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Paypal Chargeback move to Bad Debt


#1

We’ve had a chargeback from Paypal which we will never get from the customer now so I need to write it off to bad debt. Our bank accounts aren’t linked with Quickfile so everything is done manually. I can’t just refund the original invoice as that won’t affect the bad debt account. How can I reverse the payment and move the amount to bad debt?


#2

There is a time limit before you can actually write off a bad debt. IIRC it is 6 months after the due date of the invoice.

An accountant may come up with an alternative but, as no bank tagging is involved, I would simply cancel the payment of the invoice and apply any Paypal charges to the appropriate account. Quickfile will offer an option to write off the debt once it is old enough but not before.

You also need to flag the customer in some way to do no more business. My system is to type “XXX” after the name and set the credit limit to £1.


#3

Thanks for the reply!


#4

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