Bad Dept Write Off

Here is an easy way to setup your system to be able to write off bad debts at the end of the year. Since we usually just write off old Accounts Receivable balance to bad debts at the end of fiscal year, I thought I would share a quick and easy way to do this.
First, go into the General Ledger and click on Enter Accounts. In the lookup screen, search for your bad debt expense account. Write down this account number.

Now go to the Accounts Receivable module. Click on the Receipts option. On the left side of the screen click on the Add button to add a batch. Give this batch a description of Bad Debt/Write Offs. In the Default Cash Account box, type in the Bad Debt account number that you wrote down earlier. You must type it in and not use the lookup. The lookup will only show cash/bank accounts in it. Click OK. You now have a batch setup to enter your bad debt/write offs in.

Highlight the batch you just created and click add on the right to add an entry. 

Choose the customer and the job you are writing off. Enter the date you wish to write this invoice off as of. In the deposit reference and in the check number boxes enter WriteOff. Enter the amount you are writing off in the amount received box. Apply this amount to the invoice(s) you are writing off. Click OK to save your entry. Once all entries are complete, tag and post your batch. This will post your entry to the bad debt account not your cash as well as taking it off your Accounts Receivable Aging report!

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