hi
im not sure how to correctly record this situation.
Tenant A does not pay his rent.
Tenant A leaves and also causes some damages.
Insurance company A eventually paid out for the loss in rent and damage for Tenant A.
Currently, there is an unpaid rent invoice and unpaid damages invoice in Tenants A client account.
Money has been received from Insurnace Company A to cover this.
Do i:
- tag the money received as payment for the outstanding invoices? this would show Tenant A client account as fully paid.
or
- Setup a new clent Insurance Company A. Create an invoice for the amount being claimed for. Tag the money received as for this invoice. Put this in the correct nominal associated with the rent from Tenant A.
Then the invoice for the tenant would either need discounting to 0, credit noting, or writing off as bad debt.
or4.
- Something else?
thanks