Bad Debts

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.

• Post entry