How to account for bad debts and write it off

Account for bad debts and write it off

01. Go to the accounting module from the main menu

02. Click on the invoices from the customer tab.

03. Select the invoice you need to account for bad debt from the invoices list

04. Once you opened the  invoice to be accounted for bad debt, click on Add credit note.

05. Now credit note  window will pop up, here update the relevant details

• Credit method: Partial Refund
• Reason: Bad Debt
• Reversal Date: You can select Specific or Journal Entry Date

06. And then click on Reverse

07. Once you clicked on reverse a draft credit note will be created 

08.Here in the draft credit note, change the account to Bad Debts Written Off

09. Then confirm the credit note

10.Once the credit note is confirmed, go to the reporting tab and select aged receivables.

11. In the aged receivables report find the customer and click on the drop down arrow and you will be able to see the record for the invoice and the bad debt write off.