending Back Invoices
May be simple for your end but sure is not for us. Most of our account packages will not cope with that system and will be impossible for us to keep records of the jobs we have done.
Jobs done in one month need to be invoiced in that month or surely there are other tax and legal implications? suppose one job on the claim is rejected for whatever reason? And if we (as I used to) pay engineers on a commision basis?
“bulk” invoicing has always been a PITA (IMO).Re: Sending Back Invoices
As the saying goes Mark… you can’t please all the people all the time…
But you try to please the most you can.
The trouble is that, regardless of what system you employ, someone won’t be happy and this is the easiest for most people to use.
There are no tax or VAT implications at all, systems like this are fairly common.
To keep a record all you need is the job details in whatever way you record them currently and a copy of the summary sheet. From them you should be able to tie everything up no problem as the payments will come back and relate to the previous claim. At the point you get that back you raise an invoice or, invoices if you prefer to do them one at a time. There’s really not a lot of difference at all.
I love bulk invoicing, it just saves so, so much time.
Ron, yes, I fully intend to implement the same system for ISE as well. But that is a bit more convoluted. 😕
K.
Re: Sending Back Invoices
I assume you mean the VAT change Mark.
Actually, it makes it a LOT easier.
VAT isn’t calculated until such times as an invoice is produced. So, the VAT rate that will apply is at the point of processing to an invoice, not at the point at which the work was carried out as we all know.
Therefore, any calls you submit in January that were done in December would have the new VAT rate applied at the point that it turns into an invoice. When the payment comes back you just apply the current VAT rate at that point in your accounting system, which should already be on the new VAT rate.
Simples. Actually a lot, lot simpler than faffing about with invoices from different periods with different VAT rates on them.
K.
Re: Sending Back Invoices
I don’t get it…
I just received a payment from Amica. The payment includes 17.5 {e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} VAT and if I now raise an invoice it puts 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} VAT on.How do we get round this?
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