Who should process payments?

Who should process payments?

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Hi

Suppose:

* Company A owns product P
* P is managed by company B
* The sales contract is between A and customers
* A has a contract with B such that B receives all revenue generated by P

Could B directly take payments from customers on behalf of A such that the sales contract is still with A? Or does A have to receive sales payments then pay it all to B?

It might be a bit convoluted, so thanks for your patience in advance.

Thanks

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By Richard Willis
05th Feb 2013 19:04

It mainly depends, I think,

on the VAT status of A & B.  If you literally mean the cash then I can see no reason why B cannot collect income due to A as long as it is matched to relevant invoices passed between the companies.

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