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Bad debt options

I have a client who has not paid invoices in 2018. They gave us assets to sell in lieu of payment to recoup this but i can’t see a provision to input the income against the client as technically they have now paid.

Any pointers?

Are you holding the assets or have you sold them? How have you accounted for them in Quickfile (if at all)?

I haven’t accounted for it as yet. i have invoices from us to the people who bought it to account for the sale but i don’t know how to then allocate it as a credit to the client and offset it against their invoices.

I did wonder whether to do it via credit notes?

You have basically settled a transaction by barter rather than by cash.

If you are now selling the “thing” that you received then you would simply treat the money received as if it was a payment by the client.

If you are keeping the “thing” in the business either as an asset or stock then you can create a supplier account with a purchase equal to the outstanding debt. Then use the procedure described in the link below to set one off against the other.

Thank you, that’s exactly the position.

So to be clear, the sale of the goods we’ve had come in from them goes straight in as a payment from the original client with the debt? That would actually make things very simple.

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