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So there is an unpaid invoice that we would have to write off.
The thing is the write off isn't straightforward. Only a portion of the invoice is going to be absorbed by the company in the form of Bad Debts Expense and a portion of it will be going to the Sales Rep.
How do I go about that?
Any input will be very appreciated. Thank you!
The former will reflect the full loss in Bad Debt and you will be good. The latter still reflects a write-off and a portion in Bad Debt and portion in the GL Account for Salesperson, so 50/50 split between 2 accounts.
Thanks,
Steve
Hello,
When you say a portion is being absorbed by the Sales Rep are you talking about commission impact? The accounting posting does not care if you want to impact the write-off against the commission or not. Let me explain:
The Credit Memo will go against a GL Account Bad Debt Expense for the total amount. The Salesperson code on the Credit Memo would show the Salesperson and the amount will effect their commission. If you only want a portion to effect them, I would post 2 Credit Memos, 1 with the Salesperson Code and 1 without. The GL Account is the same Bad Debt Expense, unless you are stating you want the portion effecting the Sales Rep. to book to a G Account called Salesperson Commission. Again, not sure which way you want to effect the Sales Rep.
Hope this helps.
Thanks,
Steve
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