QuickBooks is an excellent choice of accounting software to handle invoices. You can easily write off invoices due to minor discrepancies if needed in just a few simple steps. Handling this process properly ensures accurate accounting and that you don’t overpay your tax obligations.
- Go to Sales and select Customers, then find the specific customer and select the appropriate invoice to write off.
- Select New from the main menu and then choose Credit Memo under the Customers column.
- Input the customer information from the invoice and select the date for the write off.
- Fill out the credit memo with quantities, rates, and amounts from the invoice, but use the Bad Debt item instead of the original product or service.
- Apply the sales tax to the credit memo if it was applied to the original invoice.
- Apply the credit memo to the invoice by selecting the invoice, selecting Receive Payment, and then selecting the credit memo as payment.