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• # 116331
• Mon 19 Feb 2018 11:57 AM

Hello,

I have a couple of bad debts to process as at year end 2017 in Xero, one that was later part paid during Sept qtr and the other paid in full in Dec quarter. To record the bad debts, I have processed a credit note against the original sale using the same account code and tax rate, and then journalled the sale amount to bad debts using the "No Tax" code. The accountant has requested I treat these outstanding amounts as bad debts to write off as at 30^th June, 2017, and when payment/part payment is received after 30^th June, receipt payment as I would with any other customer. 

I'm a bit confused as I no longer have outstanding invoices for these amounts to apply the CN/bad debt to. And how would I go about receipting the payment for an invoice that is no longer outstanding? I am also conscious of not wanting to mess anything up in the previous quarter's BAS.

Thanks in advance for any advise.

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• # 116333
• Mon 19 Feb 2018 09:59 PM

Hi

I am not sure how you would do it in Xero but I normally reverse out the original credit and then apply the payment to the original invoice

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