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Penalties / Fines

andrewmalliaandrewmallia Member Posts: 1

Dear Sir/Madam,
Can you kindly advise on how do we record fines/penalties into waveaccounting?

Many thanks in advance

in Accounting Technical Support

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    andrewmallia,
    Here in the US penalties are not deductible for tax purposes but you would still create an expense under Operating Expenses for "Fines and Penalties" . Classify any payments that would meet the definition there.
    Mike G, CPA
    www.mgfinancial.net

  • TudeTude Member Posts: 5

    Hi,

    I am a sole trader and one of my contractors has deducted £60 from the invoice payment so now my income against the paid invoice is still owing £60. The bank transaction shows £500 when the invoice value was £560. Do I just change the income transaction to £560 and add a note that it was only £500 received and then do a parking/ fines expense as described above?
    Thanks Scott

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hello @Tude !

    Do you mind clarifying the £60 deduction a bit further?

    If you'd like, you can head over to Sales > Invoices and select the invoice in question to edit the amount accordingly. This will remove your customers remaining balance for the invoice. Alternatively, if it is a discount or refund, you will need to record the deduction as such.

    Please keep in mind that invoices are live links so if you edit the invoice amount, this will be displayed on your customers end as well.

    edited December 14, 2020
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