GEM-CAR FAQ

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How to Handle a Customer's Bad Debts

If you wish to add a bad debt to a partially paid invoice, refer to option 2.

Option 1 is recommended if you wish to recover your taxes on a bad debt.

Step 1: Crediting an invoice

  • By reversing your invoice, you can easily remove a bad debt.

Note: This amount will be deducted from your sales figure, but you can recover the taxes immediately.

Option 2: Including a “Bad credit” payment method and adjusting your tax claim

  • Include a bad credit payment method to which you can associate the right general ledger code with a new bank number.

Go to the left menu Accounting > Payment methods > +New

Add DescriptionAbbreviation (optional), GL (consult with your accountant)

Then click on Save.

When you go to Point of Sale and invoice an estimate you will see a new payment method - "BAD CREDIT".

Note: Do not forget to advise your accountant because you will then have to make the manual adjustments to claim the taxes on the unpaid amount and manually enter it into your general ledger module.

 

Posted  5 months  ago by  Olivier Brunel
#373 110 views Edited  2 months  ago

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