"I have a client with numerous bills entered to Accounts Payable... "
I can't impress upon you enough, the importance of your situation here. I have faced this and similar "disputes" and here is how, as a professional - classified as such, MUST handle yourself here.
-First off, is how you're viewed by others, in addition to your client. You bring a professional criteria to the table that states, and is assumed, to be worthy of judgements and conditions as dictated by your profession.
-Second, as you present activity in the accounts, these activities have a certain worth, not only in dollars and cents, but also in the reasonableness that you share with regards to judgement. Creditors, banks, financial institutions, local/state/federal authorities depend on your judgement heavily.
-Third, certain industries have practices that considered Industry Standards, on top of GAAP.
- Forth, every transaction has an audit trail with established protocols, regardless of how minor that transaction may seem.
Here's how I handled similar situations:
Ask your client to itemize the dates of original billing. Detail the billing with any and all documentation, such as receivers, bills of lading, charge back documentation, letters of dispute - how/when/why, documented statements in writing/phone conversations, and such.
For service fees such as restocking, late fees, OS&D (over, short, and damaged) inside delivery fees, penalties, conflicts of statements and such, be very, very specific in writing - SIGNED OFF BY YOUR CLIENT.
Under no circumstances get involved with contacting the disputed parties yourself. That will only involve you in an endless chain of "he-said-she-said." Your client is responsible for all substance, facts, claims, verbal and written conflicts. You are not providing a certified financial statement and a qualified opinion of financial condition , right?
You're only showing due diligence in the reporting process by client provided written statements.
Now here's were the rub comes in : if your client directs you to write these accounts off, or even demands that these accounts be removed from the books, your professional diligence may have you thinking twice about this client base relationship. That's something that you'll have to come to grips with, beyond this posting.
