In the Home window, click Customers & Sales on the navigation pane.
Click Sales Invoices.
From the list in
the Customer box, select the customer whose
debt will not be paid.
In the Invoice
Number box, enter the original number of the unpaid invoice, followed
by the letters "WRTOFF".
In the Amount
column, enter the amount owed as a negative number.
Click the list
button in the Account column to display
a list of accounts. Make sure the All Accounts
button is selected.
Choose the Bad Debts account and click Select.
If your accountant has set up the Allowance for Doubtful Accounts to deal
with bad debts, select this account from the list instead.
In the Tax
column, enter the tax code used in the original unpaid invoice.
To verify the transaction,
in the Report menu, select Display Sales Transaction
Detail.
If you are satisfied
with the entries, click Process.
Step 2: Offset both invoices
in the Receipts window
In the Home window,
click Customers & Sales on the navigation pane, click Receipts.
From the list in
the Received From box, select the same customer from
the above set of instructions. Both the original invoice and the one created
in the first set of instructions display automatically in the table.
In the Amount Received column, click to display both invoice amounts.
To verify the transaction,
in the Report menu, select Display Receipt Transaction
Detail. The debit and credit balances should be zero.
If you are satisfied
with the entries, click Process.
Note: Consult your accountant
if you want to place the taxes owed in a separate account.