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Write Off Bad Debt

Easily manage your accounts for non payment

Updated over a week ago

Bad debt is when outstanding balances are owed that are no longer deemed recoverable and must be written off.

Incurring bad debt is part of the cost of doing business with customers, as there is always some risk that is associated with extending credit or non-payment of accounts.

In this article, we will discuss:


Overwriting the fee

Sometimes you have applied a credit to an invoice due to overpayment. The credit has now been used completely for another outstanding invoice however, the balance is still showing as i.e - $100. To remove this amount follow the steps below.

1. Navigate to the invoice via Client > Invoicing > Invoice > Actions > Unlock

2. Open the invoice by double-clicking the invoice number

3. Go to "Billing Information", and overwrite the fee by deleting the amount and placing the fee as $0.00.

4. You can now state the amount of the fee in invoice notes and then select Update Invoice to save changes.

πŸ›‘ This will display in financial reports as no incoming and outgoing amount, and the service type will also be removed, so you will need to make the notes via " invoice notes" so you can refer to what has occurred.


Paying with the payment method: Bad Debt

1. Navigate to the invoice via Client > Invoicing > Invoice > Actions > Unlock

2. Open the invoice by double-clicking the invoice number

3. Go to "Billing Information" and select the $ Icon

4. Enter the amount of the invoice > select Payment Method > Select Debt Write Off 5. Select Ok

πŸ›‘ This payment method will show as a " Debt write-off" in the financial reports, however, it will show as an amount paid not a deficit.


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