Payment from Debt Collection Agency

Karen FraserKaren Fraser Member Posts: 7
edited July 2019 in Accounts Business Range
Hi I was just wanting to know is there a particular way you enter a payment from a Debt Collection agency against the customer owing the monies.

Comments

  • Kevin V. RussellKevin V. Russell Member Posts: 336 ✭
    edited June 2015
    I always receipt the against the customer invoice but deposit it instead to a holding account. I can then use the holding account to write a cheque to the agency for their fees and deposit the net to the business bank account. Of course it depends on how the agency gets paid. In most cases you have to assign the debts to them so they take their fee before remitting the balance. Be careful to check for GST in the fees they charge as well. I hope this helps Karen.
  • Karen FraserKaren Fraser Member Posts: 7
    edited July 2014
    Thanks Kevin, yes the Collection agency has taken their fee out which leaves me a balance
  • Kevin V. RussellKevin V. Russell Member Posts: 336 ✭
    edited June 2015
    You will need to raise a credit against the invoice and post it to debt recovery charges. Apply the credit to the balance of the invoice. I hope this makes sense. Kevin t:0407744914
  • Karen FraserKaren Fraser Member Posts: 7
    edited July 2014

    Thanks Kevin, I'll give it a go. Cheers Karen

  • Nicole WadsworthNicole Wadsworth Member Posts: 2
    edited July 2019
    Sorry to hijack the post, but how do i transfer the invoices to the suspence/holding account?
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