One of my client's supplier has gone in administration. The supplier has already invoiced my client with work that has not been finished. As my client was doing a big project he had to finish the job so he sub-contracted other suppliers to finish the un-finished work for which he had to pay of course.
My client received a letter from the appointed administrators with the outstanding amount to pay. He took a copy of all the invoices he had to pay to the other suppliers for the un-finished work, deducted these invoices from the outstanding amount to the supplier gone into administration and sent a cheque for the difference.
All this makes sense to me to a point. The cheque sent out to administrators is half of the total invoice outstanding to them ( supplier ) so I will have half of this invoice outstanding in their account. Not sure how to deal with this.
Would it be right to ask for a credit note from them? But being in administration will I ever see a credit note from them?
Or how could I offset the other suppliers invoices against the outstanding amount?These invoices have already been paid about a month ago.
Sorry but I'm really scratching my head on this one.
Any suggestions would be very helpful. Many thanks.
