Processing Payment Reminder or Collection Letter in Accounts Payable

You can handle the collection agency's letter and payment by selecting Accounts payable > Invoices > select the original invoice.

Handling the collection agency's letter

The collection agency's letter is removed from Accounts payable, but an image of the letter is saved and attached to the original invoice.

1. Remove the collection agency's letter from Accounts payable.
2. Save an image of the collection agency's letter on your own computer.
3. Move the saved image to the original invoice as an attachment.

Paying and allocating the collection agency's invoice

The collection agency's invoice is to be paid in full via bank transfers. The collection agency receives information about the full payment of the invoice, and the payment visible on the bank statement is allocated to the original invoice. Interest and fees are recorded on their own accounts.

1. Pay the collection agency's invoice in full via bank transfers.
2. Record the payment visible on the bank statement to the original invoice.
3. Record the interest and fees on their own accounts.

Allocating the payment to the original invoice

When allocating the payment, only the amount of the original invoice is recorded as the payment. This way the accounts payable is not recorded as too low and no reconciliation difference arises. The interest and fees are handled through the OS voucher generated from the payment, via voucher editing.

1. When allocating the payment, record as payment only the amount of the original invoice.
2. Make sure that the payment allocation does not write off too much accounts payable.
3. Handle the interest and fees through the OS voucher generated from the payment, via voucher editing.

Frequently asked questions

How do I handle the collection agency's letter in Accounts payable?
Remove the collection agency's letter from Accounts payable, save an image of the letter on your own computer, and move the image to the original invoice as an attachment.

How is the collection agency's invoice to be paid?
Pay the collection agency's invoice in full via bank transfers so that the collection agency receives information about the full payment of the invoice.

How do I allocate the payment visible on the bank statement?
Allocate the payment visible on the bank statement to the original invoice and record the interest and fees on their own accounts.

Why is only the amount of the original invoice recorded as the payment?
Only the amount of the original invoice is recorded as the payment so that the payment allocation does not write off too much accounts payable and no reconciliation difference arises.

How do I handle the interest and fees?
Handle the interest and fees through the OS voucher generated from the payment, via voucher editing, and record them on their own accounts.

Keywords

collection agency's letter, collection agency's invoice, Accounts payable, bank statement, payment allocation, original invoice, interest, fees, OS voucher, accounts payable, reconciliation difference

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