Writing Off Bad Debts
Once you have established that a debt will not be paid back, you will want to write off this bad debt.
- Open the Cash Receipts/Adjustment Entry screen.
- At the Customer code field, enter the customer code whose bad debt you are writing off.
- At the Transaction type field, enter the transaction code you use for bad debts.
- At the Reference # field, the software will assign the cash receipt/adjustment a reference number. Press Enter to accept this default. Otherwise, assign the cash receipt/adjustment a reference number of your choosing and press Enter.
- In the Transaction section, enter the date, and amount you are writing off, and then press Enter.
- The Cash Receipts/Adjustments Entry Selections window displays. Review the selections, make any necessary adjustments and click OK.
- At the Discount field in the line transaction portion of the screen, enter 0.
- At the Paid/adjusted field, enter the bad debt amount you are writing off, and then press Enter. This amount should coincide with the amount entered in the Amount field in the transaction portion of the screen. Click OK.
- Click the Listing button, and then click the Preview button. Verify that the bad debt cash receipt/adjustment and invoice balance(s) you entered are correct on the sample report.
- Once you have completed reviewing the report, click OK to return to the CashReceipts/AdjustmentsEntry screen.
- Click Update, and then click Preview to review the sample report.
- Click Continue to complete the update.