BAD DEBT PROCESSING

How to write off the balance due on invoice as a bad debt.
You will need to know your GL Account for Bad Debts. It will be a 6000 account, an expense.

Find the Customer.
Go to Commands > Adjust Receivables

Enter the information as requested.
The Bad Debt amount will a a positive number.
The Offset Account will be the GL Account for Bad Debts.
Apply the Amount to the Bad Debt Invoice.

Click OK.

Unclaimed Credits can be processed the same way, using Negative numbers. You may need to check with your accountant to determine the proper Offset Account. It may be “Other Revenue” or “Allowances”, both are 4000 accounts.

You can write off many invoices for multiple customers by doing a batch process.

Commands > ..Multiple Customers
Click the Change Offset button at the bottom of the window.
Enter your Bad Debt Account and Click OK

In the Check Number field enter Bad Debt
Double Click each line to fill in the Applied Amount with the Total Due for each invoice.
After you have a total, enter it in the Check Amount field.
Change the Memo to something that makes sense.

Click OK

Last Revised: 12/20/2013 SV