Void, delete, or write off invoice

We can create a bad debt expense account for the initial invoice to ensure our financial records accurately reflect the amount expected to be collected, Kinsm.

A Bad Debt Expense account records amounts not expected to be collected. In your case, the $200 balance from the initial inspection, which will be waived with the new furnace, falls into this category. When invoices become uncollectible, record them as bad debt to keep your accounts receivable and net income accurate.

Start by reviewing your Accounts Receivable Aging Detail report for additional invoices that may need to be written off as bad debt. Here's how:

1. Go to the Reports menu.
2. In the search bar, type Accounts Receivable Aging Detail.
3. Identify which outstanding accounts receivable should be written off.

Second, make a bad debt expense account:

1. Go to the Transactions menu and choose Chart of Accounts.
2. Tap New in the upper right corner.
3. From the Account Type drop-down arrow, select Expenses.
4. Choose Bad Debts in the Detail Type drop-down menu.
5. Enter Bad debts in the Name field.
6. Hit Save and Close.

Third, create a bad debt item:

1. Go to the Gear icon and select Products and Services.
2. Tap New and then Non-inventory.
3. In the Name field, enter Bad debts.
4. From the Income account drop-down arrow, choose Bad Debts.
5. Click Save and Close.

Fourth, generate a credit memo for the bad debt:

1. Go to the +New button.
2. Under Customers, select Credit memo.
3. Choose the customer.
4. In the Product/Service section, select Bad Debts.
5. Enter the amount you want to write off.
6. Put Bad Debt in the Message displayed on statement box.
7. Select Save and Close.

After that, apply the credit memo to the invoice. I'll guide you on how:

1. Go to the + New button.
2. Under Customers, select Receive payment.
3. Select the appropriate customer.
4. From the Outstanding Transactions section, select the invoice.
5. Click the credit memo from the Credits section.
6. Tap Save and Close.

The uncollectible receivable now shows on your Profit and Loss report under the Bad Debts Expense account.

Additionally, I suggest categorizing transactions and reconciling your bank statements to maintain clear and accurate financial records, making it easier to manage your finances effectively.

Let me know if you need more help writing off invoices. As always, it'll be my pleasure to help you out again.