Invoice Will Not Be Paid
If you know that a customer is not going to pay you for an invoice, you should write this sale off, typically as bad debt.
To do this:
1. Create a new account named Bad Debt and assign it an expense account classification (6-xxxx).
2. Use the Sales window to create a Service Sale (layout) for the customer. For each of the customer's outstanding debts, enter a line item with a negative value, and assign it to the Bad Debts account you created in step 1. Note: If you use Categories, make sure you enter the same category on the credit as you did on the original sale.
3. When you're finished, click Record. The transaction you've recorded is called a customer credit.
4. Open the Sales Register in the Sales Command Center, then select the Returns & Credits tab.
5. Highlight the customer credit you created in step 2.
6. Click Apply to Sale, opening the Settle Returns & Credits window.
7. Apply the credit memo to one or more of the customer's open sales, which appear in a scrolling window.
8. Click Record.
Note: If you are using 2014 AccountEdge Pro for Canada, or 2014 US AccountEdge Pro, update 18.0.6 or later, you can create a Credit Memo transaction by clicking the Enter Sales button or by clicking the New Credit Memo button in the Returns and Credits area of the Sales Register. Details: Creating A Credit Memo