3B: Resolve creditor inquiries or refer to appropriate person

From time to time a creditor will make a finance enquiry. Invoice queries made by creditors can

include:
overdue invoices
discrepancies between amounts paid and amounts invoiced
details of contracts/ agreements to supply goods/ services
payment time frames
purchase order numbers/ paperwork
contact details for people in the purchasing business
GST

Sometimes these enquiries will be made by phone but it is increasingly common for people to
make enquiries via email. When dealing with an email enquiry make sure that they fully
understand the nature of the enquiry. Sometimes, when people write emails they do not provide
enough context, or sufficient details, for a payments clerk to follow the matter up. If this is the
case then it is best to ring the person and speak to them.

By having a direct conversation the payments clerk is able to ask additional questions and might
also be able to resolve the matter then and there, saving time and effort later on. An additional
benefit of having a conversation with someone is that it is an opportunity to build rapport with
them and, where appropriate, reassure them that their concern will be taken seriously.

Sometimes in order for the caller's question to be answered, they need to be placed on hold, for
example if the payments clerk needs to speak with a supervisor, check a file or needs to look
something up on their system. When placing a caller on hold firstly ask if that is acceptable and wait
until they get an affirmative answer before activating the hold mechanism.

If the caller is going to be on hold for more than about two minutes it is best to advise the caller of this
by saying something like 'I just need to go and check the contract for you, this might take me a few
minutes, is that okay?', or the payments clerk can offer to call the person back when they have the
information that they need. Make sure that you know how to operate the telephone system properly so
that the caller is not accidentally cut or leave the line open so that the caller can hear their
conversation. When taking a caller off hold it is courteous to thank the caller for their patience.

When it is not appropriate to ring and speak with the person making the enquiry a payments
clerk can email, fax or send a letter to them in response. This is an effective strategy where a
more formal tone is needed and a degree of separation between the creditor and the finance
team is desired. It is also a useful strategy when dealing with companies operating in
different time zones, where it is important to have the response documented in writing, or
where a good rapport already exists between the creditor and the finance team.

When sending written communication to people outside the company a payments clerk must
ensure that they follow the protocols set down by their company. This can include but is not
limited to:
using company templates
using company letterhead
conforming to company writing standards such as using Australian English
having a supervisor check and approve correspondence

In most cases businesses have a 'pay on statement' policy. This means invoices, credit notes, and other
transactions are matched or reconciled with a statement issued by the creditor. If there are any
discrepancies they should be discussed before the payment date the supplier has set.
When any business establishes a credit facility (buys on credit, pays later) with a supplier they are
subject to terms and conditions imposed by a supplier. Usually the terms are for a month's supply to be
paid by a certain date in the subsequent month, or within a given number of days of the invoice being
issued.

For example, a Florist might establish a credit arrangement with their flower and gift supplier whereby
they can charge flowers and gifts to their account. The supplier might set the terms of the account so
that it is to be paid by the twentieth day of the next month. The Florist can then buy flowers and gifts
as they are needed, and pay according to terms of the account.

In this example, the Florist should keep all the invoices issued each time items are purchased. Early in
the next month the Florist will receive a statement from the supplier, listing the invoices for the
previous month and any other transactions eg payments and credits. The Florist should reconcile
(check) the invoices against the statement. If there are disputed transactions, such as missing invoices,
the supplier can be alerted and the dispute resolved. The reconciled invoices should be stapled to the
statement and payment details recorded on the statement for future reference.

Invoices for goods and services received:

Bendy Corner Service Station

Out and Back Street
Woolbum
ph 97773672
ABN 98 889 044 333
Tax Invoice 3987
Supplied to:
LunaticLinehaul
Mortuary St
Ridgeway WA 5096
17 Feb 20XX

Product I Description I Line Total

ULP95 Unleaded 55.50
25 fuel
Two-stroke oil 23.00
Total 78.50

Invoice includes GST of 7.13

Bendy Corner Service Station

Out and Back Street
Woolbum
ph 97773672
ABN 98 889 044 333
Tax Invoice 4109
Supplied to:
LunaticLinehaul
Mortuary St
Ridgeway WA 5096
21 Feb 20XX
Product I Description I Line Total
ULP95 Unleaded fuel 33.90
25 Two-stroke oil 11.50
Total 45.40

Invoice includes GST of 4.12

 Bendy Corner Service Station
Out and Back Street
Woolbum
ph 97773672
ABN 98 889 044 333
Tax Invoice Number 4139
Supplied to:
LunaticLinehaul
Mortuary St
Ridgeway WA 5096
24 Feb 20XX
Product I Description I Line Total
ULP95 Unleaded fuel 33.90
25 Two-stroke oil 11.50
Total 45.40

Invoice includes GST of 4.12

Bendy Corner Service Station

Out and Back Street
Woolbum
ph 97773672
ABN 98 889 044 333
Tax Invoice 4907
Supplied to:
LunaticLinehaul
Mortuary St
Ridgeway WA 5096
27 Feb 20XX
Product I Description I Line Total
ULP95 Unleaded 47.50
25 fuel
Two-stroke oil 33.50
Total 80.00

Invoice includes GST of 8.00

Supplier statements
Bendy Corner Service Station
Out and Back Street
Woolbum
ph 97773672
ABN 98 889 044 333
Supplied to:
LunaticLinehaul Period ended: 28 Feb
XX
Mortuary St
Ridgeway WA 5096
Feb XX Invoices Payments Balance
invoice
1 Feb XX Opening Balance 253.20
4 Feb XX Payment received 253.20 0 0
17 Feb XX Fuel and oil 60.00 60.00 .6
3987
14 Feb XX 4109 Fuel and oil 78.50 138.50 0
1
20 Feb XX 4139 Fuel and oil 45.40 183.90 3
1
28 Feb XX 4907 Fuel, Oil and Service 217.10 400.00 8
4
0
Current 30 days 6
401.00 0.00 0
0
 Now complete the learning task below. (called task 10 in the
activities tab)

Suggest an appropriate response to each of the following creditor enquiries:

1. A creditor rings to tell you that an invoice that was sent in over a month ago, with strictly 14 days
payment terms, has not yet been paid. Upon investigating you find that this had been an oversight on
the part of your company.
. __________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
2. A creditor sends an email to you stating that an invoice is now 30 days overdue. You check your system
but have no record of receiving the invoice.
. __________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
3. A creditor sends a formal letter claiming that although an invoice has been paid, the amount paid
is incorrect and that your company should have paid a greater amount. When you check your
records the amount paid correlates to the amount stated on the invoice.
. __________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.
__________________________________________________________________________________.