Write off customer small balances

Hi kv04,

Thanks for reaching out here.  Providing your customers with accurate statements is essential.  QuickBooks Online enables you to write off outstanding amounts, so your books are aligned.  I'd be happy to assist!

It's important that payments are received correctly to ensure invoices are paid in full.  I suggest reviewing affected invoices and their associated payments, for any differences causing the outstanding amounts.  If you don't see a probable cause for these amounts, you can write them off by following this detailed guide.

To review the customer payments, follow these steps;

1. From the left menu, open Sales and then Customers

2. Select the customer name

3. Click on Filter and use the ▼ dropdown menu to select Money Received

4. Review the invoices, the Original amount, Open balance and Payment

5. You can edit the Payment here, or select the invoice to edit the form

6. Hit Save and close

Should you require additional assistance, please don't hesitate to contact us outside of Community.  We'd love the opportunity to work with you directly and ensure you're able to accomplish your QuickBooks goals as soon as possible!

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Feel free to reach out again with other questions.  We're always glad to help!

Thanks. But there are overpayment items. How do you I clear those off?

Hi kv04,

QuickBooks Online provides two options for handling over payments.  You can choose whether to use the credit toward another invoice, provide a customer refund, or enter it as a tip.  Here's a helpful guide, so you can choose the best fit for your business.  I hope this helps!

Doesn't work.  surprise surprise

Hi accounting@exhib,

Thanks for joining us here.  When invoices remain unpaid, QuickBooks Online provides the option to write them off as bad debt.  This is will ensure your accounts are aligned with the net income.  

First you'll need to create an account for the bad debt by following these steps:

1. Open your Settings ⚙ and select Chart of accounts

2. Click New 

3. For the Account Type, use the ▼ dropdown menu and, select Expenses

4. In the Detail Type, choose Bad debts

5. Hit Save and Close

Next, you'll need to create an item for the bad debt.  Here's how:
 

1. From your Settings ⚙, open Products & services 

2. Select New, then Non-inventory

3. Ener a Name, such as “Bad debt”

4. From the Income account ▼ dropdown menu, select Bad debts

5. Click on Save and Close

Now you're ready to create a credit memo, that will be applied to the customer invoice.

1. Select + New and choose Credit memo

2. Choose the customer from the list

3. In the Product/Service section, select Bad debts

4. Enter the Amount you want to write off

5. In the Message displayed on statement box, enter “Bad Debt”

6. Select Save and Close

Let's finish up by applying the credit memo to the invoice;
 

1. Select + New, then Receive payment

2. From the Customer ▼ dropdown menu, select the appropriate customer

3. From the Outstanding Transactions section, select the invoice

4. Select the credit memo, from the Credits section

5. Save and Close

The uncollected amount will be visible on your Profit and Loss report under the Bad Debts expense account.

Should you require additional assistance, please don't hesitate to contact us, outside of Community.  It would be our pleasure to work with you directly and ensure you're able to accomplish your QuickBooks goals as soon as possible!

Feel free to reach out with other questions.  We would be glad to assist!