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In credit management, never underestimate the need for proper documentation. This is especially so when we are thinking of suing delinquent debtors. Without proper documentation, all is practically lost.

It’s important to bear in mind the following points:

1. the name of the customer on the invoice or delivery order must be exactly the same as in the approved Application of New Accounts,
2. the receipt or acknowledgement of goods must be provided by the party invoiced unless authorised otherwise by the party invoiced. It is crucial that we get written confirmation or authorisation for delivery to the third party, or it could end up very messy to prove,
3. the acknowledgement must also bear the rubber stamp of the company,
4. a copy of all invoices and delivery orders with acknowledgement by the customer must be filed systematically in the office for verification. In practical situations, the transporter of the company usually collects the acknowledgement from the customer. It’s therefore important to ensure this is filed,
5. always remember that the chop “overdue interest at XX% payable…” should be chopped on the delivery order as the proper “claim for damage” is when we forsake our goods for future payment.

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