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There are often bank charges which reduce the ar, my question is why should bank charges be bourne by the receiving company and not the vendor ?

For example there was a invoice for $100 and Vendor Paid $100 however when the money came in Bank it was $95 as the bank deducted the transaction charge of $5 (Who should bourne this bank charges ?

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Question added by praveen gadhvi , Assistant Manager , deloitte
Date Posted: 2013/10/17
Jobel Bacerdo
by Jobel Bacerdo , General Accountant , SAFAMI ( Saudi Arabian Metal Fabrication Industry Co. Ltd )

Bank Charges are not reducing the AR.. It actually reduces the collection because the part of your collection will go to expense. And for who will pay for the charges, it must be specified in the contract or PO.

Akhilesh Vashist
by Akhilesh Vashist , Principal Consultant , Individual

It depends on the contracted payment terms with the partner ...Usually since the service has been provided the bank charges for the same should be borne by the company...in fact the vendor would have provided the Bank details at the time of registration and the obligation of payment in that bank account to the agreed amount lies with the company.

Mohamed Adel
by Mohamed Adel , Senior Accountant , Al Khaila Investment Company

Because it's deducted against a service that made for you not for your customer, simply it's your company account

And you have to make the payment method easy, it's the competition

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