The following guide details a recommended method for dealing with bad debt in your PPS system.
Section One - Debt Reports
a. PPS has two pre-made reports in place for the identification of debt on your PPS system. These can be found via Reports > Reports & Mail Merge > Accounts.
Aged Debtors Report/Letters - This report sections off all unpaid invoices based on how old they are. In the Print/Preview Options choose to export the report as Letters to create a debtor letter for any outstanding invoices.
List of Debtors at end of period - This is a retrospective report that allows you to view all invoices that were unpaid or part paid at the end of desired period though they may now be paid.
Section Two - Writing off bad debt
a. A payment method needs to be added to the system that can be used to record the writing off of debt. You can add a Payment Method via Tools > Look Up Tables > Payment Method.
Click Add and create a new method named "Bad Debt".
b. Locate the invoice you wish to write off via either the log or accounts screen of the client or third party. Double click the invoice to open.
c. Select Payments at the bottom of the screen and Record a New Payment against this Invoice.
d. Confirm the payment amount is enough to cover the debt and choose "Bad Debt" as the payment method.
Section Three - Balancing your Accounts
a. You will now need to balance the accounts to ensure that the invoice that has been written off does not affect your accounts reporting.
b. Raise a new charge for the client or third party with a negative value of the balance owed on the original invoice and choose OK- Got to Invoice/Payment to raise the invoice
c. Pay of the Invoice using the Bad Debt payment method.
d. Your accounts will now be balanced and if required you can use the Payment Method criteria to exclude any Bad Debt instances from your accounting reports.