Step 1: Create a Bad Debt Expenses Account in Chart

• Click on the Chart toolbar icon
  
• Click on the Expenses tab
  
• Click Add
  

For example:

 Step 2: Invoice Details

• Click on the Debtors toolbar icon
  
• Click on the Invoices tab
  
• Edit the invoice that is to be written off as a bad debt and make note of the details. Note: Amount of invoice still unpaid
  
• Cancel / Exit out of invoice

For example:

Step 3: Create Credit Note

1. Click Add
   
2. Customer - e.g. Jack Smith (as above)
   
3. Date - e.g. today's date (not the date of the original invoice)
   
4. Form - select CREDIT NOTE from the drop-down list
   
5. Ref. - e.g. CR9
   
6. Detail - Write Off Bad Debt (Inv# 9) - Harvesting 005
   
7. Account - 106 Bad Debt Expenses (the account you created in Step 1)
   
8. Enterprise - (if applicable)
   
9. Quantity, Rate/Price, Amount - enter these exactly the same as original invoice but entered as a negative
   
10. Click OK to save
    

1. Click on the Cashbook toolbar icon
   
2. Click Add
   
3. Choose Type - Receipt (deposit)
   
4. Click on the Invoices button
   
5. Tick the original invoice and the matching credit note in the P column
   
6. Click OK to return to the Add Transactions window
   

Step 5: Save

• Click OK in the Add Transactions window to save
  

 

CP Article ID 4320