How would you write off 1 cent overdue? I have a customer who paid an invoice of $618.18 one cent short (they paid $618.17). How do i write the balance of $0.01 off?
if you will be billing the same customer in the future, you do not have to write it off. you can collect it when receiving the next payment.
else, you have two options.
- if you have not filed the tax returns yet, you can edit the invoice and add a discount for the 1 cent.
- you can write off the 1 cent using a journal entry to an expense account.
You can also enter another line on the receipt form when entering the customer’s remittance. On the first line, enter the short payment. On the second, enter the 1 cent as a negative number, posted to an expense account (which could be Write-offs, Miscellaneous expenses, Other expenses, or anything suitable.) This avoids having to make a journal entry.
Handle this is exactly like the invoice management fee you asked about just a few hours ago.