Problem reported by Sarah Turner 11 years ago
When an overseas client pays an invoice my bank pay between £7 and £ 12 less into my account as a charge. How do I show this in my accounts? At the moment you have to choose bad debt and then bank charge. But then it says written off bad debt against the client which is not true. Please advise.
SolvedHi Sarah,
There are two ways you can do this. Either draw up an invoice for the full amount and then add a second item as a minus (-) and call that charges. An alternative would be to create a contra account and divide the payment up this way.
https://www.clearbooks.co.uk/support/guides/sales/how-to-create-a-contra-payment/
Chris
Hi Sarah & Chris
I tend to wait till the bank statement arrives and, when explaining the sum received, first put a negative £X to bank charges which then leaves you with the full amount to allocate against the invoice.
Alternatively, if you have already "Quick Paid" the invoice in full then I just enter a bank payment, on the same date, to bank charges.
Hi Paul and Chris
Hmmm not sure what you mean.
For instance, a client has paid a £110.00 invoice. Natwest took £7 off and paid £103.00 into my account. When I logged in to Clearbooks I said that £103.00 had been paid and I allocated the £7.00 as a bank charge. However under payment history that's now marked as a bad debt. And on my summary of sales the £110 is marked as written off even though £103 has been paid. Please see images attached.
Your advice would be appreciated.
As suggested either use a Contra Account or just enter the full £110.00 as deposited then add another transaction for -£7 explained as bank charges.
Oh I see. Just add a money out transaction like I would for any other bank charge that Natwest charges. Got it. Will go back and amend.
Thx
You must 