How do I pay off an invoice that has gone bad with other rebates.

There are two ways to go about this, depending on how you want the fees to work. The first method is to settle the invoice even though it has not been paid (or even if only a small amount has been paid.) To do this, go to ‘Settle Invoices’ and select the invoice from the list. If the invoice has had any payments posted to it or if the invoice is now beyond its recourse date, it will be on the list automatically. If the invoice is not on the list, click on “Insert Invoice”, find the invoice and click on “Add.”

Then settle the invoice like you would any other. It will post a negative amount to the rebate account (in the amount of the advance plus calculated fees.) Then other positive rebate amounts entered into the rebate account will eventually bring the balance back up to zero.

If, however, the invoice is large and will take a long time to pay off, you may want to continue to accrue fees until it gets paid off. (The method above calculates fees up to the point in time you settle it.) To do this, each time you settle a good invoice that posts a positive amount in the client’s rebate account, go ahead and pay a rebate out. But instead of cutting a check to the client, turn around and post it as a payment (in the same amount as the rebate) towards the bad invoice. These small payments will continue until the invoice is paid off. At that time, you can settle the invoice and the fees will be calculated until the last payment¬†has been posted.

There is also another way to pay off a bad invoice, and that is by taking the amount due from the next schedule of invoices purchased. To do that, add a charge to the Advance schedule and check off the box ‘Apply to Client Rebate Account’.

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