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Bad Debts Write off

Posted: Thu Nov 06, 2014 7:54 am
by Andre
I am trying to confirm the correct procedure for writing off bad debts in Capital such that it correctly accounts for the GST component on the BAS Assist report. We do not currently make a Provision for Bad Debts.

I have looked at the Help files of V7 and V8 and whilst the help search brings up "Bad Debts", the only reference on that page is a small reference in the Cash Manager section
that says "7) Write off Bad Debts".

How do we write off bad debts in Capital?

Posted: Thu Nov 06, 2014 7:57 am
by COBS Tech Support
The most basic way to do this is to raise the equivalent of a credit note, but perhaps assign the status of the transaction type to "Adjustment" rather than "Credit Note" or "Adjust Note"

If you want to debit Bad Debts in your general ledger rather than debit sales, then add the column "GL Code" to your Items grid (right mouse, Column Properties)

Then type the general ledger code for bad debts into this cell before saving the transaction.