Deal with bad debt
Bad debt is money you’re owed by a customer that you can’t recover, such as outstanding amounts on invoices or companies that have gone into liquidation. It is important to write off any bad debt to keep your accounts in order.
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Go to Sales invoices (take me there in the app), then select the required invoice.
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From the Payments section, select Refund.
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Select Write off as bad debt then select the bad debts code. We automatically set up a bad debts code for you and if you’re unsure you should use this.
- Select Write off. A credit note is created for the negative amount from the original invoice that you are writing off and the original invoice is marked as paid.
- If you're writing off part of the invoice, select Edit on the credit note and enter the net amount your are writing off. Edit the applicable VAT amount to ensure your VAT returns are correct.