![]() customer overpaid), or apply the credit to an invoice. QuickBooks will want to know if it can help you apply it somewhere else, offer a refund and help you write a check (i.e. A new window will open informing you that you have a remaining balance on this credit.Please note, there are various ways to write off bad debt in QuickBooks, but using a Credit Memo is the ONLY way to adjust your Sales Tax Payable account. Sales Tax – If your business tracks Sales Taxes Payable, this is where you will adjust your sales taxes payable account.If you are using QuickBooks’ class tracking feature, select the appropriate class.The amount will be the amount of the invoice you are unable to collect and want to write off your books.You can simply put “unable to collect invoice #…”. It’s not required, but it makes it a lot easier to go back if you ever need to quickly reference what invoice number you wrote off. In the description box, I like to reference the invoice number we are writing off.Click OK to set up the new Bad Debt Item. If you need to create a new Item, click Add New, select Other Charge, the Item Name can be Bad Debt, in the description box you can type in Bad Debt or Noncollectable Funds, and then for the account select your bad debt expense general ledger account.If you don’t have one, you will need to set one up. You will want to have an Item specifically set up for Bad Debt. Enter your customer’s name, choose the date you want to write off the invoice, and leave the credit memo number alone (QuickBooks will automatically assign that number for you).From there select Create Credit Memos & Refunds. Next, go to the Customers Menu or go to the Customer Center located on your main home screen. Write down the customer’s name, the noncollectable invoice number, and the amount due. This report will show you all the open invoices you currently have (customers who owe you money). Even if your business does not collect sales tax, this is a pretty easy way to write off bad debt and I highly recommend it.Ĭlick on the Reports menu and select Customers & Receivables from the drop-down menu. However, the way I’m about to show you is the ONLY way to adjust your sales taxes payable liability account (if applicable to your business). IMPORTANT – There are several ways to write off bad debt in QuickBooks. You can write this off as Bad Debt and get the sale off of your books in 2 simple steps. After you have exhausted all possibilities of trying to collect payment from your nonpaying customer (called them, emailed them, mailed past due statements, charged late fees, offered to work out a payment plan, etc) you realize they are not going to pay. Occasionally you will have those stinky customers who refuse to pay for the products and/or services your business sells. Yes, it’s an unfortunate part of doing business. Learn more about Exporting Revenue to QuickBooks Online.QuickBooks Tutorial: How to Write Off Bad Debt in QuickBooks Note: Family/Account names and individual transactions are not exported. The export includes a summary of the payment transactions and the associated Category 1s for the exported date range. When connected to your QuickBooks company file, the export is transmitted as soon as you select your criteria and click the Export button. ![]() You will associate each Jackrabbit Cat1 to an account in the QuickBooks Online Chart of Accounts that populates into Jackrabbit once connected. ![]() ![]() ![]() Your authorization allows Jackrabbit to connect to QuickBooks Online to share data through a secure internet connection. Learn more about Exporting Revenue to QuickBooks Desktop.
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