Allocating part of an invoice to provision for bad debts

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  • Updated 5 months ago
We have issued an invoice, for which we have received a partial payment.  The outstanding balance is to be written off as a bad debt, since the company is no longer trading.  Can you advise the steps please?  I have processed the payment amount, but need to know how I allocate the balance to "provision for bad debts" (I have already set this up as a category.  Many thanks.
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Denize Hooton

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Posted 5 months ago

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Kevin Russell, Accredited Partner

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Can you create a customer credit? Can you create an item and allocate it to the expense account bad debts? Can you apply the customer credit to the remaining balance? Thatll fix it