Writing Off Bad-Debts in Deadly Digits:

Legacy KB ID: 5728

Question

How do I write off my bad debts in Deadly Digits? I have a bunch of unpaid invoices that I need to clear out as the debtor are no longer trading or in business.

Applies to:

Deadly Digits with invoicing modules.

Answer

Disclaimer:

The contents of this article are for general guidance only and you should seek professional advice relating to your own specific circumstances before acting

While there are many ways to write-off the bad-debts, you should speak to your accountant for the one that suits you best.

Below is one way that we recommend you can write off the bad debts in Deadly Digits.

1. Create an expense account ‘Bad debt write off’

2. Create a customer adjustment note, for the contact, for the amount you are writing off. Leave the CAN as a credit to the contacts.

3. Go to the invoice you are writing off and receive the payment with the credit note you just created.

4. Once done, check your ‘Aged Debtors’ report. The contact or the invoice should no longer appear in it.

Detailed steps.

Step 1: Create an expense account ‘Bad debt write off’

Go to the Chart of Accounts area and create the new expense account called Bad debts write off. Alternatively, you can use your own choice of expense account.

Step 2: Create a customer adjustment note, for the contact, for the amount you are writing off. Leave the CAN as a credit to the contacts

1. Go to Money in and Customer adjustment notes (CAN).

2. Select the add button to enter new CAN.

3. Select the contact under customer and enter any other necessary details.

4. Select the bad debt write off account under account column or the account of your choice.

5. Enter the amount you are writing off.

6. Select the appropriate tax codes, if applicable. Save and close.

Step 3: Go to the invoice you are writing off and receive the payment with the credit note you just created.

1. Go to the invoices and select open the invoice, that you are writing off.

2. Select the Receive Payment button to receive the payment. You will be allocating the CAN that you recorded earlier in step 2.

3. Receive payment section will now appear towards the bottom of the invoice. You will notice the Apply available transactions function is active with the amount that you have recorded for CAN.

If you have had recorded more than one CAN, you will see them, upon dropping the drop-down box of Transactions to apply.

4. Select the CAN. Amount to use field will auto adjust with the CAN balance.

5. Select the Save button to apply the payment.

Step 4: Once done, check your ‘Aged Debtors’ report. The contact or the invoice should no longer appear in it. 

The CAN is now applied to the outstanding invoice. The invoice will now appear as Paid.

If you check the Aged debtor report now, those outstanding invoice will no longer appear on it, as it has now been paid off or written off.

How did we do?

Importing PayPal transactions and matching with my records from PayPal payment services.

"An error occurred while processing your request or the page you last visited does not exist anymore" when create/view a TPAR report

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