How do I record writing off accounts receivable amounts for partially paid invoices from customers?

Welcome to the Community, armsbv.

Partially paid invoices can be recorded in QuickBooks Online as a bad debt and written off when they become uncollectible. This guarantees that your net income and accounts receivable are always current. I'll walk you through the steps one by one.

Step 1: Create a bad debts expense account:

1. Go to Settings ⚙ and select Chart of Accounts.
2. At the upper right, click New to create a new account.
3. From the Account Type ▼ dropdown, choose Expenses.
4. From the Detail Type ▼ dropdown, select Bad Debts.
5. Hit Save and Close.

Step 2: Create a bad debt item:

1. Go to Settings ⚙ and select Products and Services.
2. At the upper right, click New, and then Non-inventory.
3. In the Name field, enter “Bad debts.”
4. From the Income account ▼ dropdown, choose Bad Debts.
5. Hit Save and Close.

Step 3: Create a credit note for the bad debt:

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

Step 4: Apply the credit note to the invoice:

1. Click + New.
2. Under Customers, select Receive payment.
3. From the Customer ▼ dropdown, select the appropriate customer.
4. From the Outstanding Transactions section, select the invoice.
5. From the Credits section, click the credit note.
6. Hit Save and Close.

The uncollected receivables will display on the Profit and Loss report under the Bad Debts expense account. For more detailed information, check out this resource: Write off bad debt in QuickBooks Online.

I've also included the following article if you need guidance on refunding customer payment for future use: Record a customer refund or supplier refund in QuickBooks Online.

You're welcome to post again if you require additional help with accounts receivable. We're always here to support you.