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• # 98972
• Thu 10 Apr 2014 11:22 AM

Hi

I would be grateful if someone could help me with a situation I am not familiar with. 

My client has a supplier who's invoices sometimes don't match the amount of money which they take from her account.  The amount in which my client is actually charged for their purchases for is over or under by a few pence, normally 10p, 1p or 6p and differs from the invoice by these amounts. 

My client uses this supplier regularly and always uses a debit card to pay the invoice.  My client contacted the supplier and was told that it was a card payment charge.  But how can this be a card payment charge if the amounts differ by a few pennies or sometimes the payments taken are exactly the correct amount and my client always uses the same card to pay. 

I have set up an 'invoice discrepancy account' to balance this until it is sorted but I am a bit confused.  If my client gives me permission can I contact the supplier on her behalf to try and sort this?, the supplier is based in the UK so it can't be an exchange rate difference. Could it be that they are not consistant with working out their VAT?

Please Help!

• Wendy

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• # 98985
• Thu 10 Apr 2014 02:17 PM

Hi,

I have a client supplier like this - wouldn't happen to be P&H Snackdirect would it?

It usually is to do with the vat - the supplier makes up invoice at the time of delivery and when it is processed properly at their accounts office then a few pence difference occurs. I just change the invoice amount if it is under 5p either way (over/under).

Having said that I have the supplier statement which shows the amount taken for payment so have this as proof should there be any enquiry.

You could contact supplier to get explanation but is it worth the effort for a few pence?

Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 98987
• Thu 10 Apr 2014 02:36 PM

Thank you for your reply MM Bookkeeping. 

No its not P&H SnackDirect its a company called Coralgraph Ltd.  I don't think my client gets a statement as it is usually immediate payment by card, but I will ask, maybe the is a delivery note which will show the updated amount but I don't normally get to see these.

I don't really want to be changing the amounts on the actual invoice, so I hope it is ok to just have an 'Invoice discrepancy ledger account' for when this happens, so that the books at least balance, but I'm not sure if it is ok to do this.

• Wendy

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• # 98990
• Thu 10 Apr 2014 03:33 PM

I have looked back over previous invoices for this supplier and I think I have realised what they are doing.

It seems like they are rounding down vat on individual items when they first invoice, then when they take payment they are rounding up vat on the cost as a whole. 

I thought companies had to round up or down consistently throughout, this just messes up the accounts from a bookeepers point of view, can anything be done about this?

And although it is only a few pence here and there for my client, if the supplier does this to all of their clients then the supplier is potentially submitting an incorrect vat return as all of those pennies mount up, or am I just looking too much into it?

• Wendy

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• # 98993
• Thu 10 Apr 2014 05:26 PM

Hi,

Where are you going to post the 'invoice discrepency ledger amount' at year-end?

Seems a lot of work when all you have to do is amend the net figure of the invoice with the few pence so it agrees with payment made. After all it is the total paid for stock purchases at the end of the day and is not any other type of expense.

How the supplier deals with his Vat is not really your concern as long as you just claim the vat shown on your client's invoices.

Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 99011
• Fri 11 Apr 2014 09:56 AM

Marilyn

It makes much more sense now, I didn't think about how it would affect end or year postings. What you are saying makes perfect sense. I guess I was just worried about not having proof of the changed amount because my client doesn't get a statement or updated invoice, so all I have is the suppliers name on the bank statement.

You know when you over think something for too long and then nothing about it makes sense, that is what I've done here, feeling silly

Thank you so much for your help!

• Wendy

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• # 99017
• Fri 11 Apr 2014 10:28 AM

Hi,

Don't feel silly - we have all been there! Still am at times!

Yes, over thinking something makes the brain go runabout.

Have a good weekend.

Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 99018
• Fri 11 Apr 2014 10:49 AM

I have been following this thread with interest as sometimes this happens to me a work - usually on an internet purchase, but didnt want to imput incase what I was doing was wrong !!! as it happens I amend my figures to match the payment.

Amazing what you can learn here

Lisa

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• # 99026
• Fri 11 Apr 2014 12:58 PM

Hi Lisa

Its nice to hear from other people who have come across similar problems during their work.  It can be so daunting when you come across something new and then panic incase you're not doing the right thing. 

I am so glad there is somewhere you can go for support!

• Wendy

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• # 99028
• Fri 11 Apr 2014 01:24 PM

Hi Foxy

I agree not only is this forum a great source for learning but also a wonderful confidence booster when morale is low as I have learnt this week for myself.  As I am still employed rather than having the leap of faith to get my licence and my own customers I dont encounter many strange and wonderfuls so cant always contribute but they are being stored away for the day

Lisa

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