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.
Used your WRITE OFF instructions. Worked fine. Big thanks!
ReplyDeleteHelp. My email is repair.totaltool@gmail.com
ReplyDeleteI need to adjust invoices of bad debts. We have paid sales tax on these invoices.
1. Set up Bad Debt Exepnse account - DONE
2. Do I link the Item Acct to the sales tax payable acct?
Im stumped on number 4 here above
My sales tax payable acct is 2200
My bad debt is 6115
Now what? If I issue a credit memo to clear the invoice; How do I set up so it deducts from what I paid to the state of georgia months ago on these bad debt invoices?