A partly disputed invoice should remain traceable in the customer ledger, with the queried amount and undisputed balance identified separately. Preserve the original invoice and the customer’s explanation. Do not delete the full sale or silently reduce the debt merely because one line is being challenged.
Define the disputed item
Record the invoice number, customer, original amount and specific line or service being queried. Ask the person managing the customer relationship to document the reason and supporting correspondence. A general note saying customer unhappy is not enough for the bookkeeper to understand the balance.
Separate the operational discussion from the accounting decision. The sales team may be investigating a delivery issue while finance still needs to explain the recorded receivable. Keep those responsibilities visible rather than allowing an informal promise to change the ledger automatically.
Match partial receipts carefully
Allocate any payment to the correct customer and invoice. Record whether the customer specified that it settles only the undisputed part. Retain the remittance advice. Do not mark the whole invoice paid because the receipt matches a figure mentioned in an email.
Example: one service line is challenged
An invoice covers three service items. The customer accepts two and disputes the third. Finance should show the amount received, the balance outstanding and the status of the queried item. The original invoice remains available to explain how the balance arose.
Require approval for an adjustment
If the company agrees a reduction, obtain the appropriate approval and supporting document, such as a credit note where required. Ask the accountant about accounting and GST consequences. A dispute, a price concession and a bad debt are different events; do not give them the same posting without review.
Review ageing and retain the trail
Include the outstanding amount in the receivables review and identify who follows up. Where recoverability is uncertain, obtain the accountant’s assessment rather than relying only on the age of the invoice. Keep the invoice, dispute correspondence, receipts and approved resolution together. IRAS recordkeeping guidance supports retaining records that explain business transactions.
Related practical guidance
For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.
Official guidance: IRAS official guidance.
Help with your company records
For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.
Leave A Comment