Can a fraudulent transaction be written off as a bad debt, or?

Thanks for dropping by the Community forum. I see you want to record a fraudulent transaction in QuickBooks Desktop. I'll share information and guidelines to help you successfully record this transaction.

When invoices you send in QuickBooks Desktop become uncollectible, you need to record them as a bad debt and write them off. Here's a step-by-step guide:

First, ensure you have an Expense Account for Bad Debt (which you've already created). Then, create an Expense/Check:

1. Go to the Vendors menu and select Enter Bills.
2. Choose the Vendor for whom you want to write off the bad debt.
3. Under the Items tab, add the original item with a negative quantity as well as the amount.
   
   
    
4. Under the Expenses tab, add the bad debt account with a positive amount.
   
   
    
5. Save the bill.

I'm adding these articles you can use in the future:

• Write off bad debt in QuickBooks Desktop. 
• Write off customer and vendor balances.

By following these steps, you can offset the items in the inventory you haven't received. If you have more questions about managing your transactions, post them here in the forum. I'll be sure to answer them ASAP! Have a great day ahead!

JamesAndrewM:

Thanks for trying to help, but I'm not convinced this is the correct solution.  

We don't track inventory at all, at any rate.

Best,

Rainflurry,

Thanks for the reply to this question.  I appreciate the clear cut solutions you always present here.

Best,

Victoriah