We wrote off a customer invoice as we weren't going to receive payment for it. I issued a Credit note against the customer invoice and allocated it against our "Write off bad debt" expense account, however the original customer invoice is still showing up as open. Can someone please let me know what i have done incorrectly?
Solved! Go to Solution.
I too am trying this step, however, when after I've entered the credit and then go to "receive payment", the credit is not listed on the page for me to match them up. I've followed all of the steps and tried numerous times. Does the customer being a sub account have anything to do with it?
Hello there, @Code4Fire.
Let me guide you in writing off your customer's unpaid invoice.
First, you'd want to create a bad debt expense account and bad debt service item. Here's how:
Then, create an item for the bad debt.
Once completed, make sure to use the Bad Debt item in creating your credit memo.
Now, you can use it in paying your customer's outstanding invoice.
Always feel free to leave a comment below if you have other questions or concerns. I'm always here to help.