How to write-off old partially paid invoices in Cash Accounting in QBO?

Hello, @AKS27.

Writing off old partially paid invoices in QuickBooks Online (QBO) while using the Cash Accounting method involves a few straightforward steps. I'm here to help you how.

To begin with, @kabel1657 has a point and I appreciate you for sharing that information,

Moreover, you can write off those older partially paid invoices without affecting your profit and loss reports. Here's how:

1. Go to the Gear icon and select Products & services.
2. At the upper right, select New, and then Non-inventory.
3. In the Name field, enter “Bad debts.”
4. From the Income account dropdown, select Bad debts.
5. Click the Save and Close.

Then, you can create a credit memo for the bad debt. Here's how:

1. Click the + New.
2. Select Credit memo.
3. Choose the customer from the Customer ▼ dropdown.
4. In the Product/Service section, select Bad debts.
5. Enter the amount you want to write off in the Amount column,
6. In the Message displayed on statement box, enter “Bad Debt.”
7. Click the Save and Close.

Once done, you can start applying the credit memo to the invoice. Here's how:

1. Click on + New.
2. Under Customers, select Receive payment.
3. From the Customer ▼ dropdown, select the appropriate customer.
4. In the Outstanding Transactions section, select the Invoice.
5. From the Credits section, select the Credit memo.
6. Click Save and Close.

Furthermore, you can run report and customize your data in QuickBooks for better financial tracking.

If you have any further questions about managing your invoices in QBO, please don’t hesitate to reach out. We're here to help you anytime.