Access full CDR help from the QuickBooks Accountant Edition.
Specify the write off terms
Preview and Write-Off
If you write off an invoice for a cash-basis company, the income goes up as of the write-off date and is offset by the post to the write-off account. You may prefer to use a contra-income account instead of an expense account for the write-off account to avoid overstating cash basis income.
CDR creates a discount transaction, not a credit memo, to write off invoices. If sales tax is paid on an accrual basis, writing off invoices to either an expense or contra-income account does not reduce accrual basis taxable sales. To avoid an overstatement of sales tax payable, you can use a sales tax adjustment or a journal entry.