Plan for Identification of the Primary Causes of Failure to Pay
To address the issue of failure to pay invoices within the specified timeframes, the following plan will be implemented:
- Analyse the current supply chain processes and systems to identify potential bottlenecks and inefficiencies.
- Review historical data on payment delays and identify patterns or common factors contributing to the delays.
- Evaluate the effectiveness of existing payment monitoring and reminder systems and identify any necessary improvements or enhancements.
- Conduct a comprehensive review of contract terms and conditions to ensure clarity and alignment with payment expectations.
- Implement robust tracking and reporting mechanisms to monitor payment performance and identify deviations from agreed-upon terms.
- Establish clear escalation procedures and protocols for addressing payment delays and resolving disputes promptly.
- Regularly review and update the plan based on feedback and insights from ongoing monitoring and evaluation.
The plan will also include a commitment to regular reporting on progress ensuring that stakeholders are kept informed about the organisation's efforts to address payment delays.
Procedures for Resolving Disputed Invoices using Xero
- Gather Information: Collect all relevant information related to the disputed invoice, including the invoice number, date, and any supporting documents or communication.
- Review Invoice Details: Use Xero to access the disputed invoice and review its details, such as the items/services provided, quantities, and amounts.
- Contact the Customer: Reach out to the customer via email or phone to discuss the disputed invoice. Clearly explain the issue and ask for their input or clarification.
- Provide Supporting Documentation: If needed, provide any supporting documentation or evidence to the customer that can help resolve the dispute. This may include delivery receipts, contract terms, or project timelines.
- Document Communication: Keep a record of all communication with the customer regarding the disputed invoice within Xero. This will help track the progress of the dispute resolution process.
- Negotiate and Reach Agreement: Work with the customer to negotiate a resolution. This may involve adjusting the invoice, providing a discount, or finding a mutually acceptable solution.
- Update Invoice in Xero: Once an agreement has been reached, update the disputed invoice in Xero accordingly. Make any necessary adjustments to the invoice amount or terms.
- Communicate Resolution: Inform the customer about the agreed-upon resolution and any changes made to the invoice. Ensure both parties are clear on the final resolution and any next steps.
- Monitor Payment Status: Keep track of the payment status of the resolved invoice in Xero. Follow up with the customer if payment is not received within the agreed-upon timeframe.
- Document Resolution: Document the resolution of the disputed invoice within Xero, including any adjustments made and the outcome. This will serve as a reference for future reference or audits.