Write Off Bad Debts

Write off bad debts

The simplest and cleanest way to write off unpaid debts is to add a line item to the invoice as a negative amount with Category set to ‘Bad Debt’.

Go to Setup Files > Account Codes and make sure a ‘Bad Debts’ category has been set up.

Then, go to Setup Files > Fees > Miscellaneous and make sure a ‘Bad Debts’ record has been set up. Description 1 can set to ‘Unpaid Amount Written Off’ or a suitable alternative.

Finally, go to the Line Items tab in the debtor's record and select New Record to add a new line item. Set Category to 'Bad Debt', Description 1 to 'Unpaid Amount Written Off', and Amount to credit the unpaid amount on the invoice.

Finally, select Add to Existing Invoice to add the line item to the relevant invoice. If the correct amount was entered on the line item, the invoice Amount Outstanding will be ‘$0’.