Got a Purchase Order for 2 years do I bill it all now? [Archive]

commadus

27th November 2009, 12:29

We agreed some work for 2 years - 40k per year but with a break clause after year1 1.

I thought they would send us a £40k PO for the first year and then another one next year but they have sent us a £80k PO covering both years.

I asked them and they said that's ok I should just bill them.

MH1

27th November 2009, 17:28

I asked them and they said that's ok I should just bill them.

So your problem is?

An Oasis

27th November 2009, 17:42

So your problem is?

Which car to buy! Second hand or go for...

sirearl

27th November 2009, 17:42

Tough decision.:eek::D:D

Earl

Tej

27th November 2009, 20:54

We agreed some work for 2 years - 40k per year but with a break clause after year1 1.

I thought they would send us a £40k PO for the first year and then another one next year but they have sent us a £80k PO covering both years.

I asked them and they said that's ok I should just bill them.

Well.. just bill them as the man said...

then wait for 2 years to get paid:)

saxondale

27th November 2009, 21:21

put 40K in a bank account and don`t touch it - just in case.

Spongebob

28th November 2009, 06:33

Are you VAT registered?

If so there would be a definite cash-flow advantage in invoicing as you go along - quarterly or even monthly.

I don't suppose for a minute that they are going to pay you up front in full for 2 years work, so I would tailor the invoicing to the anticipated payment schedule.

JEREMY HAWKE

28th November 2009, 08:07

We have a five year contract with one of the water companies with a purchase order no for all the work.Its not a case of billing all the work in one go and getting a big lump sum .You bill weekly or monthly for work done .It really is not wise to bill for work that has not been done or not being done within the next seven days !