How Do I Write Off an Invoice That Will Not Be Paid
*** This FAQ Applies to AccountEdge, AccountEdge Network Edition, Premier Accounting, FirstEdge and BusinessBasics ***


If you know that a customer is not going to pay you for an invoice, you should write this sale off, typically as bad debt. To do this:

  1. Create a new account named Bad Debts and assign it an expense account classification.
  2. Use the Sales window to create a miscellaneous sale for the customer. For each of the customer's outstanding debts, enter a line item with a negative value, using the Bad Debts account you created in step 1 in the allocation account column in each line item. Note: If you use Categories in MYOB, make sure you enter the same category on the credit as you did on the original sale.
  3. When you're finished, click Record. The transaction you've recorded is called a customer credit.
  4. Click the Sales Register option in the Sales Command Center, then select the Returns & Credits tab.
  5. Highlight the customer credit you created in step 2.
  6. Click Apply to Sale. The Settle Returns & Credits window appears.
  7. The customer's open sales appear in a scrolling window. Enter the amount of each open sale in the Amount Applied column.
  8. Click Record. All the customer's bad debt is cleared.

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