Invoice partially paid by another company.

SOLVED

I am having a problem deciding how to post the following And would really appreciate some help. We are a construction co. Who did work for Company A And we invoiced them. After months of trying to collect our money we hired a layer to help us collect. Due to rising court costs, Company B paid us roughly 90% of the amount owing to us on Company A's behalf. Company B will continue legal proceedings to collect all monies owing, including money owed to us. My problem is, how do I post receipt of the money from Company B on company A 's behalf. I am using sage 50 premium, 2014.2

  • 0

    Hi Bonnie,

    Since you are using Sage 50 CA, I will move your post to that forum so that other users of the product will see your question and be able to offer their thoughts and insight.

    Please note that the Town Hall is for Sage City tips and tricks, as well as surveys and feedback on the site. For technical questions, please be sure to post those in the applicable Product Support Community.

    Thanks,

    Derek

  • 0 in reply to Derek Vink

    One way could be to create a credit invoice to Company A and use something like 'CompanyBPayment' as the invoice number. Enter comments in the description column to explain what it is about and code the credit amount to the bank acct. You can leave it as is or go into the payment module and enter the amount of CompanyBPayment against the Invoice(s) owing and also enter the CompanyBPaymnet invoice to make it a nil payment.

  • 0 in reply to Smith and Co

    Thank you so much for your help. I should have thought of that.  Thanks again

  • 0 in reply to Smith and Co


    so I understand

    company A has a 105$ open invoice (100$ sales + 5$ gst)
    Account Number      Account Description                        Debits        Credits
    __________________  ________________________________   ______________ ______________
    1200                Accounts Receivable                        105.00              -
    2310                  GST/HST Charged on Sales                      -           5.00
    4100                  Consulting Revenue                            -         100.00


    now company B pays me a portion (say 80$), which is recorded as a payment from company B
    I presume that sales account is the same as the original invoice ?
    or do I create a 'received from collection' account ?
    Account Number      Account Description                        Debits        Credits
    __________________  ________________________________   ______________ ______________
    1020                Cash to be deposited                        84.00              -
    2310                  GST/HST Charged on Sales                      -           4.00
    4100                  Consulting Revenue                            -          80.00



    and I create a credit invoice for company A and I apply it to the company A outstanding invoice
    Account Number      Account Description                        Debits        Credits
    __________________  ________________________________   ______________ ______________
    2310                GST/HST Charged on Sales                     4.00              -
    4110                Bookkeeping Services                        80.00              -
    1200                  Accounts Receivable                           -          84.00

    company A still owes 21$, and if I get more funds from company B, I repeat the steps above
    and if, at some future date, I decide to, I would just write off the amount (21$) owing ?

  • 0 in reply to Roger L

    Not quite since you are showing the GST etc for Company B's payment which should not be used.

    Original invoice to Company A will be:

    Inv#12345

    Inv date Nov1/12

    1200 A/R = 105.00

    2310 GST = 5.00

    4100 REV = 100.00

    Company B pays 80.00 so next invoice to Company A will be:

    Inv#CompanyBPmt

    Inv date Mar4/14

    1200 A/R =  -80.00

    1020 Cash = -80.00

    Aged Detail for Company A will look like this:

    Inv 12345                 Nov1/12  105.00

    Inv CompanyBPmt   Mar4/14   -80.00

    Outstanding Balance                 25.00

    The receipt module will look like:

    Inv 12345                Amt Owing  105.00   Amt Received 80.00

    Inv CompanyBPmt  Amt Owing   -80.00  Amt Received -80.00

    thus creating a nil receipt amount.

    If write-off need to occur because it is uncollectable then you would create an invoice as follows:

    Inv# W/O @Dec31/14

    Inv Date: Dec31/14

    1200 A/R = -25.00

    2310 GST = -1.19

    5520 BadDebt = -23.81

  • 0 in reply to bonnie houlahan

    Hi Bonnie Houlahan,

    If any suggestions provided in this thread is able to help you resolving your issue, would you please click the 'Yes' button to the question - 'Did this answer the question?'  The thread will be marked as answered, which will benefit other users who have the same issue.  Thanks a lot.

  • 0 in reply to Keith L

    Hi Keith - I cannot see where it asks Did this answer question. It did answer the question - yes. But where is the question.

  • 0 in reply to bonnie houlahan
    verified answer

    Hi Bonnie,

    You should be able to verify answer now.  

    Thanks