Difference between revisions of "How do I write off bad debts?"

Revision as of 11:56, 6 June 2011

This article explains the process to follow when you have classed an invoice as being bad debt and wish to write it off.

Go to " Sales Ledger Receipts".
Following the How do I Allocate a Payment to an Invoice? knowledge base article select the invoice you are going to write off.
Fill in all payment details and make sure that the "Payment Centre :" is set to your "Bad Debt" centre.
- If you do not have a "Bad Debt" centre you will need to create one making sure that it is created as a 'Profit & Loss - Overhead'. (see article - How do I Create a Nominal Code?).

At the end of the V.A.T. quarter you will need to do a V.A.T. Journal on the amount within the "Bad Debt" Centre.

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 {{Review}}
 == Summary ==
-This Article will explain the process that you need to take when you have classed an invoice as being bad debt and wish to pay it off the system, as there has been no response from any debt chasing.
+This article explains the process to follow when you have classed an invoice as being bad debt and wish to write it off.
 == More Information ==
-Once you have exhausted all forms of debt chasing and have decided that an invoice needs to be written off as bad debt you will need to got to:
+* Go to {{Menu|{{SL}}|Receipts}}.
-* {{Menu|Sales Ledger|Receipts}}
+* Following the [[How do I Allocate a Payment to an Invoice?]] knowledge base article select the invoice you are going to write off.
-* Following the [[How do I Allocate a Payment to an Invoice?]] knowledge base article select the invoice you are going to pay off.
 * Fill in all payment details and make sure that the {{DataPrompt|Payment Centre :}} is set to your '''"Bad Debt"''' centre.
 ** If you do not have a '''"Bad Debt"''' centre you will need to create one making sure that it is created as a {{DataValue|Profit & Loss - Overhead}}. ''(see article'' - [[How do I Create a Nominal Code?]]'')''.