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gloriadeb204
April 9, 2021
Solved

bad debt write off

  • April 9, 2021
  • 2 replies
  • 19 views

I wrote off a bad debt in ihe GJ as shown.

When I run an aging report, it shows up as a positive and a negative. How do I get it to not show up at all on an aging report? 

 

Best answer by AlexV

Hello gloriadeb204!

 

The reason why it shows positive and negative lines is because of the method you used, the journal entry. Let me show you how to properly write it off as bad debt.

 

Based on the screenshot, I'll assume you already have an expense account to track the bad debt. If so, proceed to these steps:

  1. From the Customers menu, select Receive Payments.
  2. Select customer in the Received from drop-down, and enter $0.00 in the Payment amount.
  3. Click the Discounts and credits button. 
  4. On the pop-up, enter the amount you'd like to write off in the Amount of Discount field.
  5. For the Discount Account, select the bad debt expense account.
  6. Tap Done, then Save & Close.

 

Once done, pull up the A/R Aging report again to verify.

 

Need more references on how to manage your business in QuickBooks Desktop? Check this link: QBDT All Articles.

 

Leave a reply below if you more of my help. I'll be here!

2 replies

AlexV
AlexVAnswer
Level 10
April 9, 2021

Hello gloriadeb204!

 

The reason why it shows positive and negative lines is because of the method you used, the journal entry. Let me show you how to properly write it off as bad debt.

 

Based on the screenshot, I'll assume you already have an expense account to track the bad debt. If so, proceed to these steps:

  1. From the Customers menu, select Receive Payments.
  2. Select customer in the Received from drop-down, and enter $0.00 in the Payment amount.
  3. Click the Discounts and credits button. 
  4. On the pop-up, enter the amount you'd like to write off in the Amount of Discount field.
  5. For the Discount Account, select the bad debt expense account.
  6. Tap Done, then Save & Close.

 

Once done, pull up the A/R Aging report again to verify.

 

Need more references on how to manage your business in QuickBooks Desktop? Check this link: QBDT All Articles.

 

Leave a reply below if you more of my help. I'll be here!

    J
    JudyC61
    December 30, 2021

    I have followed the instructions, which indicates no dollar entry on the "receive payments" dialog box. In the "discounts and credit" box, I enter the amount to write off, and immediately met with another dialog box that says "warning - the discount amount cannot be more than the Amt. To Pay".  Now what? The customer in question has 2 dozen invoices for the total I need to write off. Am I to do this exercise 24 times?

    C
    ChristieAnn 11
    Level 9
    December 30, 2021

    Hi there, JudyC61.

     

    Thank you for visiting the QuickBooks Community. I'll provide some details you'll be able to sort the error message you received. Then, ensure that you can write off transactions.

     

    When choosing invoices to be paid on the Receive Payments screen and the total of all invoices exceeds the figure in the Payment amount field, you'll get the message that indicates "You cannot apply an amount greater than the total payments plus any existing credits when creating a payment in QuickBooks".

     

    To start with and to fix the issue, I recommend applying a discount or credit to one or more invoices. 

     

    Here's how:

     

    1. Choose the invoice line without checking it (highlight the invoice by clicking the date or number field).
    2. Select the Discount and Credits button. Then, to apply a discount:
      1. Click the Discount tab.(Optional) Change the amount of the discount.
      2. Note: QuickBooks calculates a suggested discount amount based on your payment terms with the customer and the payment date. You can enter any discount amount you choose; you don't have to use the suggested amount. However, the amount of the discount can't be higher than the original invoice.
      3. Enter the name of the expense account you use to track discounts. (Example: Discount Expense).
      4. Click Done to record the discount.
    3. To apply for a credit:
      1. Click the Credits tab.
      2. Put a checkmark on the credit you want to apply.
      3. If you do not want to use the entire credit or if the credit amount is more than the customer balance, change the amount under the Amt to Use column.
      4. Click Done to record the credit.
    4. Select the Save & Close button.

     

    If the issue persists, you can change which invoices are selected to be paid. You can open this article to see the steps on how to perform the process and follow solution two: Warning: You cannot apply an amount greater than the total payments plus any existing credits.

     

    Lastly, you may open this article to view different ways on how you can track customer transactions in QuickBooks Desktop: Get started with customer transaction workflows in QuickBooks Desktop.

     

    Let me know if you still have questions or concerns about achieving a write-off in QuickBooks. I'll be around for you. Take care and have a good one.

    BigRedConsulting
    BigRedConsulting
    Level 15
    April 9, 2021

    This happens when the journal isn't linked to the invoice it's writing down. Same thing will happen if you record a Payment received transaction and don't apply it to invoices.

    To complete the transaction, open the Receive Payments window, select the customer, and then apply the outstanding credit to the open invoice(s).

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