Bad Debts

In business, managing bad debtors is crucial for maintaining financial stability. This document outlines a three-step approach to effectively handle bad debts in HirePOS. The steps vary depending on the stage of the debt, ensuring a systematic and efficient process.

To prevent further bookings or invoices from bad debtors and segregate them from other customers, placing the customer on Stop Credit is essential. This action helps in managing outstanding debts effectively.

To set a customer to Stop Credit:

1. Go to Sales/Hire > Customer Overview from the main menu.

2. Search for the customer and click on Edit Customer.

3. In the Customer details screen, navigate to the Account / Payment Terms section.

4. Check the Stop Credit checkbox.

5. Save the changes.

Closing off hires and avoiding overdue return reminders is crucial in managing bad debts efficiently. Populating the Hired To date ensures proper closure of hires and prevents unnecessary reminders.

To populate the Hired To date:

1. In the Booking/Invoice screen, click the Copy button between the Booked To and Hired To dates.

2. If prompted, cancel out of the Autocalc prompt.

3. Save the changes.

When dealing with bad debts, it's essential to write off the amount owed to maintain accurate financial records. There are two methods to write off an invoice based on your business situation.

To cancel an invoice:

1. Open the invoice and tick the Cancelled checkbox.

2. Save the record to prevent the unpaid invoice from reflecting in reports.

To create a credit note:

1. Go to Sales/Hire > Customer Overview.

2. Search for the customer and observe the invoice value to be written off.

3. Click on the New Credit Note option from the dropdown menu.

4. Add a line item with a negative amount equal to the outstanding invoice.

5. Save the record to offset the outstanding invoice.

By following these steps, you can effectively manage bad debtors in HirePOS, ensuring financial stability and accurate reporting.