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:

  1. From the Vision Navigation menu, click Transaction Center > Transaction Entry.
  2. In the Transaction Type field, select Invoices.
  3. Click New to create a new invoice transaction entry file.
  4. Complete the information on the New File dialog box and click OK.
  5. On the Invoice Entry form, complete the information in the Invoice Number, Project, and Date fields to match the original invoice.
  6. Click Insert to add a line to the Invoice grid.
  7. In the Invoice Section field, select the section where the amount to be written-off appeared on the original invoice.
  8. 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.
  9. In the Amount field, enter the amount to be written off as a negative number.
  10. Click Save. The net result is a debit to the revenue account(s), and a credit to the Accounts Receivable account.