top of page

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

Write off an invoice in Quickbooks step 2

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

Write off an invoice in Quickbooks step 3

Step 4: Move the invoice from Account Receivable