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Q: Hello

I am managing director of a company in SA.
Basically there are unauthorised creditor invoices that have been entered in to our internal accounting system.
We are not being actively pursued for the money, there is no written legal warnings and the claimed debt may be over a year old in some cases. Is it legal to process a credit in our internal accounting system so risk of inadvertent payment is averted and aged creditor is not exaggerated; without written approval from the Creditor ?
A: Thanks David
Appreciate the response
Fully agree. Leaving amounts in the system you know you dont acknowledge liability and are certain of the soundness of your stance should it be challenged....just exposes the company to risk through inadvertent payment processing which is easy to happen with online transfers etc. And again exaggerated Creditor reports dont help with bank relationships. As a manager I just want them out of our internal system immediately and reverse or pay the GST claimed . My accounts dept are insisting on formal credits from suppliers before that occurs. This leaves me exposed to risk of unauthorised payments, and in todays fast paced world want the system to reflect what we acknowledge only. Sure issues can be reversed and positions reviewed should it be challenged. Is there some CPA liability or legal responsibility or ASIC requirement that limits us simply having our known creditor position stated in our system as we fully believe....right now!!!.
question
Q: Hello

I am managing director of a company in SA.
Basically there are unauthorised creditor invoices that have been entered in to our internal accounting system.
We are not being actively pursued for the money, there is no written legal warnings and the claimed debt may be over a year old in some cases. Is it legal to process a credit in our internal accounting system so risk of inadvertent payment is averted and aged creditor is not exaggerated; without written approval from the Creditor ?