Payment from Debt Collection Agency

  • 1
  • Question
  • Updated 1 month ago
  • Answered
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.
Photo of Karen Fraser

Karen Fraser

  • 160 Points 100 badge 2x thumb

Posted 5 years ago

  • 1
Photo of Kevin V. Russell

Kevin V. Russell, Accredited Partner

  • 5,580 Points 5k badge 2x thumb
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.
Photo of Karen Fraser

Karen Fraser

  • 160 Points 100 badge 2x thumb
Thanks Kevin, yes the Collection agency has taken their fee out which leaves me a balance
Photo of Kevin V. Russell

Kevin V. Russell, Accredited Partner

  • 5,580 Points 5k badge 2x thumb
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
Photo of Karen Fraser

Karen Fraser

  • 160 Points 100 badge 2x thumb

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

Photo of Nicole Wadsworth

Nicole Wadsworth

  • 70 Points
Sorry to hijack the post, but how do i transfer the invoices to the suspence/holding account?