Accounts Receivable Dispute Resolution
Accounts receivable dispute resolution is the process of resolving disputes between a company and its customers regarding unpaid invoices. This process typically involves the company and customer negotiating a resolution that is mutually beneficial. The goal of accounts receivable dispute resolution is to ensure that the customer pays the invoice in full and that the company is able to collect the money it is owed.
For example, a company may have an invoice for $1,000 that is past due. The customer may dispute the invoice, claiming that the goods or services were not delivered as promised. The company and customer can then enter into a dispute resolution process to negotiate a resolution. This could involve the customer agreeing to pay a reduced amount, or the company agreeing to provide additional goods or services to make up for the discrepancy.
Why it Matters
Accounts receivable dispute resolution is an important process for companies to manage. It helps to ensure that customers pay their invoices in full and on time, which is essential for the company�s financial health. Additionally, it helps to maintain good relationships with customers, as it allows the company to resolve disputes in a timely and amicable manner. Finally, it helps to reduce the risk of bad debt, as it allows the company to negotiate a resolution that is beneficial to both parties.