Write Off Bad Debt

Writing off bad debt allows organizations to remove uncollectible accounts from their books, improving the accuracy of financial reporting.

To write off bad debt:

1. Create a new Product named Bad Debt.

2. Set the product as a Non-Revenue Product.

   
3. Click Create Product.

   
4. Locate the invoice that needs to be written off.

5. Click the three points (...) at the end of the invoice row.

6. Select Create Credit Memo from the dropdown list.

   
7. In the credit memo, change the product to Bad Debt.

8. Click Save to finalize the credit memo.