What to do with a portion of unpaid interest?

1

I have a client who paid an invoice late and interest had accrued. When he paid, the amount he paid was $3.55 less than the full amount due because add’l interest had accrued between when he got my statement and when he paid. I would rather not chase him for $3.55. What is the best way in Manager to dispose of the $3.55? Thank you.

2

Create a Credit Note in the clients name and for the Account use the same Interest account.

1 Like
3

Thank you.

4

If you don’t plan to be using the Credit Notes tab in the future and would like to avoid enabling that tab (which will remain with you forever), you can accomplish the same thing with a journal entry:

  • Debit an expense account. You could use a miscellaneous or other income account or create a customer adjustments account.
  • Credit Accounts receivable => Customer => Invoice