on my balance sheet i have an outstanding acct receivable from 4 years ago i want to reconcile. since we owed client an amount as compensation due to damages, how do i apply the amount customer deducted from the total invoice they owed us?
Hi Lucian1,
Thank you for bringing your concern to our attention. I apologize for any delay in our response.
I understand the significance of accurately recording all transactions in your file. The deduction can be recorded as a credit for the customer. This credit can then be applied to an existing invoice, effectively reducing the outstanding balance. I recommend going through this article, 'Customer returns, credits and refunds'. It provides a comprehensive guide to creating credit for the customer.
Please feel free to reach out if you need further assistance.
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Thanks,
Genreve
