How to credit a finance or re-billing charge
As all of you are aware, finance and re-billing charges are just a tool to get the customers to pay.
Most of the time, they will send the payment without including the amount of the additional late charge.
Most of you will accept this as full payment and waive the finance charge.
There are several ways of getting rid of a finance or re-billing charge, but the only way I recommend is by including a finance/re-billing charge allowance when entering the payment from the customer.
This works well whether you are sending balance forward or open balance statements.
Here is the proper way to waive a finance/re-billing charge.
By the way, this is also the correct way to apply a sales allowance as doing it from here will reduce your sales tax liability.