Bad Debt Handling

It may be necessary at times to write off debts that cannot be recovered for one reason or another. Follow these steps to record bad debt. 

Precondition:

A credit account must exist to record Bad Debts. Refer to Chart of Accounts. 

Steps: 

1. Navigate to Menu > Operations > Credits. 
2. Click Add. 

3. Populate the credit.

4. Product is a required field before the Credit Account can be populated. Select Bad Debt as the Credit Account under Credit Lines. Click + Add Credit Line as needed. 

5. Toggle Taxable ON when applicable to include taxes on the product. Click the edit icon next to Tax and manually enter the amount. 

6. Select the Invoice(s) to apply the credit to. Adjust the dollar amounts when splitting the credit between more than 1 Invoice. 

7. Save when finished.