Cancelling an outstanding balance without linking to bank

Accounting
1

I am trying to figure out how to cancel the balance on a part paid invoice which is now so overdue but just not worth me pursuing! If I try and make a credit note it wants to allocate the credit from a bank account but I dont want to do that as there is no transaction involved. All I am trying to do is reduce the original invoice balance to cancel off the remaining debt. As the invoice is months old the invoice itself is locked as it pertains to a previous VAT period. Any suggestions on how to do this correctly would be appreciated.

2

After a while an option to mark it as a bad debt will appear (Although I’m not too sure how long it is before this happens).

Edit
Apparently it’s 6 months:
http://community.quickfile.co.uk/t/bad-debt-write-off/1333/2?u=parker1090

3

You can definitely do this with a credit note. When you lodge the credit note you should see the following options, it’s the second one you want.

Typically however you’d mark these items as bad debt.

2 Likes
4

Thanks Glenn, thats great.

5

Hi Glenn

I have a client who has underpaid by 60p and I want to write off as bad debt, the invoice is less than six months old.

Can the six month bad debt button be over-ridden for amounts under £1.00, so I can get rid of this? (I have had other ones that I’ve had to wait for too!)

Thanks

6

Hi @TudorJones,

The 6 months is set because of the VAT rule, this is not changeable.

You can either wait to write it off as bad debt or if you wanted to get rid of it now, you can either amend the invoice or create a credit note for the difference?