Control Account for Late Payment Fee & Interest

1

Hello,

Our tax authority has a specific item code for “Accounts Receivable: Interest”. However, manager posts late payment fees to the hard-coded “Accounts receivable” account. It would make sense to be able to separate these not only for our reporting purposes, but also for accounting and performance purposes.

Edit: Additionaly, if would be great to be able to mark certain invoices as “Doubtful” to separate expected inflow of cash from unlikely inflow of cash. Again, our tax authority also has distinct reporting codes for “Accounts Receivable : Doubful” accounts, and in fact it has sub-categories for each type of account same as in accounts receivable (i.e., there is a code for “AR: Doubtful - Interest”).

Please share your thoughts and support for this feature. Thanks.

2

According to current implementation late payment fee is already shown in a separate income account. Account receivable shows the total liability you customer has to pay. So, there is no point in receiving the late payment fee separately from the rest of the account receivable amount.
However there should be an option to add more than 1 account connected to Customers/Suppliers/Employees which may be used for Security or Advances etc and then if we want we can get combine statement or of individual account for each Cust/Supp. Currently it is done for Withholding account which is connected to Customers but we cant create our own accounts. Special accounts can be used for this but you have to create customer manually in those accounts and that account cant be shown as column on Customers tab.

3

Thanks for sharing your thoughts and knowledge of the software, however regardless using accrual basis should not mean that one does not care about total income vs receivable for a specific category. Obviously in principle income only goes up while receivables fluctuate. It is not as though having a separate category on the right side will give a clear idea of what is due on the left.

Additionaly, as I had mentioned, our tax authority has separate codes for reporting Receivable Interest.