|Note: The following information applies only to QuickBooks Accountant and QuickBooks Enterprise Solutions.
Use this tool to write off a group of invoices. QuickBooks creates a credit memo for each invoice you write off. It also adds a memo about the write-off to the invoice and the credit memo.
How to set up a write off item
- Go to the Write Off Item drop-down arrow and select Add new.
- In the New Item window, leave Type set to Other Charge.
- In the Item Name/Number field, enter a name such as "bad debt" or "write off."
- Leave the Amount or % field set to zero.
- Leave the Tax Code field set to Tax. Don't worry if the sale was originally nontaxable. QuickBooks only reverses tax on taxable sales.
- Select the Account drop-down arrow and select the bad debt expense account.
- Select OK.
Use the Write Off Invoices tool
- Open the Write Off Invoices window from the Client Data Review by choosing Accountant > Client Data Review > Client Data Review. Or to open the window directly, choose Accountant > Client Data Review > Write Off Invoices.
- Set criteria for the invoices you want to write off. Use the fields at the top of the window to filter the list of open invoices.
- In the checkmark column, select the invoices to write off.
- At the bottom of the window, select the write off item. How do you set up a write off item?
- Change the Write Off Date if necessary.
- (Optional) If you track classes, go to the Class drop-down arrow and select the appropriate class.
- Click Preview & Write Off to see the list of the invoices you're writing off. You still have the option to cancel.
- When you're ready to write off the invoices, select Write Off.