Business to Business- deductions from invoices

[bigsidrocks]

Oklahoma
Can someone tell me or point me in the right direction on where to find the legal boundaries on which a customer can deduct from an invoice?? I have several customers that have outside auditors go back 3 years and deduct for various issues which are invalid. They are obviously invalid, but they are just betting that, as a large company, we will just write them off. Isn't the burden of proof on the customer to prove it, since they are the ones deducting from the invoice??

Many thanks,
Mike

 

[JETX]

Your customers have no right to 'self-help' by deducting from a valid invoice without your authorization.

Simply hold any unpaid amount as arrearage and re-invoice them for it. If they refuse to pay the (improperly) deducted amount, put them on a COD basis and consider taking legal action to recover the unpaid amounts.

 

[gobonas99]

"They are obviously invalid, but they are just betting that, as a large company, we will just write them off."

Granted, the customer should have contacted someone in your A/R department about the charges before they deducted them. BUT, if the charges are INVALID why in the world would they pay them - and why would you expect them to? If I get a bill for something that I never received or that is incorrect, I will be on the phone asking about it, and I sure the heck won't pay it! AND if the charges that they are deducting ARE INVALID, why would your company NOT write them off?