When receiving a customer payment in which the customer takes a deduction for a fine/penalty, we create a debit memo.
My question is do you book that debit memo in a cogs account or back to the AR account until it is credited?
Thank you.
I would expense it out to a discount account if you have one. Normally I would have entered the discount when doing the cash receipt in the discount field and be done with it.
*Community Hub is the new name for Sage City