1. Create a New Account - - - - Go to lists>chart of accounts>click on account at the bottom and new>expense account called Write offs.
2. Go to lists>items> click on items at the bottom and new and create an other charge>name it Write offs and under account use the account you just created called write offs.
3. Go to Customers>create a credit memo > bring up the customer and under item enter write off and the amount, you will be asked to apply to an invoice and click ok. This will zero out your invoice.
4. If you have sales tax you have additional items to create depending upon how the sales tax is set up and how it is paid.
