How do I write off bad debts?

Summary

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

• 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 "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.

See Also

• How do I Allocate a Payment to an Invoice?
• How do I call up the CRM?
• How do I print an Aged Debtor or Creditor List?
• How to process a month end
• How do I Create a Nominal Code?
• How do I Post a Journal with VAT Involved?

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Keywords AND Misspellings

Write, Debt, Write-off, Remove, Cancel, Bad, Payment, Debts, Negative,