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Judi
Level 2

Removing an item from an invoice

Most of our income comes from Insurance payments for repairs done. We have an invoice that the insurance company paid for most of the invoice, but paid part of the money directly to the customer & our customer is not going to pay us. I need to remove this item from that invoice, but it is in a prior reporting period, so the sales tax return for that period has already been completed. How should I handle this?

Solved
Best answer January 31, 2020

Best Answers
AlexV
QuickBooks Team

Removing an item from an invoice

You don't have to remove the item from the invoice, Judi.

 

We can write off unpaid invoices and declare them as bad debt. The first thing we need to do is to create an expense account where we'll track the bad debt.

  1. Go to the Lists menu and select Chart of Accounts.
  2. From the Account drop-down, select New.
  3. Choose Expense, then Continue.
  4. Enter an account name, then click Save and Close.

Once done, we can record the bad debt.

  1. From the Customers menu, select Receive Payments.
  2. Select the customer's name in the Received from drop-down.
  3. Enter $0 in the Payment amount, then click Discounts and credits button.
  4. In the Amount of Discount field, enter the amount you want to write off.
  5. Choose the bad debt expense account you've created as the Discount Account.
  6. Click Save and Close.

You can pull up the Profit and Loss report to check the bad debt account. 

 

Shoot me a reply if you need anything else. I'll be here to help.

View solution in original post

1 Comment
AlexV
QuickBooks Team

Removing an item from an invoice

You don't have to remove the item from the invoice, Judi.

 

We can write off unpaid invoices and declare them as bad debt. The first thing we need to do is to create an expense account where we'll track the bad debt.

  1. Go to the Lists menu and select Chart of Accounts.
  2. From the Account drop-down, select New.
  3. Choose Expense, then Continue.
  4. Enter an account name, then click Save and Close.

Once done, we can record the bad debt.

  1. From the Customers menu, select Receive Payments.
  2. Select the customer's name in the Received from drop-down.
  3. Enter $0 in the Payment amount, then click Discounts and credits button.
  4. In the Amount of Discount field, enter the amount you want to write off.
  5. Choose the bad debt expense account you've created as the Discount Account.
  6. Click Save and Close.

You can pull up the Profit and Loss report to check the bad debt account. 

 

Shoot me a reply if you need anything else. I'll be here to help.

View solution in original post

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