How to Handle Bad Debt

Last Updated: Nov 01, 2016 01:35AM PDT

Learn how to write-off an invoice as bad debt.

Go to the invoice you want to write-off and click on Record Payment.

To write-off the invoice as bad debt:

  1. Fill out the Date.
  2. For the Payment Account choose the Bad Debt Expense account. If you don't have the account, learn how to create an account by viewing the article Setting Up Accounts.
  3. Enter the Amount.
  4. If it was in a foreign currency, make sure to Exchange Payment. In the example below, the home currency is CAD, so in the Exchange Payment field we chose Yes, for CAD.
  5. If so desired, enter a Memo explaining the reason for non-payment.
  6. Click on Record Payment.

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