How to set up my collection book keeping system in QB.
6/24/09 5:46 PM, Viewed by asker 8/18/09 3:26 PM
Total Views: 486
How to set up my collection book keeping system.
* I have debtors or customer in account receivable that they do not take seriously their debt.
* And actually, I am using a collection company that work debts on behalf of my company.
* This company work on a percentage of the face value (amount awed), where they receive 50% of the amount they collect.
1. How should I enter onto QB system to my Collection Company to be able to control the debtors assigned?.
2. Should I take out all my debtors that were passed to the Collection Company?.
3. If it was true. How?.
4. And also. How should I enter the debtors's paid invoices?.
5. How pay the Collection Company within QB system.
Thank in advanced
Note: Sorry, If the category for my question is not correct.
Answer
I have also had to send a few customers to collections. What I did was create a separate Accounts Receivable account which I call Legal. You can call yours collections or something.
I went into every outstanding invoice and moved them from the regular A/R account to my new Legal A/R.
That took the total out of my regular A/R account. Now when I look at my A/R reports I see a realistic amount...not one inflated by "bad debt."
Now you just sit back and wait for the collections company to collect the money.
The collections company becomes one of your vendors. You will pay the collections company in the same way that you would a regular company - assuming that they send you a bill.
This will explain the first part - out to separate out your debtors. That would be your first step.
Answer
Thank for your answer
I did everything you recommended. But, I have another question.
The Collection Company sent us an statement / invoice and a check.
Where they details the following:
1. The amount collected for each debtor or customers in account receivable.
2. Example:
Statement/Invoice for: Company Name
Date - Debtor - % - Amount paid agency - Amount paid you - Due us - Due you
Information
===============================================================
5/18/09 El Sol 50% 67.36 33.68
The question: How can I set up the amount that corresponds to the company and the check that it is for us?.
