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jessica811
January 15, 2021
Question

write off invoice

  • January 15, 2021
  • 1 reply
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My client has 2 invoices in their A/R aging report that they say were paid but I cannot find a record of payment in QBO. Regardless of whether they were paid or not, I need to clear these out for year end reporting. Is the write off tool the correct method? They are not technically "bad debts" but the invoices need to go away. What are the repercussions in reporting of labeling these invoices "bad debts?"

1 reply

JoesemM
JoesemM
January 15, 2021

Welcome to the Community space, @jessica811.

 

Allow me to share some information on how clear the two invoices in the A/R aging report. To get started, may I ask if your client uses QuickBooks Payments? If so, we can check the Bank register and review the payments from there.

 

If the payment will show in the bank register, you'll have to apply them accordingly. However, if it didn't show, you'll have to create a bad debts expense account to make your A/R and net income stays up-to-date. Let me guide you how:

 

  1. Go to the Chart of Accounts and select New.
  2. Choose Expenses for the Account Type, and Bad Debts for the Detail Type.
  3. You can enter Bad Debt on the name field. Then, click Save and close.

Then, let's create a product/service for the bad debt.

  1. Select New on the Products and Services page.
  2. Choose Non-inventory. You can enter Bad Debt on the name field.
  3. Select the Bad Debt expense you created for the Income account.
  4. Clear the Is taxable checkbox. Then, click Save and close.

 

Then, proceed to Steps 4-6 in this article for additional information: Write off bad debt in QuickBooks Online.

 

Once done, you can now run the Accounts Receivable Aging report again. See this article, for more information: How to get your Aging Reports to match.

 

Here are some links that you can check out about memorizing and customizing reports in QuickBooks Online for reference:

 

 

The Community will always have your back if you need a hand with running your financial reports or any QBO related. Assistance is just one post away. Take care always. 

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