How do I deal with an insolvent client with outstanding invoices?

Accounting
1

Hi

I have recently had my first customer go insolvent with an outstanding invoice. I would like to know how to tag this invoice, I had a look online and all I could find was how to make a journal entry which seems difficult. I should be able to figure it out but it will still leave invoice untagged, any advice would be very helpful. Thanks

2

This post may well help you:

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3

Hi @Trade_Sash_Weights_1

As @martinprice correctly mentioned, there is a “bad debt” option which will show up once the invoice has turned 6 months old. This will automatically create any journals needed and adjust your figures for you.

4

@QFMathew

I wonder if it would be worth having a Knowledge Base article about Bad debt as this functionality doesn’t seem to be documented

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