Process to Write Off Bad Debts

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Process to Write Off Bad Debts

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1.A true bad debt is when the court rules that you will not receive payment.  If this is the case refer to chris meyer of pbc

2.If you are writing off an invoice balance proceed as follows.

3.Double click on debtors.

4.Double click on transactions.

5.Double click on adjustments.

6.Put debtor number in.

7.Choose invoice number from list.  If negative amount cancel list and say yes to display zero and negative invoices.

8.Do not use a negative sign in front of the amount.  The computer adjusts automatically.

9.If you are writing off a balance on an invoice make sure the GST is zero.  If you are writing off an entire invoice leave the GST as it shows on the screen

10.At the bottom of the screen is the general ledger details.  The GST will come up as a line automatically.

Create a new line and right click.  This will show you the original allocation of the invoice.  Double click on the g/l number that you want and this will appear in the second line of the adjustment

11.Write some text in the comments box.  Eg.  Write off balance of invoice.