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L
lmoran
October 22, 2020
Question

Bad debt recovery.

  • October 22, 2020
  • 3 replies
  • 29 views

I wrote off bad debt from a customer last year on several invoices.  This year, after the books have been closed, they partially paid for 2 of the written off invoices.  How do I record the recovered income?

3 replies

AlcaeusF
AlcaeusF
Level 14
October 22, 2020

Hi @lmoran,

 

Welcome to the Community. Let me assist you with recording a recovered income in QuickBooks Online.

 

You can adjust the closing date to record the income via invoice or sales receipt. Please note that only admins can make changes to the information.

 

To edit the closing date, here's how:

 

  1. Go to Settings ⚙ and then select Accounts and Settings.
  2. Select the Advanced tab.
  3. Select Edit ✎ in the Accounting section.
  4. Change the closing date. Note: To change your password, just enter a new password and confirm it.
  5. Select Save and then Done.

Also, I suggest seeking expert advice from an accountant to ensure both previous and current books are intact and accurate. They will be able to provide detailed instructions about the necessary adjustments you need to make in QuickBooks.

 

For additional reference, you can use the following article to run a bad debts report in QuickBooks: Write off bad debt in QuickBooks Online.

 

Leave a comment below if you have other concerns. The Community and I will be around to help you.

L
lmoranAuthor
October 22, 2020

Sorry, but this did not answer my question at all.  

AlcaeusF
AlcaeusF
Level 14
October 22, 2020

Thanks for getting back to us, @lmoran.

 

Since those invoices were already written off and the books have been closed for that specific period, there are two ways that I can think of to record the payment.

 

The first one is to adjust the closing date to reverse the write off. You can follow the steps shared by my colleague Alcaeus above for further guidance.

 

The second one is to treat this as a new transaction. All you need to do is to recreate the invoices so you can link the payment. Here's how:

 

  1. In QuickBooks Online (QBO), go to the + New option at the top left to create an Invoice. 
  2. Enter the necessary information.
  3. Hit Save and close.

 

Once done, here's how to apply the payment:

 

  1. Go back to the + New option and select Receive payment. 
  2. Choose the customer's name in the drop-down.
  3. In the Outstanding Transactions section, place a checkmark on the invoices.
  4. Click Save and close to complete.

 

In addition, I still suggest consulting your accountant for further assistance with the process to ensure your books are accurate for your business.

 

To learn more about managing customer payments in QBO, consider checking out this article: Record invoice payments.

 

Reach out to me in the comment section below if you have any other questions or concerns. I'll be more than willing to help. Have a good one!

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