Delta Computers Ltd.

Bradfield Estate, Bradfield Road, Wellingborough, Northamptonshire NN8 4HB

Telephone: 0933 16431/2/3/4 Reg. England 1831713

Telex: 485881 VAT 2419 62114

Fax: 0933 20016 Your Ref:

Our Ref: TYGA/C

P. Theopolis SA 9 December 20—

561 3rd September Street

GR-10432

Athens

Dear Mr Theopolis,

Account No, TYG 99014

I wrote to you on two occasions, 21 October and 14 November, concerning the above account which now has an outstanding balance of £ 1 ,54 1 .46 and is made up of the copy invoices enclosed.

I have waited three months for either a reply to explain why the balance has not been cleared, or a remittance, but have received neither.

Although I am reluctant to take legal action to recover the amount, you leave me no alternative. Therefore, unless I receive your remittance within the next ten days, my solicitors will be instructed to start proceedings to recover the debt.

Yours sincerely,

J. Millar (Mrs) Accountant

Encl. invoice copies

6.6.9

Third request (Final Demand)

Questions

1. How many times has Delta written to Mr Theopolis?

2. How long has the balance remained unpaid?

3. Do Delta want to take any action?

4. What expression is used which means the same as 'legal action'?

5. What was included with the letter?

6.7

Points to remember

Invoices record goods that have been sold. The commercial invoice is one of the main documents used in trading. It maybe accompanied by a short covering letter.

2. Pro-forma invoices are sent in the case of pre-payment, or to inform the customer of the price.

3. Statements of account are sent monthly or sometimes quarterly, and include details of all transactions within the period.

4. There are various methods of payment available through the Post Office and banks. Letters accompanying payments are usually short, giving information about the payment and what it refers to, but they can also be used to make further comments if necessary.

5. Letters advising and acknowledging payment tend to be short and routine, but they may be used to, say, propose new terms of payment or to make complaints.

6. If you are asking for more time to pay, you should apologize for not having cleared the account on the due date, explain why you have not paid, and when and how you intend to clear the balance. Remember, your creditor is more interested in when he gets his money, than good excuses.

7. As a supplier, three steps are usually taken to recover a debt. The first is to write a polite letter which allows for the fact that there may be a good reason why the account has not yet been cleared. The second is to send a more insistent request which refers to the letter you have already sent with enclosures of copies of invoices and statements. You can, in the second request, state that you expect payment, or a reply, within a reasonable time. A final demand must be handled with restraint. Review what has happened, explain the balance has been outstanding for a long period, and if necessary threaten legal action if the account is not paid within a specified period.

6.8

Words to remember

an invoice

a remittance

a pro-forma

a statement of account

a credit/debit note

a balance

a refund

open account facility

Account Rendered

due date

prompt payment

to clear/settle an account

overdue account

to extend credit

a first/second/third request

a final demand

to recover a debt

carriage forward

trade discount

cash discount

goods on approval/sale or return

a postal order

a Giro

COD (cash on delivery)

a cheque

a current account

a savings account

a bank transfer

a telegraphic transfer (TT)

a mail transfer (MT)

a bank draft

a sight draft

a bill of exchange

a letter of credit

a money order

a promissory note

documentary credit

Value Added Tax (VAT)

postage and packing (p&p)

errors and omissions are excepted

(E&OE)

The Society for Worldwide Interbank

Financial Telecommunications

(SWIFT)

7 Complaints and adjustments

Unjustified complaints; writing general complaints (the language of complaints, explaining the problem, suggesting a solution); replying to letters of complaint (getting time to investigate, explaining the mistake, solving the problem, rejecting a complaint); accounting errors and adjustments (debit notes, credit notes).

7.1

Date: 2016-01-03; view: 958