Let’s get this fixed, @LThibx.
I can see the impact of unpaid transactions on your financial reporting. We can record it as bad debt and write it off. This ensures your accounts receivable and net income stay up-to-date.
Before recording a bad debt, you’ll want to create an expense account to track that transaction. By doing so, you can use the Discounts and Credits option within QuickBooks to record the debt while keeping the debt organized in a separate register for tax purposes. Here’s how:
- Click the Lists menu and select Chart of Accounts.
- Hit the + (plus) button below to add a new account.
- Choose Expense as the account type.
- You can enter Bad Debt in the Name field.
- Click OK.
Once done, we can start over to close out the unpaid invoice in the program. Here are the steps below:
- Go to the Customers menu and select Receive Payments.
- Enter the name of the customer in the Received from field.
- For the Payment amount, enter $0.00.
- Click Discounts and credits.
- In the Amount of Discount field, enter the amount you'd like to write off.
- For Discount Account, select the bad debt account, and select Done.
- Click Save and Close.
After these processes, you can check your customer open balance by running the Accounts Receivable Aging Detail report. You can also use the customize feature in QuickBooks. It allows you to set preferences for how information is organized or displayed. Just follow these steps:
- Select the Reports menu.
- Go to Customers & Receivables, then click A/R Aging Detail.
By following these instructions, the outstanding event will be settled, Lonnie. Let me know if you have other concerns. I’ll get back to you as soon as I can. Keep safe.
