If a customer balance will never be paid or cleared then it may be necessary to write it off as bad debt. This will clear the balance from the customer account and post the relevant accounting.
Writing off an invoice
Brightpearl doesn't currently provide a small balance write-off routine but there is a solution to write it off manually and clear the bad debt from the customer account.
How to write-off a balance as bad debt using an adjustment
The following steps provide the quickest way to write-off account balances where no payment needs to be recorded:
- Search for the customer and navigate to the Payment Allocation screen.
- Identify the invoice with a balance to be written off. Enter the whole amount to be written off into the Adjustment field.
- Select the account code to which the balance needs to be written off to using the "Adjustments" drop-down menu. Only account codes with "Allocate discounts to this account?" set to "Yes" will be available to select here.
- Click Submit.
A journal is posted to write the balance from the account.
How to record bad debt using a quick credit
- Go to Customers > Quick Credit .
- Search for the customer (only primary customer contacts are searchable).
- Enter a note in the details section to record this as a bad debt write-off.
- Enter the Net Amount.
- Select the correct tax code to calculate the tax and total values.
- Select your "bad debt" nominal code (you may need to create one).
- Click the Enter Credit button.
You then need to allocate this credit to the outstanding invoices on the customer's account so that they no longer appear on your aged debtors listing.