Writing off bad debt

This guide shows the process of writing off bad debt within PPS.

To ensure that the accounts stay balanced within the system invoices that are being written off need to be recorded correctly.

Adding a payment method

A payment method needs to be added to the system to that can be used to record. You can add a payment method by clicking tools >> look-up tables >> payment methods >> open.


You can then use the add button to add a payment method named "bad debt". The banking and reconciliation settings on this screen are not needed and as such can be left blank.

Paying the invoice

Select the invoice that you wish to write off, this can be done be done by double clicking the invoice from the accounts screen by clicking accounts >> accounts.

Pay Invoice1


You will then need to select payments >> record a new payment against this invoice.






Select "Bad Debt" as the payment method and click save.




Balance the accounts

You will now need to balance the accounts in order to ensure that the invoice that has been written off does not effect your accounts reports.


You will need to create a charge with a negative value to balance the original invoice. Click New >> New charge for client.





Select the same charge type as the one being written off and enter the unit cost as a negative to cancel the original charge.

Click OK - Go to invoice / payment and then create invoice.



invoicepay



Set the payment method as "Bad Debt" and click close.








 

Related Articles
[Video] Creating a charge and invoice
Viewed 947 times since Fri, May 20, 2011
How to process a Refund or Credit
Viewed 2431 times since Thu, Dec 2, 2010
Applying Discounts to Charges
Viewed 554 times since Thu, Mar 19, 2015
[Video] Invoice - Receipts list
Viewed 526 times since Fri, May 10, 2013
[Video] Banking and Reconcilliation
Viewed 588 times since Tue, May 14, 2013
[Video] Cash desk
Viewed 592 times since Fri, May 10, 2013
[Video] Create a charge
Viewed 620 times since Fri, May 10, 2013
[Video] Raise an invoice
Viewed 608 times since Tue, May 14, 2013
Expenditure Management Help Guide
Viewed 811 times since Fri, Oct 1, 2010
Creating a Multi-Charge Item
Viewed 924 times since Tue, Oct 18, 2011