How do I write off bad debts?

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Summary

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

Rememeber: 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 making sure that it 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 <Arrow key Right (→)>.
  • 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,