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

Revision as of 16:32, 10 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 Invoice/Credit Notes".
On the "Date :" enter the date that you wish the debt to be written off on.
On the "Invoice/Credit :" to 'C'
On the Template:Account : set the 'account' to the customer who has "bad debt".
On the {{DataPrompt

"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.

@@ Line 4: / Line 4: @@
 == More Information ==
-* Go to {{Menu|{{SL}}|Receipts}}.
+* Go to {{Menu|{{SL}}|Invoice/Credit Notes}}.
-* Following the [[How do I Allocate a Payment to an Invoice?]] knowledge base article select the invoice you are going to write off.
+* On the {{DataPrompt|Date :}} enter the date that you wish the debt to be written off on.
-* Fill in all payment details and make sure that the {{DataPrompt|Payment Centre :}} is set to your '''"Bad Debt"''' centre.
+* On the {{DataPrompt|Invoice/Credit :}} to {{DataValue|C}}
+* On the {{Account :}} set the {{DataValue|account}} to the customer who has '''"bad debt"'''.
+* On the {{DataPrompt
+'''"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?]]'')''.