Write Off Bad Debt Using a Negative Invoice
The first method for writing off bad debt in Vision is to enter and post a negative invoice for the amount of the write-off. This method is typically considered an invoice adjustment as opposed to a bad debt.
Use this method if you overbill a client and need to reduce the amount of revenue expected. This method for writing off bad debt is typically considered an invoice adjustment as opposed to a bad debt.
To write off a bad debt using a negative invoice, complete the following steps:
- From the Vision Navigation menu, click .
- In the Transaction Type field, select Invoices.
- Click New to create a new invoice transaction entry file.
- Complete the information on the New File dialog box and click OK.
- On the Invoice Entry form, complete the information in the Invoice Number, Project, and Date fields to match the original invoice.
- Click Insert to add a line to the Invoice grid.
- In the Invoice Section field, select the section where the amount to be written-off appeared on the original invoice.
- In the Account field, enter the original revenue account(s) used for the invoice, or a revenue account created especially for write-offs. Special accounts allow you to isolate write-offs on the Income Statement, letting you see the total amount of write-offs for the period. This account must be created in the Chart of Accounts Info Center.
- In the Amount field, enter the amount to be written off as a negative number.
- Click Save. The net result is a debit to the revenue account(s), and a credit to the Accounts Receivable account.