Calc Invoices to Pay?

[Mike Schwartz]

> 
> I don't think that's possible to do with 100% accuracy.  If there were
> two
> invoices for the same amount, or if there were multiple permutations of
> invoices that were in different amounts but come to the same sum,
> you're
> really faced with a user-level decision that no program should be
> making
> with something as important as AR that can affect the credit ratings of
> customers.
> 
> If you're still determined to go ahead with a bad plan like this,
 
> mark->

     I second that. I ran more than one case where this ended up in a big,
expensive legal mess.  For example, I had one client, "Smith" who's main
customer was "Brown".   Brown would send Smith checks that had an amount
that didn't jive with the invoice numbers listed.  Smith's accounts
receivable girl would go crazy trying to apply the checks.  Sometimes, Brown
would send checks for "even" amounts, like $10,000.00, and then tell my
client to "apply it to the oldest invoices." After several years, Smith was
short almost $100,000.00, even though their Brown kept insisting that their
computer system showed everything was paid up.  Brown eventually sold out
their business as an "asset purchase" to a larger company, then Brown
disappeared, leaving Smith $100,000.00 poorer.  (Ironically, in the court
case, which Smith lost, the people who bought out Brown mentioned that they
did so because Brown's business appeared much more profitable than similar
businesses...)

     And, this wasn't an isolated case.  More than one of my veterinarian
customers got burned by the mega-sized cattle and pig feeding operations by
this "asynchronous payment" of invoices. 

     So, if you ever hear of a case like this, make SURE your accounts
payable people get on the phone RIGHT AWAY and get the money applied to the
correct invoices and then follow up with a CONSTANT BARRAGE of statements
and payment history going to the customer with LOTS OF detail, showing
exactly what has been paid and what has not.     

Mike Schwartz