A common practice is to remove the collection agency's letter from the accounts receivable, but save the image, for example, on your own computer and attach it to the original invoice. The collection agency's invoice is paid in full via bank transfers (this way the collection agency receives information about the full payment of the invoice) and the payment visible on the bank statement is allocated to the respective original invoice, while the interest and fees are recorded on their own accounts.
When allocating the payment, only the amount of the original invoice should be recorded as the payment; otherwise, the payment allocation will write off too much accounts payable and result in a reconciliation difference. The interest and fees are then handled through the OS voucher generated from the payment, via voucher editing.
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