How to Write off Invoice in QuickBooks

Write off Invoice in QuickBooks

QuickBooks provides you may opt to make your business more easy and advanced. One of the toughest tasks is getting money from your clients, which also affects your business if you don’t get the money on time.  Sometimes many customers don’t pay for a long time and in that case, you can’t do anything. But yes, you can write off Invoice in QuickBooks. The steps to writing off Invoice in QuickBooks are very essential to maintain the accounts receivable and net income. Let’s look out the below article which informs you how to write off in QuickBooks.

What is the Necessity of Method for Writing off Invoice in QuickBooks

Whatever the reasons for the customer is not paying you, but you should maintain the record for the same. Some of the reasons are mentioned below.

  • Deleting an unpaid invoice means you are deleting the important data, which might help you to deal with the same customer in the future.
  • While writing of invoice percentage you need to maintain a check.
  • Always instead of writing off, if you delete the data it means you are creating a mess to your Sales tax payable liability account.
  • Deleted invoice is shown as unbilled and it comes whenever you work with the customer. It leads to a lot of confusion happens.

Also Read : How to Enter Expenses in QuickBooks

How to Write off invoice in QuickBooks Desktop?

If you are trying to write off an invoice in QuickBooks Desktop, follow these simple steps:

  • Open the QuickBooks Desktop on your system and go to Customers from the top menu
  • Select Customer Center
  • Once a new window opens, add the customer’s name on the left
  • Select the invoice from the list and click on Customers again
  • Now, choose Create Credit Memo/Refunds
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  • Once the “Credit Memo” window opens, enter the customer’s name. Also, include the date when you are writing off the invoice. This will automatically show in the credit memo number.
  • Next, select Item and click Add New. Choose Other Charge as the type and enter Bad Debt in the Item Name/Number space. For Account, you’ll want to select your bad debt expense account (if you don’t have one, you can create it on the fly, too.)
  • Remove the check for the “Is Taxable” option and press Save and Close
  • Here, put the pretext amount of the unpaid or bad debt.
  • Select the invoice you wish to write off.
  • Then, select the “Use credit to apply to invoice” located on the top.
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  • Click the “Save and Close” button.

How to write off invoice in QuickBooks Online?

To use the write off invoices feature in QuickBooks Online, you have to use the Write Off Invoices tool. This tool is accessible to Accountant users. Below mentioned is the step by step guide to write off invoice in QuickBooks Online:

  • Select Accountant Tools
  • Now, click on the Write off invoices option
Write off invoices
  • Adjust the To Date, Balance less than, and Invoice Age and hit Find Invoices to look for the invoice
  • In the Customer column, check the name
  • Press the checkboxes with the invoice that you want to write off
  • Next, select the Write off option.
  • From the “Account” dropdown, choose the account you want to use for the bad debts
  • Finally, press the “Apply” button

Steps to Record Unpaid Invoice

Points to Add Expense Account for Tracking Wrong Debit.

  • Go to Lists menu >>> select Chart of the Account option
  • Select Accounts >>> Go to New menu
  • Now, select Expense >>>> Continue
  • Give a relevant account name in the Account Name field
  • Finally Save and close

How to Close the Bad Debt/Unpaid Invoices

  • Go to Customer menu >>> select Receive Payments
  • Mention the customer name for which you are willing to write off an Invoice in QuickBooks in Receive from the field.
  • Go to the payment amount and  type $0.00
  • Go to Discounts and Credits
  • At last click on Save and Close

Also Know : How to Set up Chart of Accounts in QuickBooks

Final Words

Hopefully above information for “How to write off Invoice in QuickBooks “help you a lot. For any queries, help dial and get connected with the QuickBooks experts. The team is available 24*7 to provide you effective resolutions with prompt response. QuickBooks team is highly trained, certified, and has many years of experience, this makes sure that you are in the right hand and will be getting quality services. You can also email at support@accountinghub.co or fill the contact form to get a call from one of our QuickBooks executives.


Frequently Asked Questions

Q1. Can I write off an invoice in QuickBooks Online?

Ans –Absolutely! You can write off an invoice in QuickBooks online just like you can do it in QuickBooks desktop version. If you wish to write off an invoice in QuickBooks online, just create a customer, go to the bad debt field and add the item in bad debt, and write off the invoice.

Q2.When do we need to write off unpaid invoices in QuickBooks?

Ans – You would need to write off an unpaid invoice in QuickBooks if, for some reason, a customer hasn’t paid you the amount they owe. This will help you avoid sales tax liability and at the same time, it will save the customer or the product information.

Q3. What if we delete the invoice rather than using the write off feature?

Ans – It is important to note that if you delete an invoice rather than writing it off, it will also erase the customer and product information. This is why it is suggested to write it off rather than erasing it permanently.