How to create a journal entry to Write off Overpayments and Bad Debts
How to create a journal entry to write off overpayments and Bad Debts.
Journal Entry for Overpayments or credits never taken
1. Click on Sales
2. Click on Ledger
3. Click on Sales Journal Invoice
4. Click Ok
Select the account you wish to do the journal for
In this instance the customer has paid an invoice and also taken the credit against it, so it was overpaid by the credit amount.
1. Enter reference
2. Enter the date you wish to have on the entry if other than the day of enter.
3. Enter description
4. Enter the amount of the overpayment inclusive of VAT
5. Click on Nominal tab
1. Fill in the description
2. Enter the nominal code you wish the write off to go into.
3. Click on confirm
when you go back into the ledger card, you will see the amounts can be allocated against one another now.
1. Highlight the credit entry and the allocate button will ungrey
2. Click on allocate
3. Click on the entry you wish to allocate the credit against and click allocate
Once that is allocated the available amount to allocate will be zero and the credit amount will no longer appear on any future statements
To create a journal entry for Bad Debts, Follow the above steps, but instead of SJIN it will be a SJCR at Step 1 no 3
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