outstanding invoices

Hi there,  bal15. 

I'm here to share some insights about writing off unpaid invoices in QuickBooks Online (QBO)  . 

Unpaid invoices have no impact on cash reporting. You can record the uncollectible amount by writing off bad debt. 

First, review other invoices or receivables that should be considered bad debt using the Accounts Receivable Aging Detail report. Here's how:

1. Click the Reports tab.
2. Enter and select the Accounts Receivable Aging Detail report.
3. Check which outstanding accounts receivable should be written off.

Secondly, create a bad debt expense account.

1. From the Accounting tab, select Chart of accounts.
2. Click the New tab.
3. From the Account Type field, select Expenses.
4. Select Bad debts on the Detail Type.
5. You can enter Bad debts as its Name.
6. Click Save and Close.

Then, create a bad debt item:

1. Select Products and services from the Sales tab.
2. Select New, and then Non-inventory.
3. In the Name field, enter Bad debts.
4. From the Income account dropdown, select Bad debts.
5. Click Save and Close.

From there, you're good to create a credit memo and apply it to the invoices. I've added this article for the detailed steps: Create a credit memo for the bad debt.

If you want to run and personalize your report to show only the information you need, you can read this resource for future reference: Customize reports in QuickBooks Online.

Leave a reply below if you have any other concerns about managing your invoices in QBO. I'm just a few clicks away to help. Have a great day ahead. 

@bal15 

Personal preference but I like to change the amount to $0 and make a note on the invoice stating the unpaid amount.