How Do I Clear Old Invoices That We Want To Write-off?

This article will help walk you through writing off older invoices to clear them from Accounts Receivable.

• Select Items
• Select Edit to view the Item you want to create a credit for
• Select the Create Credit Invoice link
  
• “Credit” will automatically be added in the beginning of the description
• This will cause Purchase and Selling Amounts to be a negative (credit)
  
• Manually change any "Other Costs" to negative
  
• If you need to add restocking fees, add to "Other Costs" as a positive amount (this will reduce the credit amount)
• Change the component number to the next item in sequence
  
  
• Select Save
• Confirm that the amounts of the credit items = the original items (less any restocking fees or changes in freight, etc.
• Add Invoice number of the original item. Save and close.
  

• In the Money In screen, change the Payment Method to Apply Payment to Items from Funds Available. 
• Scroll to the bottom half of the screen.  (Do not enter a dollar amount in the Amount field of the red #2 area, but you can adjust the date and description as you like.)
• Filter for Invoice # and enter the negative amount in the Amount to Apply field on the item you want to remove the credit from. 
• If you do not see the item, change the "Filter" from Item Balance to All. 
  
• Click Post Payment.  
  
  

• Filter for Invoice # and enter a positive amount in the Amount to Apply field on the balance item you want to apply the money to.
• Click Post Payment. 

If no sales tax was involved- they can follow these easy steps

• Post a receipt (use Receive & Apply method), just like you would if the client was actually paying you.
• Change the Cash Account to something like “Bad Debt”.