How long is it until an invoice is classed as a bad debt?

Accounting
1

What is the elapsed period of time that must pass before an invoice can be provided against as a bed debt please

2

Hi @Mike

Itā€™s 6 months. After this time, you will have an option to write off an invoice as a bad debt from the invoice preview screen.

Hope that helps!

3

My heavens that was a quick response.

It would be very helpful if that was a user definable parameter, but I accept that this may not be feasible.

Our policy is to provide against any debt that is overdue by 60 days - which I know is strict, but i does ensure that our debtors figure is prudent. Your facility to be able to release the bad debt flag is fantastic.

On the subject of credit control, is there a way of ā€˜forcingā€™ a credit control reminder run.

Very many thanks for the fantastic service as always

Mike

4

We try :wink:

Itā€™s 6 months as this is the term stated by HMRC in relation to VAT:

You must wait at least six months from the later of when payment was due and payable or the date of supply. The due date for payment may be determined by your normal credit terms, or by any longer period for payment which you agree with your customers.

(Source: HMRC VAT Notice 70018)

At present, the system handles this all for you. I think if we introduced a customisable range, it may cause confusion for those who arenā€™t familiar with this notice. We try not to complicate things.

There isnā€™t a way of doing this unfortunately, although the automated system would send the notices for you as and when needed if you prefer. Thereā€™s more on this here. In addition to the guide, it is also possible to disable them for individual clients. Iā€™ll arrange for the guide to be updated with this information shortly.

5

I rather suspected that there would be a very good reason - e.g. Tax Compliance, why the bad debt parameters are as they are. No need to take this forward then.

Also noted about the reminders. I held off sending some of them earlier in the year so they were not sent - iā€™d like to send them now, but I have a ā€˜workaroundā€™ Again, fo further action requested from you.

Very many thanks

Mike

6

Iā€™m not sure how you are sending these at the moment, but if you go into the invoice itself and click ā€œSendā€, you will be given the option to send an invoice reminder from there:
image

7

Brilliant ! Exactly what I need. Thank you

1 Like
8

just wondering can some one tell me how to do the entry for bad debts recovered in myob.

9

Hi @site2017

Iā€™m afraid thatā€™s something youā€™d have to ask MyOB about. Weā€™re only able to offer support for QuickFile.