Show whether a payment cleared before or after the statutory demand

A payment appears to be missing from the demand

The statutory demand includes an invoice you believe was paid. Give the complete papers and bank evidence to a lawyer urgently. The actual timing and allocation need checking, and the effect on the demand requires legal advice. Do not put it aside simply because your accounting screen shows a payment against the account.

Separate instruction from completed transfer

Imagine a company scheduling a payment shortly before the demand arrives. Preserve the payment instruction, bank transaction and any confirmation that funds cleared. A scheduled transfer, an unsuccessful payment and a completed receipt are different events. Record what the evidence actually establishes rather than describing all three as the date the debt was paid.

Match the receipt to the invoice

business.gov.au recommends tracking invoices and payments. Keep the remittance advice and allocation records with the relevant invoice. If a single transfer covered several items, explain the split. Do not assume that a payment to another account or entity reduced the particular amount demanded without giving the adviser the complete facts and supporting documents.

Source: business.gov.au: How to invoice

Build a precise chronology

In the example, record the demand's dates and delivery evidence beside the payment sequence. Preserve any acknowledgement from the creditor and flag uncertainty. Do not invent a date to close a gap or use the accounting posting date as a substitute for the underlying bank event. The adviser needs to assess the real timing, including any relevant subsequent communication.

Keep the legal response moving

Ask the lawyer what the payment evidence means for the amount and available response, and what steps must occur by when. A request for a corrected statement should not be treated as suspending the demand process. Do not assume that the creditor's acknowledgement of a receipt automatically withdraws the demand or resolves every amount included in it.

Provide one reconciled file

Send the original demand, invoice, payment evidence and chronology together, retaining a copy of the actual material supplied. Update the adviser if further information arrives. A clear payment sequence helps identify the true discrepancy without turning an accounting observation into an unsupported conclusion that no formal action is required.