How To Remove Bad Debt That Will Never Get Paid.

How Do I Remove Bad Debt/Invoices That Will Never Get Paid?

1. Make sure you have a GL account set up for write-offs or bad debt or something similar.
2. Select the invoice you need to write off using the “F7” key or on the menu bar open “Sales” and “Find Invoice(s)”.  Type the invoice number and pull up the correct invoice.
3. Click on the AR/AP Menu and select Receive Payments.
4. Select the customer account from the drop down combo box.
5. Click on the Mag Glass next to the invoice that you need to write off to verify this is the correct Invoice.
6. Click on the DEP TO ACCT drop down combo box and select the Bad Debt / Write Off expense account that you created for write offs. *(See below to create a write off account)
7. Click on the drop down combo box for HOW PAID and select Write Off
   
8. Make sure the “DEP” box is not checked or the payment will show in Undeposited Funds.
9. Enter the amount in the AMT PAID
   
10. Allocate the Payment by clicking the Auto Allocate button or the stack of Golden Coins next to the Mag Glass on the line for the invoice that you are about to write off.
    
11. Click on Apply Payments and OK in the pop-up
    
12. Close payment window.
13. The payment you made will display in the payments area and the “Amount Due” for the invoice should now be 0.
14. To see this amount in your bad debt account in your chart off accounts you will need to POST this payment.

*To create a new GL Account for Bad Debts see, How Do I Create a New GL Account in My Chart Of  Accounts?