Writing Off Bad Debt (Uncollectable Receivables)

How to: Write off bad debt (uncollectable receivables).

Environment: Comsense Enterprise

Security Requirements: 

  • Receivables/Invoicing 
    • Customer Payment
      • Create a Customer Payment
      • Save a Customer Payment

In this article:

Creating a General Ledger Account for Bad Debt

Writing off bad debt requires a general ledger account for the bad debt transactions. If you do not already have a bad debt general ledger account, Create a General Ledger Account called Bad Debt Writeoff using Table 1.

Account Name Bad Debt Writeoff
Account Class Sales (Revenue)
Account Assignment Customer Payment Adjustment
Profit & Loss Model Group An expense group (varies by organization)
Table 1: Bad Debt General Ledger Account Information
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Chart of Accounts window; shows an Sales Revenue account called Bad Debt Writeoff.
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Account Assignment window; shows the Bad Debt Writeoff general ledger account in the Customer Payment Adjustments tab of the Account Assignment window.
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Profit and Loss Model window; shows the Bad Debt Writeoff general ledger account under the Expense category of the profit and loss model.

Writing Off the Bad Debt

To write off bad debt, you must add an adjustment to the invoice in the Customer Payment window.

In the Customer Payment window:

  1. Create a New Customer Payment
  2. Select the journal date

On the invoice line item:

  1. Right-click
  2. Click Add Adjustment
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Customer Payment window; shows Invoice line item right-click menu and the location of Add Adjustment.

On the Adjustment line item:

  1. Select Bad Debt Writeoff in the Account field
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Customer Payment window; shows the Account drop-down list on the Adjustment line item.
  1. Enter the write-off amount in the Adjustment field
    • The Invoice Balance will update to zero
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Customer Payment window; shows the write off amount in the Adjustment field and the Invoice Balance field at 0.00.
  1. Click Save
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