Writing Off a Bad Debt

Options
Geoff_Reynolds2
Geoff_Reynolds2 Member Posts: 3
edited May 2023 in Accounts Hosted

I have a few invoices that need to be written off. How do you do this in Reckon Accounts Hosted?

I am MYOB trained and Quickbooks and Xero user. In these Account Packages your invoices have the ability to Select the Bad Debt in the account selection.

Thanks,

Jo

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,360 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Options

    This is the same, first of all you need to create an expense account called Bad Debts with GST (if you charged GST on the invoices). Then do a customer adjustment note, and create an item called Bad Debts, linked to the same expense account. After you enter the adjustment note the system should ask if you want it to offset an invoice

  • Geoff_Reynolds2
    Geoff_Reynolds2 Member Posts: 3
    Options

    Hi Kris, I have a Bad Debit in my Expense Account, but how do I make a Bad Debt in my Customer Items and link it to an Expense Account?

  • Kris_Williams
    Kris_Williams Member Posts: 3,360 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Options

    If you go to create adjustment note, down the bottom where you would select your income account on an invoice, type in Bad Debts, it will ask to set it up, set it up as a service, and link it there to your expense account with NCG tax code

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,460 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Options

    @Geoff_Reynolds2 You create an Item linked to that same Bad Debts Expense account. The tax code should be GST, rather than NCG (because you'll be using it on sales forms)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Kris_Williams
    Kris_Williams Member Posts: 3,360 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Options

    I use tax code NCG because it’s linked to an expense account

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,460 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2023
    Options

    @Kris_Williams That would normally be the thinking however because you want this to impact reduction in income (via the Adjustment Note) on the BAS, to do that it needs to have the GST code ☺️

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Geoff_Reynolds2
    Geoff_Reynolds2 Member Posts: 3
    Options

    Thanks for that Kris. Why are things so different.

  • Kris_Williams
    Kris_Williams Member Posts: 3,360 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Options

    There are always many ways to do the same thing, I like the KISS method personally.