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Join nowI have a customer that had an outstanding balance. I wrote off the balance and handed it over to collections. Now I received a check for 150.00 from the collection agency. The customer paid 200, 50 was taken by the collection agency and 150.00 was sent to me. What is the proper way to enter this so that is is allocated properly to customer and collection agency fee?
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Thanks for sharing the details with us, @RMorasse.
You'll want to create a service item for the collection fee in your invoice to satisfy the check. Then enter a line item in the invoice for the collection with a negative amount. Let me show you how in your QuickBooks Desktop (QBDT).
Here's how:
Here's an article you can read for more details: Add, edit, and delete items.
Then in case in the future you accidentally apply a credit to a wrong invoice, you can refer to this article on how to handle the situation: Remove or unapply a credit from an invoice or bill.
You can get back to us whenever you have further questions. We're always here to help. Take care and stay healthy!
Hey there, @RMorasse.
I hope your day is going great.
For this I recommend reaching out to your accountant to know the best course of action to record this in your company file. In the meantime, you can check out this thread about collection agencies and how to record it: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/sent-to-collections/00/1934....
Also, you can find a local accountant to assist you from our home page here in the Community. Scroll down the home page in the Resources section and click Find your match under Find an expert.
Please let me know if there's anything else that I could assist you with. I'll be on the lookout for your reply. You can always reach out to the Community or me anytime you find you need help. Take care and have a good one!
Thanks for the reply, but the provided link does not realy apply. My accountant can tell me how to enter it from an accountant point, but he does not understand quickbooks.
He said I should create a bill from the collection agency for 50.00 and an invoice for the customer for 150.00. Thats good, but now I have 1 check for 150.00 and somehow need to satisfy both the invoice and the bill.
Thanks for sharing the details with us, @RMorasse.
You'll want to create a service item for the collection fee in your invoice to satisfy the check. Then enter a line item in the invoice for the collection with a negative amount. Let me show you how in your QuickBooks Desktop (QBDT).
Here's how:
Here's an article you can read for more details: Add, edit, and delete items.
Then in case in the future you accidentally apply a credit to a wrong invoice, you can refer to this article on how to handle the situation: Remove or unapply a credit from an invoice or bill.
You can get back to us whenever you have further questions. We're always here to help. Take care and stay healthy!
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