To use a customer credit to remove a customer’s bad debt

If you haven’t already read the Customer Credits Overview, see Using customer credits to remove customers’ bad debts for more information.

  1. Create a new account named Bad Debts and assign it an expense account type. See Creating accounts for more information.

  2. Use the Sales window to create a miscellaneous sale for the customer. See Entering sales invoices, quotes and orders for more information. For each of the customer’s outstanding debts, enter a line item with a negative value, using the Bad Debt account you created in step 1 in the Allocation Account column in each line item.

    When you’re finished, click Record. The transaction you’ve recorded is called a customer credit.

  1. Click Settle Returns & Credits in the Sales Command Center. The Returns & Credits view of the Sales Register appears.

  2. Highlight the customer credit you created in step 2.

  3. Click Apply to Sale. The Settle Returns & Credits window appears.

  4. The customer’s open sales appear in a scrolling window. Enter the amount of each open sale in the Amount Applied column.

  5. Click Record. All the customer’s bad debt is cleared.

Keyword: credit invoices

To use a customer credit to remove a customer’s bad debt