I have several invoices for a retailer who was supplied on sale or return. Unsold magazines were credited but we were never paid the the copies sold. Most of these invoices are within the timescale for writing off but the option does not appear. I assume that this is because they are all showing as part paid.
Adjusting nominal accounts isn’t an issue but I would just like to stop these invocies appearing on the outstanding invoices list as would a fully written off invoice.
Credit note to reduce outstanding balance? That would debit general sales (or whatever) and credit the control account, if you then wanted to recognise it in your books as bad debt instead of a refund you’d have to make a journal to credit back to general sales and debit bad debt instead.
The credit note is legitimate for unsold magazines returned. The issue is that he hasn’t paid for the magazines that he did sell. I know how to raise journal entries, the problem is that there is a small group of outstanding invoices cluttering up the list of outstanding invoices.
I assume that simply journaling the outstanding balance to the correct account won’t of itself flag the invoice as written off.
Exactly. When you raised the sales invoice it would have made a credit to general sales and a debit to the debtors control account, and to write off the bad debt you want to move the appropriate proportion of that debit from debtors control to bad debt write off (leaving the credit on general sales).
But if you were to do that just with a journal directly the invoice would still show as outstanding. If you credit note the invoice (so it isn’t outstanding any more) that will do
which you could then balance with a journal of
to end up with the right net result. This all assumes you’re not VAT registered, things would be more complicated if you are and there would be manual adjustments to make on your next return.
The better option would be for QuickFile to support the bad debt button for partially-paid invoices - @QFMathew any thoughts on that?
You can actually mark a part paid invoice as a bad debt:
However, the invoice would need to be at least 6 months overdue before this option appears.
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