SWAP PAYMENTS GUIDE FOR ACCOUNTS

We don’t do contra payments

We do  swap payments ,there are 4 steps

1.we agree how much that we owe them for the period  - (we dont do payments until we agree on the amounts ) 

2.we agree how much they owe us for the same period -(we dont do payments until we agree on the amounts ) 

3.we advise customer we are going to pay on the nearest Weekly payday

4. we make the payment on that day 

5.We confirm our customer has made payment to us on that day .

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when we receive notification from accounts payable that we are ready to pay suppliers and these same suppliers owe us $$ for the same period , then accounts payable will advise accounts receivable  that we need to "swap chqs " 

accounts payable will note any current open tickets for collection from this suppliers/customers and we use the leverage of he money that we are going to pay them as a tool to assist in accounts collection 

its important to search and be aware of any current accounts collection tickets just so we dont get mixed up 

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FAQ 

What if the other company didnt meet their end of the bargain and pay us on that day ? 

if this was a one off minor error ,then its ok , if not we make note on this account and dont do that again the in future 

For suppliers whom we aren't paying until they pay us 

we mark the planned date of payment as the first Sunday of that month until we agree on amounts we owe each other and we agree to a planned date 

i.e if we are ready to pay supplier but we wont pay until we have agreed to date ( i.e got commitment from them ) then we move the day of payment to the agreed date and advise payment person that this date has been agreed to .

For COD suppliers who will drop cheques

ask when they are planning to drop in cheque and we will make bank transfer around that day