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

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This article explains the process to follow when you have classed an invoice as being bad debt and wish to write it off.
 
This article explains the process to follow when you have classed an invoice as being bad debt and wish to write it off.
  
{{Warning|title=Rememeber|text=To check the V.A.T. rate of the invoice '''Prior''' to posting. Make sure the ''Credit'' is posted the same.}}
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{{Warning|title=Remember|text=To check the V.A.T. rate of the invoice '''Prior''' to posting. Make sure the ''Credit'' is posted the same.}}
  
 
== More Information ==
 
== More Information ==
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{{Note|text=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?]]'')''}}
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{{Note|text=If you do not have a '''"Bad Debt"''' centre you will need to create one ''(see article '' - [[How do I Create a Sales or Purchase Centre?]] '').'' Make sure that it is linked to a nominal code which is created as a {{DataValue|Profit & Loss - Overhead}}. ''(see article'' - [[How do I Create a Nominal Code?]]'')''}}
  
  
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* On the {{DataPrompt|Comment: }} type {{DataValue|Bad Debt}}, and press {{KeyPress|Enter}}.
 
* On the {{DataPrompt|Comment: }} type {{DataValue|Bad Debt}}, and press {{KeyPress|Enter}}.
 
*Click the {{Button|Invoice}} button at the bottom of the page or press {{KeyPress|F5}}.
 
*Click the {{Button|Invoice}} button at the bottom of the page or press {{KeyPress|F5}}.
* On the new screen underneath the '''"Product Description"'' enter a reason for the "Write off", then press {{KeyPress|Arrow key Right (→)}}.
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* On the new screen underneath the '''"Product Description"'' enter a reason for the "Write off", then press {{KeyPress|Right Arrow (→)}}.
 
* Below '''"Total Nett"''' enter the net amount of the invoice to be written off.
 
* Below '''"Total Nett"''' enter the net amount of the invoice to be written off.
 
* Once happy click {{Button|Invoice}} or press {{KeyPress|F5}} which will show a summary of the credit.
 
* Once happy click {{Button|Invoice}} or press {{KeyPress|F5}} which will show a summary of the credit.
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* [[How do I print an Aged Debtor or Creditor List?]]
 
* [[How do I print an Aged Debtor or Creditor List?]]
 
* [[How to process a month end#Sales Ledger|How to process a month end]]
 
* [[How to process a month end#Sales Ledger|How to process a month end]]
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* [[How do I Create a Sales or Purchase Centre?]]
 
* [[How do I Create a Nominal Code?]]
 
* [[How do I Create a Nominal Code?]]
 
* [[How do I Post a Journal with VAT Involved?]]
 
* [[How do I Post a Journal with VAT Involved?]]
  
 
{{FAQ}}{{KB_Tags|Write, Debt, Write-off, Remove, Cancel, Bad, Payment, Debts, Negative,}}{{KB_SL}}{{KB_PL}}
 
{{FAQ}}{{KB_Tags|Write, Debt, Write-off, Remove, Cancel, Bad, Payment, Debts, Negative,}}{{KB_SL}}{{KB_PL}}

Revision as of 15:50, 17 June 2011

Summary

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

Remember: To check the V.A.T. rate of the invoice Prior to posting. Make sure the Credit is posted the same.

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.
  • Set the "Invoice/Credit :" to 'C'.
  • On the "Account :" set the 'account' to the customer who has "bad debt", press <Enter>.
  • On the "Sales Centre :" enter the 'Sales Centre' for 'Bad Debt' and press <Enter>.


If you do not have a "Bad Debt" centre you will need to create one (see article - How do I Create a Sales or Purchase Centre? ). Make sure that it is linked to a nominal code which is created as a 'Profit & Loss - Overhead'. (see article - How do I Create a Nominal Code?)


  • On the "Analysis Codes" press <Down Arrow (↓)> key.
    • This will load up a New Screen called "Document To Credit Selection" which will list the invoices that are outstanding on the account.
    • Select the correct invoice you want to "write off" and click [OK], which will automatically fill in the "Document :".
  • On the "Comment: " type 'Bad Debt', and press <Enter>.
  • Click the [Invoice] button at the bottom of the page or press <F5>.
  • On the new screen underneath the '"Product Description" enter a reason for the "Write off", then press <Right Arrow (→)>.
  • Below "Total Nett" enter the net amount of the invoice to be written off.
  • Once happy click [Invoice] or press <F5> which will show a summary of the credit.
  • Click [Invoice] or press <F5>, which will print out the credit note.
  • Click [Accept] and the Debt will be credited off.

See Also


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Keywords AND Misspellings
Write, Debt, Write-off, Remove, Cancel, Bad, Payment, Debts, Negative,