What happens in your accounting if you\u2019re only paid partly at times? It\u2019s one thing to consider whether it\u2019s acceptable for you, but another to give it a proper treatment in your accounting.\u00a0<\/p>\n
When you initially take up a receivable, you debit your assets (i.e. \u201cAccounts receivable\u201d or \u201cOther receivables\u201d or something else) and you credit your income, either \u201cSales revenue\u201d or \u201cOther income\u201d. Now, if you\u2019re paid in full, you\u2019d debit your cash and credit the receivables thus showing you got money and you no longer have this specific receivable outstanding.<\/p>\n
However, if you\u2019re only paid partly, it\u2019s the part you debit into cash and the same part you credit off the receivable still leaving part of the balance as unpaid and as a receivable. It\u2019s something you haven\u2019t been paid.<\/p>\n
It\u2019s important to keep track on such receivables and to keep them under tight observation nonetheless. Paying only partly is an indication that your client is or may be facing some financial difficulties. If you can handle the late payments, be sure to let them know that there are conditions to such treatment, i.e. they must prepay 50% or that there\u2019s only so much they can into credit with you and so on. And if you cannot handle such late payments since you\u2019ll run into problems your own, let them know and stop such business right then and there.<\/p>\n","protected":false},"excerpt":{"rendered":"
What happens in your accounting if you\u2019re only paid partly at times? It\u2019s one thing to consider whether it\u2019s acceptable for you, but another to give it a proper treatment in your accounting.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[],"class_list":["post-4974","post","type-post","status-publish","format-standard","hentry","category-1-17-accounts-receivable"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4974"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4974\/revisions"}],"predecessor-version":[{"id":4975,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4974\/revisions\/4975"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}