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Hi, I have several customers with outstanding accounts that I know will not pay. What is the correct way to write off these accounts before I move to the new year? Thanks!
Hi Kate!
To make this entry, go into the Transaction Entry Screen. I like to keep the transaction type as a Withdrawal, and fill in the information as required. When you get to the Total, leave it at 0.00.
On the first line of the transaction, select type RP. Select the customer you are writing off invoices for. Put a checkmark in each invoice that you are writing off, and click on OK. You will get a message that the amount applied doesn't match - just click on Yes and move on.
If you have more than one customer that you need to write off invoices for, you will need to do an RP line for each.
Once your RP lines are completed, on the final line, select type EX. You will then balance the transaction to an account called Bad Debt Expense.
This should be a balanced transaction you can then record.
I hope this helps!