Writing off an invoice in QuickBooks is a process that involves adjusting your accounts to reflect the reality that a customer’s debt is unlikely to be collected. This is typically done when a customer is unable or unwilling to pay, and you want to clear the outstanding amount from your records.
Here’s a step-by-step guide on how to write off an invoice in QuickBooks:
- Open QuickBooks: Log in to your QuickBooks account and ensure that you are on the correct company file.
- Locate the Invoice: Find and open the invoice that you want to write off. You can do this by going to the “Sales” tab and selecting “Customers.”
- Verify the Invoice: Double-check the details of the invoice to ensure that it is the correct one you want to write off. Make note of the outstanding amount.
- Create a Credit Memo: To write off the invoice, you will need to create a credit memo. Go to the “Customers” menu, select “Create Credit Memos/Refunds.”
- Select the Customer: Choose the customer associated with the invoice you are writing off. QuickBooks will ask you to select the item or service for which you are issuing the credit.
- Enter the Amount: Enter the amount you want to write off in the “Amount” field. This is the amount that the customer owes but is unable to pay.
- Save the Credit Memo: Save the credit memo. QuickBooks will ask if you want to give a refund or leave the credit to be applied later. Choose the option that aligns with your accounting practices.
- Apply the Credit Memo to the Invoice: Once the credit memo is saved, apply it to the original invoice. You can do this by going to the “Customers” menu, selecting “Receive Payments,” and choosing the customer. Then, apply the credit memo to the specific invoice.
