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Correct way to write off bad debt (with VAT) in Quickbooks.

  • 16 posts
  • # 81732

Hi


I trained on Sage but I am now dealing with a client who uses Quickbooks. A steep learning curve but now have a bad debt to write off. I have seen different bits of advise; all different but want to do it correctly.


Many Thanks

Sandra     
Wilbur
  • Member
  • Practice Licence
  • 106 posts
  • # 81802

I would like to know the answer to this also, shame no-one seems to know.
Have you tried the Intuit online community? 

  • Too old to die young...


  • Quote
  • 16 posts
  • # 81803

I've tried everything! The help section explains it all but won't let you do it when you try to exit. The accountant says bypass it by raising a credit memo. Okay....... but it then wants to post the gross amount to the customer. I can't find a way of splitting net to bad debt and VAT to VAT account whilst clearing the customer account.
 

And also today I've found credit notes from suppliers that have been entered twice on the system. How to get rid of them? Any ideas? Again followed instructions but they're still there! (thought about entering phantom invoices for the same amount and then allocating them to those! Cheating or what?) Client did say he would be happy to get me Sage but I hate to be beaten.  
Julie T
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  • 27 posts
  • # 82004

I have had a few problems with Quickbooks because if there are old errors, but still within the working financial year, the people on the end of the phone at Quickbooks tell you to make a backup and then delete the original entry!! This is so not right because of how it effects the VAT but they do not seem to understand this!! I find it soooo frustrating talking to them! Sorry that doesn't answer your question but I feel better for my little rant! Laughing
  • 153 posts
  • # 82010

I journal it, with three lines: accounts receivable, bad debt and VAT control (there is a field for which type of VAT entry it is eg 20% VAT on sales). You then have to go to the invoice and apply the credit you've created to that invoice.

For the credit notes, if they were current period I would just delete them but if not, again I would would journal it and then apply the entry against the credit note. 
Stardoe
  • Member PM.Dip
  • Practice Licence
  • 194 posts
  • # 82019

I do it the same way as Ruth, with a journal.  You have to make sure you assign a VAT item to each net amount (i.e. VAT control and bad debt lines).  You then have to go back to the customer account and allocate the credit part of the journal to the invoice.


Pauline
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