Bad Debts

Firstly, the customer should be set to 'Stop Credit' status.  It is best not to make the customer inactive, as if the customer does return to purchase further goods and services they will not be visible in the customer search dropdown, so sales people may add them in as a new customer.  Setting to Stop Credit keeps the customer in the list and alerts sales people.  It also prevents 'new' sales being added.  You can only receive payments from the bad debtor.

How to set a customer status to 'Stop Credit'

  1. From the main menu strip at the top, go to Sales > Sales, OR click the Sales button on the main screen.
  2. Look up the existing customer.
  3. Click the "Edit Customer" button.
  4. In the customer details screen, click the "Other" tab.
  5. Click the "Stop Credit" checkbox.
  6. Scroll down and click "Save Changes".

How to write off bad debts

All bad debt invoices should be cancelled via the 'Cancelled' checkbox at the top right of the Invoice screen.

Alternatively, Credit Notes can be raised for all Invoices, which will offset the overall amount owing for the customer to 0.00 balance.

Did this help?

Powered by HelpDocs (opens in a new tab)