Our company has a customer with outstanding invoices who stopped paying. We settled on an amount for them to pay off which is less than the balance of the invoice.
There are two options (I think) for how we'd handle this:
1. Apply a credit memo to the original invoice for the amount we're writing off. Then apply any consecutive payments to the original invoice.
OR 2. Apply a credit memo for the full amount of the invoice. Then create something (unsure if it's a GL Account for Collections Payments or another invoice) to apply the collections payments to.
Which would be the best way to go about accounting for these in AS's system? Also open to other ideas!
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