KBM 07 Rechnungswesen und Mahnwesen (EN)

KBM 07 Accounting and Debt Collection

In this module, you will learn the fundamentals of accounting with a focus on the correct creation of invoices according to § 14 UStG. You will acquire knowledge in calculating discounts and understand the structure of debt collection procedures. The practical application of collection stages and understanding of the judicial collection process will complete your professional expertise.

Concepts and Background

Invoice according to § 14 UStG

An invoice correctly issued according to German tax law must contain certain mandatory information, such as invoice date, consecutive number, names and addresses of service provider and recipient, quantity and price of the service, tax rate and amount, as well as the reference to value-added tax.

Discount (Skonto)

A discount is a reduction granted for payment within a specific, short period. It serves to accelerate payment receipt and is stated as a percentage of the invoice amount.

Debt Collection

Debt collection is the process of written reminders for outstanding payments. It includes several stages, from the friendly reminder to the final notice before legal action.

Judicial Collection Procedure

A simplified judicial procedure for creating a payment reminder order, which serves as the basis for enforcement. It is applied for at the competent local court.

Practical Steps

1. Create an invoice with all mandatory information according to § 14 UStG. This establishes the legal basis for your claim.
2. Set payment terms, including discount period and amount. Example: "Payment within 14 days, with 2% discount for payment within 7 days."
3. Send the invoice promptly after service provision. Quick invoicing promotes timely payments.
4. Wait for the payment period to expire and check for payment receipt. Only if payment is not received does the collection process begin.
5. Send the first reminder with a friendly reminder and deadline. This should address the delay politely but clearly.
6. If payment is still not received, create the second reminder with reference to possible consequences such as late payment interest. This indicates seriousness.
7. In case of continued refusal to pay, initiate the judicial collection procedure. This is the formal way to enforce your claim.
8. Apply to the competent local court for a payment reminder order. For this, you need the online collection procedure of the Federal Ministry of Justice.
9. Respond to any objections from the debtor and, if there are no objections, proceed with the enforcement order.
10. Document all steps of the debt collection process carefully. Complete documentation is crucial for any potential legal disputes.

Common Pitfalls

Further Resources

• Federal Ministry of Finance: Invoicing Requirements
• § 284 BGB: Default of the Debtor
• Federal Ministry of Justice: Information on Collection Procedure
• Chamber of Commerce and Industry: Invoicing Obligation under UStG
• Handelsblavisibilis: Create a Legally Secure Invoice

Knowledge Check

Four questions for self-assessment. Click on each question to see the correct answer and explanation.

Which of the following pieces of information is NOT mandatory according to § 14 UStG in a correct invoice?

• A) Invoice date and consecutive number
• B) Names and addresses of service provider and recipient
• C) Quantity and price of the service
• D) Bank details of the invoice recipient

Correct Answer: D. Bank details are not a mandatory requirement in an invoice according to § 14 UStG, while the other options all contain required information.

What is the main purpose of the discount in an invoice?

• A) To offer the customer an additional service
• B) To improve the company's liquidity
• C) To accelerate payment receipt
• D) To test the accounting software

Correct Answer: C. A discount primarily serves to accelerate payment receipt through an incentive for early payment, while it does not directly improve liquidity or is intended as a service.

Which of the following statements about debt collection is correct?

• A) Debt collection begins before the invoice is sent
• B) The first reminder should be sent before the deadline expires
• C) Debt collection extends over several stages
• D) Debt collection is legally prohibited

Correct Answer: C. Debt collection includes several stages from the friendly reminder to the final notice, while it should not begin before the invoice is sent and is legally permissible.

What is the first formal step in the judicial collection procedure?

• A) Initiating a settlement discussion
• B) Applying for a payment reminder order at the local court
• C) Initiating insolvency proceedings
• D) Publishing the claim in the newspaper

Correct Answer: B. The first formal step in the judicial collection procedure is the application for a payment reminder order at the competent local court, which serves as the basis for enforcement.