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How do I record bad debt or void an Invoice?

Bad debt is when you have done work and created an Invoice for a Client, but that Invoice will never be paid. How do you write this Invoice off as bad debt? What if you need to void an Invoice?

Answer: Use a negative line item to bring the Invoice value down to zero, and keep track of bad debt or void items using the “Item Sales” Report.

  1. Find the Invoice that will never be paid and “edit” it
  2. Create a negative line item called “bad debt” or “void” or something that you will recognize
  3. Assign the item a unit cost that is the negative equal to the total amount of the Invoice. Set the quantity to 1
  4. Be sure that the total amount outstanding remains at $0.00 so that you aren’t always expecting to be paid money for this Invoice

So now that you’ve written off the Invoice to $0.00, how do you find bad debt in your Reports? Use the Item Sales Report!

  1. Go to the “Reports” tab and open up the Item Sales Report
  2. You can filter your list of items to only show “bad debt” or “void
  3. All of the bad debt items will be shown with their appropriate negative amounts, too
  4. Like all other reports, you can export this to a .csv file or and Excel file.