Writing off Bad Debt

Removing a customer balance unlikely to be collected is done in the following manner.

1. At Setup / A/R / Pay Methods, add a row for Bad Debt, using the Bad Debt Expense General Ledger account, if this Pay Method does not already exist.
   Note: When setting up the Pay Method, if there are multiple locations, the appropriate general ledger account must be selected for each location in the grid.
2. At the Payment on Accounts screen, enter the amount to be written off in the Payment Amount. A note may be entered in the Description area indicating this is a write-off for reference.
3. Select Bad Debt for the Pay Method in the Payment grid.
4. Manually select the Invoices being written off by selecting in the far left column of the grid for each Invoice.
5. Save the payment.