Accounting for overdue invoices

[CrystalTits]

One of my international clients didn't pay an outstanding invoice for about 5 months (on 28 day terms).

After several reminders by email, I eventually reissued the original invoice to include a late payment charge (which is mentioned in my invoice terms). I calculated the charge using a govt calculator online.

The client eventually paid the original invoice amount but didn't pay the late payment charge. I'm not too concerned about pursuing them for the extra fee (esp as they are not in the UK) but how do I reflect this in my accounting, as the reissued invoice has effectively gone unpaid?

You need to credit the reissued invoice to correct the balance, as you've in effect charged then twice for the same thing.

them not then, grr bloody iPhone.

Ambi, thanks; do I just credit it in my ledger?

Depends how your system works, if you have a computerised Sales Ledger I would raise a Credit note on the clients account and reconcile the two, if it's a manual system just reverse the 2nd invoice at your month end.