The Clock is Ticking: Shops Must Report Short Pays Within 30 Days

With the announcement last week of changes to its Network Participation Agreement that it is instituting a $13-per-paper invoice charge for replacement jobs and a $9 fee for every paper invoice filed for repair jobs, Safelite also included a clause that requires reporting short pays and errors to the company quickly or risk losing the difference.

Provision 2.3 has been amended to read: "In the event that Participant submits an invoice for auto glass repair or replacement work containing errors or deficiencies, Participant must so notify Safelite within thirty (30) days of receipt of payment for such work. Should Participant fail to do so, Participant will forfeit any balance claimed relating to the work and Safelite will not submit the revised invoice to the insurance or fleet company for additional payment and Participant shall not seek reimbursement directly from the policyholder or fleet company."

Translation: Report a short pay or error within 30 days of receipt of payment or forfeit any right to the difference from Safelite or its customer. That means network participants will need to notify Safelite within 30 days of receipt of the check or 30 days after the funds were transferred to their account, or they lose the right to collect what's missing.

If a shop owner or manager decides to save paper processing fees by submitting invoices and receiving payments through electronic data interchange (EDI), the accounting department will be need to reconcile such payments quickly.

"There could be a challenge with the timeframe," said Shawn Newport, owner and president of Star Glass in Erie, Pa. "You want to make sure you are meeting the contractual agreements to which you agree.