To write off a customer invoice as a bad debt, first ensure that the 'Bad Debts' nominal account is flagged for viewing within your Sales transactions screens:
Go to Setup > Show/ Hide Nominal Accounts:
- Select 'Bad Debts' from the drop down list
- Tick to flag the account for viewing in 'Sales' (if not already done so)
- Click 'Update'
Go to Sales > Batch Entry:
- Enter relevant reference, date and choose the customer (also enter a narrative if required)
- Choose “Bad Debts” as the Nominal Account
- Enter the VAT inclusive amount of the invoice as a MINUS and choose the VAT rate that was applied to the original invoice.