Our accounting department overpaid one of our manufacturer’s rep agencies by several thousand dollars. It was an honest mistake. The rep agency is refusing to repay the money claiming it was spent or paid out in bonuses. The manufacturer’s rep agency has asked our A/P manager to take a small amount of the balance due from their commission until the balance due has been paid. I have been asked / told by the controller to try to collect the balance due. Is this my job? Do you have any suggestions?

Answer: You are in a no lose position. Best case: Your collect and are a hero. Worst case: The ‘debtor’ tells you to drop dead and you place your now former rep agency with a third party [attorney or collection agency] for collection. I honestly do not see a down side – especially if you treat this as you would any other collection problem.