To use a customer credit to remove a customer's bad debt
If you haven't already read the Customer Credits Overview, see Handling customers' bad debt for more information.
- Create a new account named Bad Debts and assign it an expense account type. See Creating accounts for more information.
- Use the Sales window to create a miscellaneous sale for the customer. See Entering sales for more information. For each of the customer's outstanding debts, enter a line item with a negative value, using the Bad Debt account you created in step 1 in the Allocation Account column in each line item.
When you're finished, click Record. The transaction you've recorded is called a customer credit.
- Click the Sales Register option in the Sales Command Centre then click the Returns & Credits tab.
- Highlight the customer credit you created in step 2.
- Click Apply to Sale. The Settle Returns & Credits window appears.
- The customer's open sales appear in a scrolling window. Enter the amount of each open sale in the Amount Applied column.
- Click Record. All the customer's bad debt is cleared.