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  1. #1
    Join Date
    May 2002
    Posts
    1

    Billing questions!

    I have got an interesting issue here. If you are a dedicate provider. For some reason, you did not billing your clients overaged bandwidth 6 months ago. Would you go ahead and collect those overaged bandwidth charge now?

  2. #2
    Greetings:

    Yes. Because the service was provided and received.

    It does indicate a billing situation that needs to be resolved so that it does not happen again.

    (On a side, but related note, in March we received an invoice form our lawyers for work done in October 2001. You bet we have to pay it whether we like they they mailed that invoice so late; and they were mailing other invoices on time).

    However, look at it this way.

    How many times have you read about government or other mistakes where some one received a check ($) they should not have received? And the goverment or other entity had the right to get the money back?

    Now, to be clear:

    The customer should communicate with the vendor or partner to ensure this would not happen again. The vendor or partner should make steps that it does not happen again.

    And depending on the amount of the invoice, both parties should agree to terms.

    Lastly, we are biased on this issue because we had an in-house accounting person who, prior to being caught and terminated, charged hundreds of dollars of candy to a staples credit card and paid for its deliver, received checks, and did not deposit them (we found a check a year old undeposited), and sporadically sent out invoices when it came to a half a dozen of our six hundred clients (usually it was disk overages and bandwidth that she conveniently forgot to invoice).

    From a legal and IRS perspective as well as an ethical perspective to our investors, we are obligated to invoice and to collect.

    The customers did receive and benefit from the service. So in essense they still owe the money.

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

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