Write Off Bad Debt through Accept Customer Payments

An open customer balance can also be written-off using the Accept Customer Payments page without creating a separate journal entry.

 

To write off bad debt in the Accept Customer Payments page:

 

1. Navigate to Transactions > Customers > Accept Customer Payments.

 

2. Select the Name/Job in the Customer field.

 

3. If there are multiple Receivable accounts, select the correct account in the A/R Account field.

 

4. In the Apply tab > Invoices subtab > check the transaction that has to be written off.

 

Note: If only a portion of the Invoice has to be written off and not the entire amount, manually type in the amount in the Payment column of the Invoice. Notice that the Payment Amount field automatically updates.

 

4. In the Main Fields > select Account bullet > this will show the dropdown list of accounts to choose from. Select the Bad Debt Expense account from the list.

 

Note: If the account is not available to be selected, the option to Expand Account Lists is not enabled. This can be enabled under Setup > Accounting > Accounting Preferences > General tab > General Ledger portlet > Expand Account Lists checkbox has to checked. 

 

5. Enter all other mandatory fields.

 

Note: In the Payment Method tab, make sure that there are no credit card details entered or the Charge Credit Card box is disabled since no charge is being made to the card.

 

6. Click the Save button.