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bookkeeperae
Level 1

Customer wants to pay account previously written off as bad debt. How can the original invoices be re-generated so that they don't say "PAID" stamped on them?

Also, when the payment is received, how is it recorded in QBs?
3 Comments
LeizylM
QuickBooks Team

Customer wants to pay account previously written off as bad debt. How can the original invoices be re-generated so that they don't say "PAID" stamped on them?

Glad to have you here in the Community, bookkeeperae. 

 

I'm here to guide you on how to record payments in  QuickBooks Online. 

 

Bad debt means a customer owes you money but you can't collect it. They have a debt with you, but you know you aren't going to get paid. You need to delete the bad debt that you created.

 

Here's how:

 

1. Open the Bad Debt that you created.

2. Click the hyperlink under Payment Status to open the transactions.

3. Select Delete.

4. Select Save and Close.

 

I've got you an article on how to write off bad debt in QuickBooks Online.

 

Keep your post coming if you need more help. Have a great day!

AnneB8
Level 2

Customer wants to pay account previously written off as bad debt. How can the original invoices be re-generated so that they don't say "PAID" stamped on them?

Hello,

I have a similar situation, but in my case, the customer had a credit balance for over a year.

Finally, in 2020, the company wrote the credit off to bad debt. Now, the customer wants a refund.  The customer was offered a discount for the amount of the credit, but would prefer a refund. 

What is the best way to handle this?

 

Thank you.

MaryJoyD
QuickBooks Team

Customer wants to pay account previously written off as bad debt. How can the original invoices be re-generated so that they don't say "PAID" stamped on them?

I can help you with recording a refund for the customer's credit balance, @AnneB8

 

You can write a check for the amount to be refunded and then a credit memo for the amount of the credit. Once done, process a receive payment by linking the check and the credit memo

 

To create a credit memo:

 

  1. Go to the + New button and select Credit memo.
  2. In the Customer dropdown, select the customer's name.
  3. Enter the credit memo details, such as the date and the amount.
  4. Click Save and close once you're done.

 

To write a check:

 

  1. Go back to the + New button and select Check
  2. Select the customer you want to refund from the Payee dropdown.
  3. From the Payment account dropdown, select the bank account where you deposited the overpayment.
  4. On the first line of the Category column, select Accounts Receivable.
  5. Enter how much you want to refund in the Amount field.
  6. Click on Save and close.

 

Now, link the refund to the customer's credit or overpayment:

 

  1. Go back to the + New button and click on Receive payment
  2. Select the same customer you used for the check. 
  3. Under the Outstanding Transaction section, select the checkbox for the check you've created and the credit memo under the Credits section. 
  4. Click Save and close once you're done. 

 

You can refer to the following article for more information to record a refund based on various scenarios to ensure your books are accurate: Record a customer refund in QuickBooks Online.

 

In case you'd like to send your customer a summary of their invoices, payments, credits, and balances. See the following article for detailed guidance: Create and send customer statements in QuickBooks Online.

 

I'll be here if you have any additional questions in recording your transactions or if you need anything else. Just let me know by leaving a reply below. Take care and have a great day!

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