We’ve just added a quick new feature that let’s you write-off an uncollectable amount owing from your customer. To write-off a customer receivable amount, simply do the following:
- From the Back-Office module, either edit the invoice (by clicking on invoice management on the left and searching for the invoice) OR click on “Customer Receivables” to get a list of invoices for which amounts are receivable and click ‘received’ next to the amount you wish to write-off.
- Add a customer payment (as you normally would do) by clicking on the “Add Payment” button.
- When the small payment window opens, select “Write-Off Amount” as the method of payment, enter the date and the amount to write-off. Click on the button to save it.
This will remove the invoice from the customer receivable list in the back-office, and also generates a journal entry (part of Journal Entry 001) in the month of the write-off, as follows:
Dr. Bad Debt Expense
Cr. Accounts Receivable – Customer
We hope this quick new feature will allow you to quickly write-off old customer amounts owing that you are certain will not be collectable.