India (Part 3)

Wrapping up the last issue, I noted that: I was happy that we had ‘solved’ the problem.

The request for warranty coverage on the servers that we were ‘giving’ to the customer was not unreasonable. The servers were basically useless unless they were maintained. We agreed.

The payment issue was a little more complex.

“We would like to pay the invoice, Dan, but we can’t.”I was speaking with Finance in India.

“Really? Why not?” I asked.

“These servers came from Europe.”

“No local or Asia-Pacific servers could be found.”

“I know, but, the corporate standards of business conduct make it impossible for us to pay for this.”

“Because?”

“It might be interpreted as a gray market activity.”

“No problem,” I replied. “It is a very small payment. I’ll just arrange for it to be paid by our colleagues in Europe.”

But:

“We would like to pay the invoice, Dan, but we can’t.” European finance attempted to enlighten me.

“Really? Why not?” I asked.

“The servers were delivered in India.”

“Yes, that what we agreed to do.”

“If we pay for delivery of European servers into India, it will violate the corporate standards of business conduct.”

“Somehow, I’m not surprised,” I thought.

“Just get ask the customer in India to issue a PO to us.”

“A PO for what?”

“Nothing. It’s just a way to get the money to the customer.”

“Are you sure that won’t violate the corporate standards of business conduct?”

It didn’t. And:

I was happy that we had [Finally} ‘solved’ the problem.

Except: the customer didn’t like that solution.

After considering writing them a personal check and claiming it on the travel and expense account, I proposed a ‘credit note’. This meant that the customer would receive a discount on a future order. The discount would balance the problem invoice.

It appears that the customer (Exhausted, perhaps?) has agreed.

The credit note has been issued. Of course they haven’t ordered anything because they’re able to use the ‘free servers’ to meet the current needs.