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Track bad debt

At the end of your fiscal year, follow these steps to track your bad debt so you can then write it off.

  1. Click the Customize Report button at the top of the report.

  2. In the Modify Report window, make sure both the From and To dates are the last day of your year.

  3. Review the report to ensure that everything looks accurate.

    The A/R Aging Detail report shows you invoices from customers that were still outstanding as of the last day of your year.

    You can QuickZoom (double-click) on any invoice in the report to go to the original transaction.

    This is an external expando
  4. Fix any duplicate invoices or any mistakes.

    For example, if you find two invoices listed for exactly the same amount and upon examination discover that you've entered two invoices by mistake, delete the second invoice—don't write if off as bad debt. Only write off invoices that are truly bad debt or items the customer refused or is unable to pay.

    • If customer payments are showing up on this report, there is an error somewhere that you need to solve that problem before writing off bad debt.

      The error is generally because the payment didn't get applied to an invoice. This would be the case if you see both a customer invoice and the customer payment listed on the report. To fix or clear both the payment and invoice from the report, double-click the customer payment listed on the report. When the Customer Payment window appears, find the "Invoices paid (with this payment) and those still outstanding" area and add a checkmark by the invoice this payment should be applied to.

    • If a customer payment is listed on the A/R Aging Detail Report and no invoices appear for that customer, you need to figure out why you received money from that customer and didn't enter an invoice first. You should enter an invoice for the customer and apply the payment to the invoice before proceeding.

  5. If your A/R Aging Detail report is clean, write off bad debt

    A clean A/R Aging Detail report shows a list of only what is or was outstanding at the end of your year.

See also

KB ID# H_V_BAD_DEBT_TRACKING
12/5/2016 12:28:18 AM
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