|COBS Tech Support
Joined: 09 Sep 2005
|Posted: Thu Oct 11, 2018 10:57 am Post subject: How To Write Off a Debt Debt
|1. Create a direct entry in your cash book.
2. Set the Transaction to an Adjustment type.
3. Set Deposit As to Other. (If available.)
4. In the Reference note the entry as a bad debt write-off. (Put further information in the Details if necessary.)
5. Leave Amount $AUD set to zero.
6. In the Cash Manager Entry Allocation screen enter a customer dispersal (by typing "C" in the T column.)
7. In the Account column enter the account code of the account whose debt you wish to write off.
8. In the Amount column enter the write-off amount. This is entered as a positive number.
9. The list of unpaid invoices will be presented to you. Allocate all invoices you have written off.
10. When you have returned to the Cash Manager Entry Allocation screen enter a direct dispersal (by typing "D" under the T column.)
11. In the Expense/ GL code column enter the expense code or chart of account code you use for bad debts write-offs. (In the default CAPITAL chart of accounts this is referred to as "Bad debts".)
12. In the Amount column enter what you have written off as a negative amount.
13. Total the transaction.