Just looking for a bit of help on the below problem..
We regrettably had to take legal action against 1 of our customers, so we received payment of our solicitors in which they had taken out their fee, and the customer had to pay additional legal fees, so im am left with a balance on the customers account and an invoice on our solicitors supplier account? How do I do a transfer or acccount for this on sage?
I would say the best way would be to find out the total they paid (i.e., the outstanding amount due) and also the amount taken in fees being YOUR legal fees. Ignore completely anything they had to pay in addition relating to costs.
Then.....
1/ Receive the total paid by the customer against their account in the sales ledger.
2/ Pay out of the same bank account the amount your solicitor took from you in fees.......to legal fees or to the solicitors account on the purchase ledger if they had sent an invoice.
When you come to reconcile the bank, remember the amount paid in would be the net of the two entries above.
3/ If they haven't paid all they were due to you, then you would probably want to write off the balance unpaid.
