When a customer does not pay their open invoices or will not pay sales tax on an invoice, or perhaps has to close their business, you may want to write off their invoices to a General Ledger account to reflect on your corporate tax return.

To write off of an invoice or a customer’s balance on account, you will use the Cash Receipts Data Entry screen on the Cash Receipts Menu. Following are the step by step instructions:

Enter the date for the write off -> Deposit amount is always zero
Type the customer code or ? to insert a customer from the display window
Enter check number as a reference (i.e. BADDEBT, WRITEOFF)
ABA field can be a memo or left blank -> Debit cash amount will always be a zero

Enter the invoice(s) that you want to write off -> Bypass discount field -> Press the Enter key to accept the amount shown or enter a partial invoice amount if you are only writing off a portion of the balance.

Once all of the invoices are entered, type ‘MISC’ in the invoice field to distribute to the General Ledger -> Enter the General Ledger account number -> Press Enter to accept the amount displayed.

Notes:

If you want to distribute the amount to more than one General Ledger account, continue to enter account numbers and amounts until the distribution amount is equal to zero.