Details: You want to write off a customer invoice. For example, you have a contract that is signed at $50,000 but your customer only pays $45,000. You want to write off the last $5,000 as a bad debt expense.
Step by Step: You can invoice (create final Job Bill) for the last piece in an Unbilled Amount and then write that off to Bad Debt. You would then proceed to Recognize Revenue and close the Job.
1. Created the final Job Bill to bring Unbilled amount to zero.
2. Post to the General Ledger
Create Final Revenue Recognition and Close Job
1. From the Job Bill Payments create a manual Credit Memo reason for Bad Debt - as you will not be able to apply the automated Bad Debt write off for a manual Credit Memo.
2. From Job Billing, highlight the new Job Bill created, click Options, Apply Credits, Select Job Bill, click "Add Credit Memo" box in bottom part of the screen.
3. Enter Amount of Job Bill.
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Reason = manual write off for Bad Debt and any comments required for an audit trail.
4. In the Apply Credit screen, select Job Bill and enter the amount in Credits column and click "Close."
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You should now see the Applied Credit reflected in the lower left-hand corner summary. If correct, click 'Save.'
5. Post to GL
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GL report should reflect that AR has been credited (reduced) and Bad Debt has been Debited (increased)
6. Once you have completed all steps, you can Change the status of the Job to Closed if that is the final step for the Job.