Write Off an Invoice in QuickBooks - Simple And Step-By-Step method

Unpaid Invoices is the sad reality of every business. Unluckily, it is a part of the business, and the only option left is to write off. It is the only way of dealing with bad debt.Bad debts generally occur when your customer refuses to pay the debts due to any reasons.QuickBooks allows you an easy way to write off your invoices. When you write off an invoice it will be marked as paid.

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Key Point

Two main reasons, you need to write off an invoice. -Underpayment -Bad Debt

The Process to write off an invoice (Easy way to know)

1. Open your QuickBooks, go to the ‘Report Menu’ and click on the ‘Customers and Receivables’.
2. A certain list will appear,select ‘the open invoices’ report from the list.
3. Search for the customer you would like to write off and scribble down the important information
4. Now go to the ‘customer menu’ and click on ‘create credit memos and refunds’..
5. The credit memo screen will open now you must follow the steps: -
   • Input the name of the customer and the date of the invoice you want to write off.
   • Now proceed to select the bad debt you want to write off.
6. You must proceed to fill the necessary information.
7. Click on ‘save’ and then close.
8. Now a new screen will open which will offer you to apply a ‘credit to the invoice or a refund’..
9. Choose ‘apply a credit to invoice’ and‘check off the bad invoice number’.
10. And finally, click on Done.
11. Always remember to cross-check your account before closing.

*Recommended to read: QuickBooks Error 503

The common error (You must always avoid)

• Never delete your invoices to get rid of bad debt this can lose your information or you have to remit sales tax which you never collected.

• If you’re a cash-basis taxpayer never issue a cash memo of your original invoice instead of using a bad debt expense item, it can impact your total sales of those items.

End of the line

Though there are many ways to tackle your bad debts, but write off is the only best solution for your bad debts. Sometimes you choose other options like deleting your invoice but always remember that, this step can give you failure results.

In this article, we have outlined all the managerial perspectives of invoice write off and gave you the best way to fight with your unfortunate bad debt. For more information, related to Write Off an Invoice in QuickBooks, you can surf our website. In case of any queries, you can contact us at 1.855.738.2891

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