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valeta
May 9, 2023
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L:ate Payment Fee to Vendor

  • May 9, 2023
  • 2 replies
  • 0 views

I need to know what account and how to record a late fee or finance charge that one of my suppliers charged me. We have an online account with the company that gives us credit. We were late paying and were charged a fee for that. I have searched high & low for an answer to this question and all I can find are  answers for applying a late fee to a customer invoice. Do I create a new account like Penalties and Late Fees, if so what type of account should it be? Or what do I do? 

 

Please help me!

Best answer by AdminAndrea

I know the standard QBO answer is "ask your accountant" but to be honest, it's not helpful. 

 

So here is an answer I hope will help you 🙂

 

Create a new expense G/L account -- Chart of Accounts - New

ACCOUNT TYPE  Other Expenses

DETAIL TYPE  Other Misc Expenses (for unusual or not frequent expenses). 

 

Your ideas to call it Penalties + Late Fees is perfect because it explains what the account is for.  

 

Save.

2 replies

J
JamesM4
May 9, 2023

Hello valeta,

 

Thanks for connecting with us here in the Community. QuickBooks is an easy-to-navigate program that helps you to manage your accounting with ease. I'll be glad to share more info so you're on the right track with your work. 

 

In order to accurately record your transactions, I highly recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in.

 

Let me know if you have questions in the comments below. I'll be one message away.

A
AdminAndreaAnswer
May 10, 2023

I know the standard QBO answer is "ask your accountant" but to be honest, it's not helpful. 

 

So here is an answer I hope will help you 🙂

 

Create a new expense G/L account -- Chart of Accounts - New

ACCOUNT TYPE  Other Expenses

DETAIL TYPE  Other Misc Expenses (for unusual or not frequent expenses). 

 

Your ideas to call it Penalties + Late Fees is perfect because it explains what the account is for.  

 

Save.

V
valetaAuthor
May 10, 2023

That is perfect! Thank you so much!

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