Summary
From time-to-time you'll have a delinquent customer who won't pay.
Key Points
Write off those Invoices as Bad Debt -or
Add a line to the Invoice with a negative number equal to the amount
Edit the invoice
Click the Write off as bad debt check box at the lower right corner of the page**
-OR-
Add a line item with OTHER as the Type
Type in the description Credit Memo
Use the price with a negative number to offset the amount owed to zero the invoice
** Using the Bad Debt check box is preferred if you're interested in tracking these Invoices in our reports.
Use Reports > Invoice List to find bad debts.
Filter the date range
Click Add Filter
Click Status
Select Bad Debt
Note When you write off a customer as bad debt you will need to hire a collection agency to collect the bad debt. The Bad Debt status in the system is so you can identify which accounts are being sent to collections.
Update the customer's status from Active to Sent to Collections
Edit the customer's billing page
Click Active
Select Sent to Collections
Click Save
Also see: Financial hold - what does it do?