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Why do I have an Outstanding Balance owing to Marmalade?

Why do I have an outstanding balance owed to Marmalade?
When you cash-in an invoice, Marmalade has the right to receive payment for that invoice from your customer.  If you have cashed-in an invoice and your customer pays you directly as opposed to paying Marmalade’s bank details or the invoice doesn't meet the terms of our supplier agreement you will have a balance that is outstanding which needs to be paid back to Marmalade.  

How can I reduce the amount I owe Marmalade?
Encouraging your customers to pay Marmalade’s bank details and reducing the number of payments that are made direct to you will ensure funds flow the correct way and the money you owe Marmalade should be kept at a minimum. It is also important that you go through the following checklist when completing a cash-in:

  • The services have been provided or the goods have been delivered to the customer
  • The customer has received and approved the invoice
  • There are no further changes required to the invoice (e.g. Contact name, due date, due amount etc)
  • There are no disputes or challenges with the work provided or the goods that have been delivered
  • The customer is contactable and these details are on the contact in Xero

Why can’t I cash-in without paying the outstanding amount back to Marmalade first?
The money you owe Marmalade is due to your customers paying you directly for a cashed-in invoice or the invoice that was cashed-in no longer being accepted by Marmalade under the Supplier Agreement. Given Marmalade will have already paid you for the cashed-in invoice, we need to ensure that your account is settled to reduce administrative work for you.

Do I have to settle my outstanding balance via cash-in?
You have the option to settle the outstanding balance via bank transfer however; remitting funds using bank transfer may take 2-3 days to processed.  The time this takes will depend on how quickly the funds are transferred between bank institutions.  The fastest way is to settle via cash-in.

What do I do if my customer is disputing work that was approved at time of cash-in?
If your customer is disputing the work and you or they notify us we will be in touch with you to confirm that a dispute has been raised. You will then have 10 business days (14 days) to resolve this dispute. If the dispute is not resolved within this time this will be added to your Marmalade balance and once resolved will create a new invoice to ensure your customer knows this is still due and payable.

What does it cost me to settle funds owed to Marmalade via cash-in?
It’s free!  The only cost to you is your standard cash-in fees when you choose to settle via cash-in.

When I receive funds for a direct payment, how do I reconcile those funds in Xero?
When you receive funds from a payer that should have been paid to Marmalade, you will need to reconcile those funds against the Marmalade clearing account. To do this follow the steps outlined here.

If I repay Marmalade for an invoice that is still due and payable how will this be managed so my customer knows they still owe me money?
If an invoice is deemed to no longer comply with our supplier agreement but is still due and payable when you settle the money via cash-in a new invoice will be created for this customer and will show up on our regular payer statements so that your customer's know to pay this.

What if I do not cash-in invoices and repay Marmalade?
Marmalade has a built in Cashflow Collection Management solution which will use funds for non-cashed-in invoices to repay the outstanding balance of cashed-in invoices. We do all the reconciliations to make sure this process doesn't cause any administrative overhead and we're able to effectively manage your liability to Marmalade without it getting out of hand.

What if I do not agree with the outstanding balance owed to Marmalade?
If you have any questions related to funds you owe Marmalade, please contact your account manager or reach out to us at support@withmarmalade.com.