• Registered: 03/12/2010
  • Posts: 12

Topic: Writing off a bad debt

I was wondering if anyone had a procedure for writing off a bad debt from a customer under FrontAccounting. I know I can make a journal entry to a bad debt expense account from Accounts receivable, but that doesn't take care of the customer balance in the reports.

Any ideas?

Thanks

  • rodw
  • Senior Member
  • Offline
  • From: Australia
  • Registered: 03/01/2010
  • Posts: 115

Re: Writing off a bad debt

Well I hope this is not a regular ocurrence for you. I think the easiest way would be to either make a payment and journal the writeoff from the bank account to the bad debt expense account.

Maybe also consider creating a bad debt writeoff item so you can raise a credit against the customer.

[b]RodW[/b]
Brisbane, QLD, Australia
  • Registered: 03/12/2010
  • Posts: 12

Re: Writing off a bad debt

Doesn't happen too often, but it does happen. I do bookbinding and I don't take payment until the job is complete. Sometimes the customer decides (probably after a tongue lashing from the spouse) that they can buy a new book cheaper than fixing the old one (which is true). I can generally sell the old book  and reduce the loss, but it is a danger of doing business this way.

  • From: India
  • Registered: 11/09/2009
  • Posts: 115

Re: Writing off a bad debt

ephraim wrote:

I was wondering if anyone had a procedure for writing off a bad debt from a customer under FrontAccounting. I know I can make a journal entry to a bad debt expense account from Accounts receivable, but that doesn't take care of the customer balance in the reports.

Any ideas?

Thanks

Need guideline from moderators.

Chaitanya
  • From: India
  • Registered: 11/09/2009
  • Posts: 115

Re: Writing off a bad debt

Hi Joe, Janusz,

Please correct if I got this wrong.

We may use credit note transaction for writing off bad debts.
Credit Note Type - Items written off
Write off the cost of the items to - Bad Debts A/c

Thanks

Chaitanya
  • Registered: 12/25/2007
  • Posts: 2,447

Re: Writing off a bad debt

I'm not accountant, by for me crediting seems to be good solution. Plus placing the customer account on hold smile.
Janusz