How To Write Off Invoice in QuickBooks Desktop? – Step by Step Guideline
The best way to write off an invoice in QuickBooks systems – whether you are using QuickBooks Desktop or QuickBooks Online – is to use the credit memo feature. However, there are some additional steps to work in QuickBooks Desktop:
Step 1: Checking Account Receivables Reports for invoices that would be written off
1. Open Reports menu
2. Find Customers & Receivables, then A/R Aging Detail
3. Look for which outstanding accounts receivables should be written off.
Step 2: Prepare Accounts Allowances for Doubtful Accounts
1. Navigate to List, then choose Chart of Accounts
2. Press Ctrl+N to open the Add New Accounts window
3. Choose Type as Account Receivables, rename the account, and put it as a subaccount of Accounts Receivable
Step 3: Prepare Bad Debt Expense Account and Bad Debt Item
1. Open Chart of Accounts again, then press Ctrl+N to open the Add New Accounts window
2. Add the Bad Debt as an expense account, which will appear on the P & L report
3. Choose List, then Item List
4. Click on Item, then New to add Bad Debt Item
