What to do with an invoice that won't be paid?

You can write them off since you will not be receiving payments for the initial invoices, Kinsm.

However, we recommend reaching out to your account to confirm if that's the best way to handle them.

Then, follow this series of steps on how to do it in QuickBooks Online.

First, create a "bad debts" expense account.  

1. Go to your Chart of accounts and click New in the upper-right-hand corner.
2. Select Expenses for Account Type, then choose Bad debts for Detail Type.
3. Type in “Bad debts” in the Name field.
4. Click Save and Close.

Second, create a bad debt item. Here's how:

1. Go to the Gear icon and choose Products and services.
2. Click New and select Non-inventory.
3. Type in “Bad debts” in the Name field.
4. Choose Bad debts in the drop-down list for Income account.
5. Check the I sell this product/service to my customers checkbox.
6. Click Save and close.

Third, create a credit memo for the bad debt. Just make sure to select the bad debt item in the Product/Service section.

Lastly, apply the credit memo to the invoice in the Receive payment screen to close it out. Check out these articles for additional guidance: Create and apply credit memos or delayed credits in QuickBooks Online.

Just in case you need additional help with bookkeeping or any other tasks, you can tap our QuickBooks Live Expert Assisted Team for personalized support.

You can always drop by and ask follow-up questions if you need anything else.