I have a customer owing an outstanding amount.
This is a bad debt and will never be paid.
Their invoice is showing as partial - there is a small amount left to be paid.
How do I account for this and what do i do with it?
Do i leave it as a partial payment and just leave the outstanding payment due, or do i somehow wipe it off as a bad debt?
In that case just raise a credit note for the outstanding balance. Its a bad debt but you don’t need to show it as such in the p and l. Credit note will reduce the turnover accordingly.