We have two customers that were passed to a debt collection agency. They have since paid but a fee was taken from their payments for debt collection and so we only received part of what they owed.
How would this be posted in sage?
Customer A owed £317.04
Customer B owed £205.63
The debt collection agency has paid £510.91 into our account. I take it I will need to find out what the fee was on each one so that I can post the correct figure on each? However how would I post/write of the amount left over for the fee?
This was a with recourse arrangement where you never really lost responsibility for the debt.
As such I would take it that the customers paid in full and you paid a fee of £11.76 to the collection agency.
As a complete aside, those fee's seem very very cheap for a collection agency (just over 2%).
Seems hardly worth their time and effort chasing the debt for that return.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
It seems very strange to me too Shaun. I always thought the customer paid the fee too. Plus the debt collector has had these payments since march and it took alot of chasing to actually get them to be paid to us.
