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PS Cashbook

Write Off Bad Debt

Summary

How do I write of a bad debt (unpaid debtor invoice)?

Detailed Description

Create a Bad Debt Expenses account in Chart:

  • Click on the Chart toolbar icon.
  • Click on the Expenses tab.
  • Click on the Add button.

For example:

 

  • Click on the Debtors toolbar icon.
  • Click on the Invoices tab.
  • Edit the invoice that is to be written off as a bad debt and make note of the details.
    • Amount of invoice still unpaid. 

For example:

  • Cancel/Exit out of invoice.
  • Click on the Add button.
    • Customer - e.g. Jack Smith (as above)
    • Date - e.g. today's date (not the date of the original invoice).
    • Form - select CREDIT NOTE from the drop-down list.
    • Ref. - e.g. CR9
    • Detail - Write Off Bad Debt (Inv# 9) - Harvesting 005
    • Account - 106 Bad Debt Expenses (the account you created in Step 1)
    • Enterprise - (if applicable)
    • Quantity, Rate/Price, Amount - enter these exactly the same as orginal invoice but entered as a negative.
    • Click OK button to save.

For example:

  • Click on the Cashbook toolbar icon.
  • Click on the Add button.
    • Choose Type - Receipt (deposit).
    • Click on the Invoices button.
    • Tick the original invoice and the matching credit note in the P column.
    • Click OK to return to the Add Transactions window.

 

  • Click on the OK button to save.

 

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