Writing Off Bad Debts
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This allows you to write off any unpaid amounts on customer accounts to the bad debt account.  It is used when you are certain a debt cannot be recovered, e.g. if a customer goes out of business, and wish to clear the outstanding balance and close the account on your system.  You may need to check Nominal Details first to ensure a bad debt account exists.  It normally exists in the Profit and Loss, Overheads section. 

1.   Select Gx Sales on the toolbar.
2.   Select Transaction Entry from the menu.
3.   Enter the Default Posting Date for the bad debt write off journals. 
4.   Control Total - enter the total of all the items to be posted in this batch.   
5.   Account Code - enter the customer account. 
6.   Type - from the drop-down menu choose -journal. 
7.   Post Date - confirm the posting date for this transaction. 
8.   Tran. Date - confirm the transaction date for this journal. 
9.   Our Reference - enter a reference for this journal.  It could be a description of the purpose of the journal e.g. "bad debt" or  "write off", or the invoice numbers that are being written off. 
10.      Customer Reference - this can be used to add a further reference to the debt write off transaction.
11.      Goods - enter the goods amount being written off.
12.      Vat - enter the vat amount on the invoices you are writing off if you are able to claim back the vat on these unpaid sales invoices.  
13.      Nominal Analysis - click the ellipsis icon graphic and select the bad debt Nominal Code from the drop-down menu. 
14.      Enter a comment for the nominal transaction if required. 
15.      Nominal Amounts - confirm the amount being written to this nominal code.
16.      Click the Save button.
17.      Enter the next account code if there is more than one bad debt to write off in this batch.
18.      When you have entered all the transactions, click the Save button at the bottom right of the screen.
19.      You will be warned if  if the cumulative total does not match your control total.  You should double check the figures entered to make sure you have not made a mistake when entering the transactions before continuing.  When you proceed with the update, the journals are posted to the sales ledger.  You can use Customer Transaction Enquiry to view the journals posted to the customers account. 
20.      You can now allocate the bad debt write-off journal to the outstanding balance on the customers account to clear their outstanding transactions. 
21.      If you have not already done so, you can change the account status to dead to delete the customer. 

Click here to view the Sales Transaction Entry screen as used for writing off bad debts.