Writing Off Small Amounts

fozzeh

Quick question for any (private) bankers out there.

Is there any legislation which would allow a company to write off punitive amounts (<50p) on the basis of it being more efficient to the company (on the basis of man hours, postage, economy, etc)?

Reason is we sometimes get clients who are invoiced to £199.99 and send £200 and we can't do anything with it if they don't deal for a while. If there is something concrete, we want to try and get this into our T&C's possibly with the proceeds going to charity for anything which is outstanding for 10 or 20 business days.

Yes, you may say "Well it is there money" but we reserve the right to charge for postage (which is currently free) so that can be countered.

If not the right area, mod's feel free to move.

Ta.

jonesMUFCforever

Why not let the sum accrue in their individual accounts in your records - it will not cost you anything.

Otherwise reject the payments and ask for the proper ones?

fozzeh

A) You can't hold money in someone’s name with their authorisation as these are clients without authorised cash accounts. It's against client money regulation (which is in the FSA handbook). For anyone who doesn’t have this agreement, we can either remove that marker (which means it going against rules) or it comes on a daily report and I have to knock it back, costing time and therefore wages.


Ideal but not practical. The cost of doing that would outweigh the above anyway so renders it a useless process. Plus the client would just moan anyway (well, most of our client base would).

jonesMUFCforever

Life's a !!!!!! then isn't it.