How to Write Off Invoice in QuickBooks
Writing off an invoice in QuickBooks is a simple process that allows you to clear unpaid balances on customer accounts. This feature is particularly useful when you have tried all means to collect payments but have not been successful. Writing off an invoice doesn’t mean you are forgiving the debt; rather, it helps you keep your books accurate and up to date. Here’s how you can write off an invoice in QuickBooks:
1. Open QuickBooks and navigate to the Customer Center.
2. Locate and select the customer whose invoice you want to write off.
3. Click on the “Receive Payments” option in the customer’s transaction list.
4. In the “Receive Payments” window, select the invoice you want to write off.
5. Click on the “Discount & Credits” button located at the bottom of the window.
6. Enter the amount you want to write off in the “Amount of Discount” field.
7. Choose an account to track the write-off in the “Discount Account” field.
8. Click on the “Done” button to complete the write-off process.
Frequently Asked Questions:
1. Can I write off multiple invoices at once?
No, you can only write off one invoice at a time in QuickBooks.
2. Will writing off an invoice affect my income or sales tax reports?
Writing off an invoice won’t affect your income or sales tax reports as it is not considered income.
3. Can I reverse a write-off if the customer pays the invoice later?
Yes, you can reverse a write-off by going back to the customer’s transaction list and selecting the invoice. Then, click on the “Discount & Credits” button and remove the write-off amount.
4. Can I write off an invoice if it’s already been paid partially?
Yes, you can write off the remaining balance of a partially paid invoice.
5. Does writing off an invoice remove it from the customer’s account?
No, writing off an invoice does not remove it from the customer’s account; it only clears the unpaid balance.
6. Can I write off an invoice if it’s from a previous year?
Yes, you can write off invoices from previous years as long as the transactions are still open in QuickBooks.
7. Will writing off an invoice affect my accounts receivable balance?
Yes, writing off an invoice will reduce your accounts receivable balance by the written-off amount.