I have charged debt collection costs and interest for an overdue invoice - and been paid it! My customer account now looks overpaid - do I open an account in the nominal called "Debt collection costs" and raise an invoice to this account? If so - where in the nominal should this account be? near professional services?
It becomes part of your turnover as does any Income from any source (even re-imbursed expenses from clients) are still sales - so either just put to income/sales ledger or if you want to have it in a separate account - set it up near your other sales accounts. I presume you have a separate account already for Interest received?
-- Edited by YLB-HO on Wednesday 25th of May 2011 07:01:13 PM
