An unexplained receipt can leave paid invoices on your overdue list. Match the payer and allocation before chasing the account or treating the difference as a discount.
Corporate Recovery Partners
01 / 06
A bank deposit does not explain the customer account
A payment lands in the business account with a short reference and no remittance. Two customers owe similar amounts. Meanwhile, an automatic reminder is ready to go out.
The money is real, but its allocation is unclear. Investigate the receipt before sending a demand that may include invoices already paid. Do not guess simply because one overdue balance looks close.
Record the amount, date and reference from the bank. Compare these with customer correspondence and expected payments. Where your bookkeeping system allows it, use an appropriate temporary allocation under your bookkeeper’s direction.
Keep the original bank reference. Replacing it with an assumed customer name can make the later check harder.
Contact the likely payer and ask which invoices the transfer covers. For example, a hypothetical $8,000 receipt could cover two $4,000 invoices, or part of a different account. The amount alone does not settle the question.
If the customer deducted a credit or disputed item, ask them to identify it. Recording their explanation does not mean agreeing that the deduction is valid.
business.gov.au recommends unique invoice numbers to help track payments and resolve queries. Include those identifiers in the allocation request and the confirmation you retain.
After the allocation is checked, update the customer account and any follow-up list used outside your accounting software. Otherwise, the office may keep chasing from an old spreadsheet.
If a reminder already went out incorrectly, send a brief correction. Explain the receipt now matched and the balance, if any, that remains under review.
A useful account summary shows invoices, agreed credits, receipts and the amount still outstanding. Each entry should lead back to a document.
If the customer and your records still disagree, resolve that difference before escalating collection. CRP can review the unpaid-account issue using a reconciled statement and the supporting correspondence.
