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Good to see you here, nigel3.
I've got some steps on how you can write off the invoices.
First, you'll need to create a bad debt expense account in the Chart of Accounts. Then, add a bad debt item by following these steps:
- Click the Gear icon located in the upper right-hand corner.
- Under Lists, click Products and Services.
- Select New, and then choose Non-inventory.
- Enter “Bad debts" in the Name field.
- Select the bad debts account we created from the Income account drop-down menu.
- Click Save and Close.
Once done, our next step is to create a credit note for the bad debt. Then, apply the credit note to the invoice by following these steps:
- Click the Create (+) icon, and select Receive Payment under Customers.
- Select the customer's name from the Customer drop-down menu.
- Select the invoice from the Outstanding Transactions section, and put a check mark on the credit note that shows under Credits.
- Click Save and Close.
Here's a sample screenshot for reference:
Finally, go to the Chart of Accounts page and run a report for the bad debt account.
You can open this article for the detailed steps: Write off bad debt.
I'm always around if you need more help with QuickBooks Online. Thanks.
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