To use a customer credit to remove a customerís bad debt

If you havenít already read the Customer Credits Overview, see Using customer credits to remove customersí bad debts for more information.

  1. Create a new account named Bad Debts and assign it an expense account type. See Creating accounts for more information.
  2. Use the Sales window to create a miscellaneous sale for the customer. See Entering sales invoices, quotes and orders for more information. For each of the customerís 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 youíre finished, click Record. The transaction youíve recorded is called a customer credit.

  1. Click Settle Returns & Credits in the Sales Command Center. The Returns & Credits view of the Sales Register appears.
  2. Highlight the customer credit you created in step 2.
  3. Click Apply to Sale. The Settle Returns & Credits window appears.
  4. The customerís open sales appear in a scrolling window. Enter the amount of each open sale in the Amount Applied column.
  5. Click Record. All the customerís bad debt is cleared.

Keyword: credit invoices

To use a customer credit to remove a customerís bad debt