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Creating a zero-dollar cash receipt in Cash Receipts Entry is the easiest way to write off a bad debt, but it also may be accomplished by issuing a credit memo against the invoice or by adjusting the invoice. You can also write-off a portion of an invoice.

To write off a portion of an invoice

1. Select Accounts Receivable Main menu > Cash Receipts Entry. If you have batch processing enabled, the Cash Receipts Entry Batch window appears. Enter the batch number and click Accept.

2. In the Cash Receipts Deposit window, enter the deposit number, description, bank code, and deposit date. For more information, see Cash Receipts Deposit - Fields.

3. In the Cash Deposit Amount field, to write off a portion of the invoice, type the amount received and click Accept.

4. In Cash Receipts Entry, enter the customer number. For more information, see Cash Receipts Entry - Fields.

5. Select Cash in the Deposit Type field.

6. In the Check No. field, type Bad Debt.

7. Verify that the Amount Received field displays as the portion to be paid, and then click the Lines tab.

8. In the Invoice No. field, enter the invoice of which you will be writing a portion off.

9. In the Amount Posted field, enter the full amount of the invoice as a negative number.

10. In the GL Account field, enter the general ledger account number for bad debt expense, and enter the amount to be written off as a negative amount.

11. Click Accept and then click the Print button to print and update the Cash Receipts Journal and the Daily Transaction Register.

A portion of the invoice is written off.

To write off an entire invoice

1. Select Accounts Receivable Main menu > Cash Receipts Entry. If you have batch processing enabled, the Cash Receipts Entry Batch window appears. Enter the batch number and click Accept.

2. In the Cash Receipts Deposit window, enter the deposit number, description, bank code, and deposit date fields. For more information, see Cash Receipts Deposit - Fields.

3. In the Cash Deposit Amount field, to write off an entire invoice, type 0.00 dollars and click Accept.

4. In Cash Receipts Entry, enter the customer number. For more information, see Cash Receipts Entry - Fields.

5. Select Cash in the Deposit Type field.

6. In the Check No. field, type Bad Debt.

7. Verify that the Amount Received field reads as 0.00 dollars, and then click the Lines tab.

8. In the Invoice No. field, enter the invoice to be written off.

9. In the Amount Posted field, type the amount to be written off. To write off the entire invoice, type the full amount of the invoice.

10. In the GL Account field, enter the general ledger account number for bad debt expense, and enter the amount to be written off as a negative amount.

11. Click Accept, and then click the Print button to print and update the Cash Receipts Journal.

The entire invoice is written off.

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