The Payment Dance

   
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Introduction

When I do presentations it's necessary that I get paid via my limited company. You can read a little about that via the link at the bottom of the page.

In general, and for most people, the process goes like this:

The simple process

  • I get an email asking for a talk, workshop, or other presentation

  • I send back a general email accepting the invitation (in principle), and asking for more details about the time, place, and audience.

  • We agree about the:

    • time, place,
    • audience,
    • rough logistics, and
    • compensation.

  • I give the talk (or whatever) and issue an invoice with details of what I did, how much we agree, and where to send the payment

  • Money turns up in the right place.

Sometimes, however, it's not as easy as that, and there are more steps than you might think. Here is a more complete set of steps:

  • Potential host requests a talk (or product or service)

  • We negotiate Recompense (and other details)

  • The host requests payment from the holder of funds

  • The holder of funds requires Solipsys Limited to be added as an approved supplier and requests company and financial details.

  • Solipsys Limited provides the necessary details, most often via a PRO-FORMA invoice.

  • The holder of funds adds Solipsys Limited as an approved supplier.

  • The holder of funds generates a purchase order, which will contain a unique purchase order number to allow the purchase order to be traced.

  • Solipsys Limited presents an invoice quoting the purchase order number

  • Money gets transferred from the holder of funds to Solipsys Limited.

That seems complicated, but in a sense it isn't. At right I've listed the process in reverse order, along with (admittedly simplistic) reasons why it's actually quite sensible.

The more complete version ...

I'll work through these in reverse order.

It culminates with payment:

  • Money gets transferred from the holder of funds to Solipsys Limited.

    • This, of course, is the aim of the dance, so needs no further explanation. However, the payer needs to know how much, and where to send the money. That is provided by ...

  • Solipsys Limited presents an invoice quoting the purchase order number

    • The invoice contains all the details of the service that has been rendered or the product supplied, and how to pay. The PO number has to be quoted to allow the payer to match the invoice to the purchase order and confirm that the product or service has in fact been ordered, and that what has been supplied matches what was requested. To do that ...

  • The holder of funds generates a purchase order, which will contain a unique purchase order number to allow the purchase order to be traced.

    • This defines the service or product to be provided, and the purchase order number allows the purchaser to track the paperwork. The payer needs confidence that this is genuine, and hence compares against a list of known approved suppliers.

  • The holder of funds adds Solipsys Limited as an approved supplier.

    • This requires details to be added to the system.

  • Solipsys Limited provides the necessary details.

    • This includes company number, address, contact details, account details, and VAT number (if VAT registered);
    • These are provided on a PRO-FORMA invoice.

  • The holder of funds requires Solipsys Limited to be added as an approved supplier and requests company and financial details.

    • It's important that large organisations check that suppliers aren't just someone's cousin, and that they are a legitimate organisation, and that they have approved payment details on record. Of course, this is only because the payer knows that there is something to purchase, which is in response to ...

  • The host requests payment from the holder of funds

    • Sometimes the person or organisation requesting the service or product is not the person or organisation who will ultimately pay the bill. This therefore needs to be requested by the purchaser from the one paying. To do that the amount to be paid needs be be known, and therefore ...

  • Recompense is negotiated

    • As part of the request for a service or product a price has to be negotiated, including a statement of what this is expected to cover. For example, will the host cover any expenses directly, or will all expenses be covered by the supplier? Before any negotiations can happen ...

  • Potential host requests a talk (or product or service)

Link about fees and payment policies:


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