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Rachael5
Level 1

Write Off customer and supplier outstanding amounts - cash basis

I am working on a Cash Basis Online and I want to write off some amounts on both customer and supplier accounts.

How do I do this correctly, without creating VAT inconsistencies?

Solved
Best answer December 19, 2019

Accepted Solutions
GeorgiaC
QuickBooks Team

Write Off customer and supplier outstanding amounts - cash basis

Hello Rachael5,

 

As the transactions are on cash basis and the VAT element is not claimed until the transaction is closed you can either delete the transaction or follow the options below. 

 

You can follow our Community Guide which covers how to write off bad debt for your customers in QuickBooks Online. You can either change the VAT on the invoice to No VAT or put the same VAT code on the credit note to counter the VAT. 

 

To write of the supplier balance, create a Supplier Credit transaction to a write off expense account, and again either apply the same vat code to counter out the VAT or change the bill to No VAT before applying.

 

Thanks 

 

 

 

 

View solution in original post

2 REPLIES 2
GeorgiaC
QuickBooks Team

Write Off customer and supplier outstanding amounts - cash basis

Hello Rachael5,

 

As the transactions are on cash basis and the VAT element is not claimed until the transaction is closed you can either delete the transaction or follow the options below. 

 

You can follow our Community Guide which covers how to write off bad debt for your customers in QuickBooks Online. You can either change the VAT on the invoice to No VAT or put the same VAT code on the credit note to counter the VAT. 

 

To write of the supplier balance, create a Supplier Credit transaction to a write off expense account, and again either apply the same vat code to counter out the VAT or change the bill to No VAT before applying.

 

Thanks 

 

 

 

 

Rachael5
Level 1

Write Off customer and supplier outstanding amounts - cash basis

Thanks so much.

After much deliberation, I had come to that conclusion myself ie raise credits to match the invoices Vat-wise.  Great to have confirmation. Thx

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