Accounting People - Help - Invoicing prior to shipping / picked up

[frekeyguy]

Hope you business people and accounting people can help out with this one.


My understanding was that, a business cannot invoice a customer that has terms (net30, 60 etc) unless their product is picked up or shipped out.


For example: Product ready at XYZ IND. on March 3rd, my driver does not pick up good until March 20th. This should be invoiced on March 20th correct?


--> I need some sort of document to show, product should not be invoiced unless it has been picked up.

 

[rbjeepthing]

Depends on the agreement you have with the company. I know if we have it in-stock then we wait to bill it out till pickup or it's shipped. If it's a special order item then we tell the customer we are billing it out ahead of time.

 

[LiNK666]

I usually send out invoices ahead of time with the terms written on it such as delivery date, billing date and terms agreed upon.

It's the kind of thing you should ask an accountant. If you can't find an answer PM me, I'll my CA.

 

[Scuba Steve]

It will be billed when it is ready for pick up. It is your responsibility to get it picked up once it is ready.

Sent from my Nexus 4 using Tapatalk

 

[frekeyguy]

It will be billed when it is ready for pick up. It is your responsibility to get it picked up once it is ready.

Sent from my Nexus 4 using Tapatalk

Thanks! That's what I was looking for.

If they have notfied that parts are ready to be picked up - they can invoice the same day?

 

[Brian P]

If there are terms, then there is a contract (purchase order, etc) and that should state this.

I know that my company sends the invoice when the product ships.

 

[Scuba Steve]

Thanks! That's what I was looking for.

If they have notfied that parts are ready to be picked up - they can invoice the same day?

We bill the day the item ships if we are shipping it, or the day it was ready for pickup if the customer is picking up.

 

[crankcall]

Totally depends on the terms of your "terms" , most of the companies I deal with invoice when shipped, a couple invoice when its ready to be picked up, one invoices 50% before it goes into production, balance invoiced on shipping. It all has to be negotiated when opening the acct. . Where it gets ugly is I can have product invoiced when it leaves the mill (Russia) and it in a sea-tainer, I will have paid for it 2 months before I see it. I can get invoiced by the shipping dept in Oregon for a rail car that didn't leave their siding for 15days, but it was "shipped", since it left their building. When they can invoice is up to how you arranged it. I invoice when the order leaves my freight yard, most f'ers take 1%/N30 to mean 60 anyways......