![]() ![]() Without cash application automation software, for example, the complexities of handling short paid invoices are a major source of headaches for accounting teams.Ī lot of manual effort would be required to follow up with customers to figure out why a short payment was made and track the follow-up process. This is especially problematic for invalid short pays, as those underpayments represent income that your business can legitimately claim.īut beyond the revenue impacts, short pays also present challenges when reconciling payments with open receivables. The most obvious business impact of short payments is the reduction in revenue these underpayments result in. The impact short paid invoices have on businesses Or they might do it because they simply want to pay less than required and hope you won’t notice or won’t follow up on the short paid invoice. ![]() ![]() A customer may make a short payment because they don’t have enough cash on hand to satisfy the full payment. Invalid reasons to short pay an invoice usually involve customers intentionally avoiding payment. Customers that aren’t using electronic payment management may simply write or key in the wrong amount, resulting in a short paid invoice.
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