Hitting the Books --Dickeson
What about cartons or special packaging? Who pays for them? Is it to be on the invoice? Or separately invoiced?
And what about all those customer change orders—the debits and credits that occur during the course of production? Summarize or detail? My personal rule, in this electronic age, is that every customer change must be documented by an e-mail that sets out the change, who ordered it, when, and the adjusting debit or credit in dollars. Want detail? Send the file of e-mails. What? No e-mails on file? Then, no credit or debit! Simple. Got a better method? Let's hear it.
Counts? Overs and unders? To me that's a relic of a by-gone day. Scrap it. It's just an excuse for delaying the invoice. You can't possibly make up the few bucks you might gain or lose while delaying your invoice awaiting someone's guess of final count.
Does the invoice state explicitly when it's due? Thirty days means from the date the invoice issues. Give the customer a break. Compute it for them. Tell your computer to add 30 days to its issue date and print it in bold face right next to the bold face total due.
E-Mail Saves Time
Again, this is the age of electronics. Issue the invoice by e-mail. Make sure you know the proper e-mail address of the party to whom it should be sent. This also gives you a good excuse for a phone call asking, "Is a mailed hard copy necessary?" If not, "Is everything in good order, clear and understandable?" E-mail starts the collection period 48 hours or 56 hours earlier than snail-mail. We're gonna make that objective!
Wait a damned minute. What about that quick-pay discount? Are you still allowing that discount? If you are, I want you to make that the subject of some of your study. Is it really working like it's supposed to or is it just complicating the amount due on the invoice? Theoretically, the customer is supposed to get a discount of 1 percent or 2 percent if he pays the invoice in full within 10 days. But how many of them ever do? How many customers take that discount long after the 10 days have expired? My strong suggestion is that you look hard at this feature and probably scrap it in order to clean up the invoice and get rid of a sore point.