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Posted by SueM

Write off unpaid invoices

A customer has stopped trading and there is an outstanding invoice that won't be paid. I looked for a way to change the invoice's status to 'Write Off' but it is not available. I can include this amount manually when I file my tax accounts but it would be nice to record it on Easify. Is there anything I've missed?

Posted by Alison

Re: Write off unpaid invoices

You can add new Order Types under Tools/Options/Orders & Quotes/Order Types, so you could add a new order type of 'Write off' and then assign the order to it.

Posted by Rasp

Re: Write off unpaid invoices

What would be the exact procedure to write off an unpaid Sales Invoice that will ensure that the unpaid VAT element is recovered using MTD

Posted by James

Re: Write off unpaid invoices

Apologies for the delay in getting this information to you. Here is the recommended approach:

1 Add a new product

  • Firstly, ensure that the category in which you create the product is VATable. You can check this under Tools -> Options -> Purchases.
  • Name the product "Bad Debt" and disable stock control for it.

2 Create a new order and add the Bad Debt product to it

  • Add a comment i.e "Bad Debt to be written off" or similar
  • Make the value of the product a minus figure (i.e change the Price Ea. to be a minus figure)
  • Add the customer who has not paid to the order

3 Tick the Invoiced box and make sure that the Invoice Date is inserted otherwise it won't be included on the VAT Return for that period

4 Move the order status to "Complete"

This will then ensure that the VAT element will be subtracted from the Sales VAT when you file your next VAT Return.

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