Partial payment on account - debt collection fees


We had to do debt collection for two invoices one of our customers didn’t pay £289 + £918.

The interest, court fee, fixed costs and compenstion came to £345.16.

The customer made two payments £1315 + £237.16.

So it all balances at £1552.16.

In the bank I tagged the payments as Payment on Account, then went into the Customer Accounts and paid off the two invoices.

How do I get the balance of £345.16 onto the General Ledger? If I raise an invoice to the customer it ends up in sales. Do I then journal it out of sales or is there a simpler way? Or indeed can it just go to sales?


What we did in the end was raise an invoice that we didn’t send to the client, so like an internal invoice on that client’s account, for the interest and compensation. We then paid the invoice with the payment sitting on the account. And then we journalled the interest and compensation into Miscellaneous Income. There may have been an easier way, but couldn’t see it.

When you create an invoice you can click the cog icon and select any nominal you want to post each line to. Saves the journals at least.