Payment - meaning of the term 'to date'

[steve23]

Hi all,

I did some work for someone and the contract i agreed to went something like this...

"Invoice to be submitted at the end of the month for all work to date to be paid on the 7th of the following month"

Now, my understanding of this, and the company who i did the work for sees it this way, is that I do some work for them in say, January, and I invoice them for that work on the 31st Jan. They then pay me for that invoice on the 7th of Feb.

At the end of Feb, I give them another invoice for all work in Feb, and they pay me on the 7th March - and so on.

But a collegue of mine is kicking up a stink because, although the invoice he submitted only covered the month of work, he believes he should be paid for all work carried out until the 7th, saying that that is what the term 'to date' implies.

He wants me to back his complaint, and although i have no intention of doing so, just interested to see if he has any valid point.

All the best

Steve

 

[chasingunicorns]

I'm with you here. If you submit an invoice dated 31st Jan (say) for the work done up to that date, then that is what you are paid for. Your client is taking the option of paying you seven days from the date of your invoice - pretty normal practice. If your colleague thinks you should be paid for work throughout those seven days, how can he possibly accurately predict what has been completed - unless he can see into the future. Sorry, I'm not a legal person but run a small business and have a similar customer with similar trading terms.

 

[McKenna Hughes]

I agree with your interpretation also. You should be invoicing for the period up to the date of the invoice not beyond that date.

 

[jules12345]

Hi all,

I did some work for someone and the contract i agreed to went something like this...

"Invoice to be submitted at the end of the month for all work to date to be paid on the 7th of the following month"

Now, my understanding of this, and the company who i did the work for sees it this way, is that I do some work for them in say, January, and I invoice them for that work on the 31st Jan. They then pay me for that invoice on the 7th of Feb.

At the end of Feb, I give them another invoice for all work in Feb, and they pay me on the 7th March - and so on.

But a collegue of mine is kicking up a stink because, although the invoice he submitted only covered the month of work, he believes he should be paid for all work carried out until the 7th, saying that that is what the term 'to date' implies.

He wants me to back his complaint, and although i have no intention of doing so, just interested to see if he has any valid point.

All the best

Steve

Its quite clear - 1st Jan to 31st Jan to be invoiced 31st Jan and paid on the 7th Feb.

 

[thecyclingartist]

With you. How could they pay him up to the 7th for work not yet done at the time of an invoice of work submitted the 30/31st of the previous month? Makes no sense. "to date" is to date of the invoice, ie. the end of the month.

Tina.

 

[Geoff T]

I'm with everyone else here... you can't advance bill for work when the hours, details etc are unknown...

In my profession, getting paid in 7 days is DAMN good going - tell your colleague from me that a max debtor day of 37 is - these days - not worth throwing the toys out of the pram (especially when they're in the wrong...)

 

[obscure]

Agree with all the above. The invoice is issued on 31st for work done "to (that) date". The 7th of Feb is after that date so work done between 31st and 7th can't be included on that invoice.

 

[Miles Shelbourne]

The point at which the invoice is issued is the point in time where you know the work done and for which you are invoicing. The seven days is allowed for time to pass the invoice to the debtor/customer, for them to presumably post it onto their system, and to raise a cheque/arrange BACS payment etc. Very straightforward, and any work carried out during that seven days is picked up in the invoice at the end of that month...

 

[OldWelshGuy]

The 'to date' refers to the date of the document. So you are right and he is wrong

 

[Miles Shelbourne]

Yes, of course, OWG. I was simply explaining to anyone who wants to see it, the typical reason why there is a seven day reference...

 

[OldWelshGuy]

Yes, of course, OWG. I was simply explaining to anyone who wants to see it, the typical reason why there is a seven day reference...

Apologies if you thought I was replying to youself, I was just replying to the original question