How do I remove items from the bad debt report? For some reason, several invoices show on my P

Let me share some insights about the item showing up on the bad debt report, userashleighmpritcha.

A bad debt item isn't a real item in QuickBooks. It was created as a placeholder for uncollectible sales. 

Also, you're seeing a zero balance since the invoice was already written off.  If you need to correct this, you'll want to delete the credit memo that was applied for the invoice.

Here's how to delete the credit memo:

1. From QuickBooks Online, navigate to the Sales tab.
2. Click on the Customers section.
3. Scroll down and find the customer whose Credit Note you'll be deleting, and click their name.
4. Find the transaction in the list below and click to open it. You can narrow the list based on date or transaction type by using the filter (funnel icon).
5. On the Credit Memo screen, click More at the bottom and select Delete.
6. The invoice will show up as open. 
   
   

I suggest consulting with your accountant if this is the right method for the sale. They can provide specific instructions so you books have accurate records.

Please check out this link to learn more about this: Write off bad debt in QuickBooks Online. It'll tell you more about the uncollectible receivable that appears on your Profit and Loss report under the Bad Debts expense account.

To know the user who sets up the item, you can use the Audit log section. This feature records the following:

• The date of any change to your books
• The name of the user who made the change
• The type of change or event
• The name of any customer or vendor related to the change
• Any original transaction date and amount.
  
  

To access it, here are the steps you can follow:

1. Sign into QuickBooks as the master admin to access the audit log.
2. Select Filter.
3. Use the fields on the Filter panel to choose the appropriate User, Date, or Events filter to narrow the results.
4. Click Apply.
   
   

I've added this video tutorials as your guide: https://youtu.be/x-GDCL0sjZ4.

If you don't have an accountant, you can find one near your place. Simply visit this link and look for a QuickBooks-certified ProAdvisor: https://quickbooks.intuit.com/find-an-accountant/.

Let me know if there's anything else you need by commenting below. I'm always glad to help if you need additional information about it.

Hi MaryLandT,

Thank you for the reply.

However, these invoices were never marked as bad debt. There is no "credit memo" under the customer's profile to delete. The payments applied to the invoice all have stripe tokens attached to them as they are credit card payments.

I'm not sure if this is something that's happening because the invoices are pulled through an integration.

After much digging around in the settings, I found the issue. Somehow, the product "sales" was connected to the bad debts expense account. Fixing that setting seems to have fixed the report.

That's awesome, userashleighmpritcha.

If you have other concerns, please don't hesitate to post again. I'll be around to help you with any QuickBooks concerns.

You can browse this link if you need to filter the details on the report: Customize reports in QuickBooks Online.

Thank you and have a wonderful day ahead!

Hi!

Will using delete option removing bad debt from credit memo (later paid by customers) hurt the transaction history? Will auditor still able to see when the bad debt was written, when it was reversed?

Good afternoon, @htao2013. 

Thanks for chiming in on this thread. Let me share some light on this subject. 

The auditor will be able to see any changes made through the Audit Log. This is a list of the history of all of your transactions. I recommend leaving the bad debt or writing it off. To be sure, I suggest consulting with your accountant and reviewing this guide: Write off bad debt in QuickBooks Online. 

Let me know if this helps. The Community is always here to have your back. Have a splendid day!