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usernatasha
Level 3

How to close invoice with small balance left?

My customer has short paid one invoice for $0.91, so how can I close off that invoice not leaving any balance?
Solved
Best answer March 05, 2021

Best Answers
KlentB
Moderator

How to close invoice with small balance left?

I can help you with that, usernatasha.

 

You can write off bad debt for the remaining balance. This way, you'll be able to close the open invoice and zero out the $0.91 customer balance. I'll show you how.

 

First, you'll have to create an expense account for bad debts:
 

  1. Select Accounting from the sidebar menu, then go to Chart of Accounts.
  2. Click New to create a new account.
  3. From the Account Type drop-down menu, select Expenses.
  4. From the Detail Type dropdown menu, choose Bad debts.
  5. In the Name field, enter “Bad debts.”
  6. Hit Save and Close.

Then, create a non-inventory item that will hold the bad debt:
 

  1. Select Sales from the sidebar menu.
  2. Go to the Products and Services tab.
  3. Click New, and then choose Non-inventory.
  4. In the Name field, enter “Bad debts.”
  5. From the Income account drop-down, select Bad debts.
  6. Hit Save and Close.

Once done, you'll need to create a credit memo and apply it to the invoice you want to close. The steps are highlighted in the Steps 4-5 section of this article: Write off bad debt. It also contains the procedures on how to run reports for the uncollectible receivables.

 

In addition, I've attached a link that will help you manage your invoice, sales receipt, and other sales forms in QuickBooks: Sales transactions.

 

Do you have any other questions in mind? Feel free to post them in the comment section. I'll be more than happy to help you again.

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4 Comments 4
KlentB
Moderator

How to close invoice with small balance left?

I can help you with that, usernatasha.

 

You can write off bad debt for the remaining balance. This way, you'll be able to close the open invoice and zero out the $0.91 customer balance. I'll show you how.

 

First, you'll have to create an expense account for bad debts:
 

  1. Select Accounting from the sidebar menu, then go to Chart of Accounts.
  2. Click New to create a new account.
  3. From the Account Type drop-down menu, select Expenses.
  4. From the Detail Type dropdown menu, choose Bad debts.
  5. In the Name field, enter “Bad debts.”
  6. Hit Save and Close.

Then, create a non-inventory item that will hold the bad debt:
 

  1. Select Sales from the sidebar menu.
  2. Go to the Products and Services tab.
  3. Click New, and then choose Non-inventory.
  4. In the Name field, enter “Bad debts.”
  5. From the Income account drop-down, select Bad debts.
  6. Hit Save and Close.

Once done, you'll need to create a credit memo and apply it to the invoice you want to close. The steps are highlighted in the Steps 4-5 section of this article: Write off bad debt. It also contains the procedures on how to run reports for the uncollectible receivables.

 

In addition, I've attached a link that will help you manage your invoice, sales receipt, and other sales forms in QuickBooks: Sales transactions.

 

Do you have any other questions in mind? Feel free to post them in the comment section. I'll be more than happy to help you again.

usernatasha
Level 3

How to close invoice with small balance left?

Thank you very much!

TJMc1
Level 1

How to close invoice with small balance left?

I am trying to do this in QB Mac Desktop and it doesnt' work.  I've followed the directions you posted and when I try to attach the credit memo to the invoice, QB will not allow that to happen.  It keeps wanting to pay the invoice with money.  Interestingly, I was able to do this successfully a couple of years ago with a different customer.  I'm wondering if there's been a change with the updates in the program...

Mark_R
QuickBooks Team

How to close invoice with small balance left?

Hello there, @TJMc1.

 

I want to make sure you can link the credit memo to an invoice so you can write off the remaining balance of the invoice as bad debt. 

 

Before we start, did you receive a specific error when trying to link the credit memo to the invoice? Any additional information would be greatly appreciated.

 

In the meantime, let's take two different steps to apply a credit memo to a specific invoice in QuickBooks for Mac. Here's how:

 

  1. Select the Company and Transaction Center and click on Credit Memos.
  2. Choose a credit memo from the list on the left panel.
  3. Make sure that it has the correct Customer or Customer job applied.
  4. Click on the Use Credit drop-down.
  5. Select Apply to invoice.
  6. Choose which invoice you are going to apply. Then, click the box on the left side of the Date column.
  7. Confirm the transaction by clicking Done.

 

An alternative way is to use the Receive Payments option. Let me guide you how.

 

  1. On the dashboard, click on the Receive Payments icon.
  2. In the Customer Payment window, choose the customer on the Receive From box.
  3. Tick the box on the specific invoice, then select the Discount & Credits button.
  4. Check the credit that you are going to apply and click Done.
  5. Click Save and Close.

 

I'm adding this article for more guidance: Create and apply credit memos in QuickBooks for Mac.

 

Let me know how the steps go, @TJMc1. I'll be here to provide further assistance.

 

You may also want to check out our QuickBooks Desktop Mac User Guide. This contains details to help you efficiently manage your transactions using QuickBooks Desktop for Mac.

 

Have a good one!

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