Write off or discount all or part of an A/R Balance
If you wish to write off or discount a client balance, then you need to enter a Credit Memo. A Credit Memo is a negative A/R invoice.
To enter a Credit Memo:
Choose the A/R module > Invoice tab and enter the File Number
The Item screen will appear. Put something appropriate in the Reference and Description (ex. Discount of Client Balance Owing)
In the Each field put in the amount of the Credit (the balance you want to write-off) with a negative sign (ex. -500)
In the GL Account field put in your Fees GL account (Default Client Fees GL 4001)
Set your Invoice Date
NOTE: CLICK HERE for information on treating bad debts as an expense.