Bad Debts

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  • Updated 7 months ago
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Good Morning, I am new to the reckon world and would love some assistance please with journals. I have some old carry over balances (one, two cent) for over/underpayments from customers. How do I journal to bad debts please? FYI - When I log onto Reckon - 2017 R2
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Jules

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Posted 7 months ago

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Tanya Briggs, Accredited Partner

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Enter an adjustment note for each customer balance (code the amount to  an expense account Bad Debts), then in Receive Payments match the credits to the outstanding balance.  check your Accounts Receivable Aging Summary afterwards to make sure the customer has disappeared from the report.
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Jules

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Thank you for your assistance but can you confirm this process is the same for an over payment (0.01) as when you go to select invoice waiting for payment it does not appear (as its an over payment not a balance to be paid) ? Thanks
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Rav, Community Manager

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Hi Jules,

Welcome to the Reckon Community, glad to have you on board.

We've got a KB article which covers off how to handle bad debts in Reckon Accounts which should be useful to your query. Check it out below.

How to handle Bad Debts

Writing off a Bad Debit in Reckon Accounts Hosted
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Jules

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Thank you for your assistance but can you confirm this process is the same for an over payment (0.01) as when you go to select invoice waiting for payment it does not appear (as its an over payment not a balance to be paid) ? Thanks
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Pam

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Hello Jules if its an overpayment for 1 or 2 or even 10c then the monies have to be declared somewhere eventually.  There are two ways I deal with this, 1.  If in current year I up the invoice to equal the payment.  Hopefully you dont have 100s of them. This will balance out the amount, and even if you have 10 at 1c its only 10c so wont throw out your figures that much. 
If its for a previous year, then invoice the company for that 1c (dont send to them obviously), and attach the 1c payment to it, and it will even itself out.  
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Jules

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Thank you
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Pam

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I should have also added if its for a previous year then the invoices to be fixed need to be dated this current year, as I am presuming all is closed off.   Sorry I missed that part