Receiving Reduced Payments in QuickBooks
A reader wrote to ask how to handle customer payments in QuickBooks that come through a collection agency. The customer pays the agency, which takes its commission and remits the balance. How do you pay off the invoice in QuickBooks with this reduced amount?
Use the QuickBooks Receive Payments window and enter the amount received from the collection agency. Select the invoice(s) linked to the payment. Click Discounts and Credits and use the Discount tab to post the remaining balance to an expense account named Collection Fees. This clears the balance on the invoice(s).