Writing a Client Invoice off for Bad Debt or Non-Payment

Modified on Mon, 17 Jul 2017 at 02:22 PM

In the instance that a client refuses to pay an invoice you have sent them or an invoice has been outstanding that you wish to write-off, you will enter an Adjustment to this invoice.

***Adjustments should NOT be used to remove an invoice created by mistake, or to give credit to a client.



To Adjust a Client Invoice in ProCloud: (see lower below for DM2011)

  • Go to A/R – Client Invoices - Existing tab
  • Find and Highlight the Invoice to Write-off
  • Choose the Adjust button (bottom left)


The Invoice Adjustments window will appear

  • Select Add


The Invoice Adjustment window will appear

  • Enter/Edit the Fiscal Month and Date that you wish to write the invoice off as of
  • Enter the G/L Account to use to write the invoice off to. Typically, a Revenue account is used in this situation; if you do not have an appropriate account to use, you can add a new one to your Account Glossary                                        - To Add a new account, Click into the G/L Account field and choose the Search  button


                 


                    - Choose Add to Add a new Account – see example below


                 

    

                    - Enter an Account No. and Name and choose Revenue as the Account Type

                    - Choose OK to close the new Account window

                    - Then Select the Choose button to use this account for the Adjustment


  • Enter a Transaction Description – if you would like
  • In the Adjustment field, type in the amount that you are writing off, typically this is the same as the Balance Due; however, the Adjustment amount should be a negative amount



  • Once the Adjustment has been entered, choose OK

You will now see the Adjustment listed under the Existing Invoices tab for that invoice.




To Adjust a Client Invoice in DM2011:

  • Go to Documents & Accounting
  • Find and Highlight the Invoice to Write-off
  • Choose the Adjust button


The Invoice Adjustment window will appear

  • Select the Adjust Invoice Amount box
  • Enter/Edit the date that you wish to write the invoice off as of
  • Enter the G/L Account to use to write the invoice off to. Typically, a Revenue account is used in this situation; if you do not have an appropriate account to use, you can add a new one to your Account Glossary
    • Click into the G/L Account field and choose the Search  button

  • Choose Add to Add a new Account – see example below



  • Enter an Account No. and Name and choose Revenue as the Account Type
  • Choose OK to close the new Account window
  • Then Select the Choose button to use this account for the Adjustment
  • Enter a Transaction Description – if you would like
  • In the Adjustment field, type in the amount that you are writing off, typically this is the same as the Balance Due; however, the Adjustment amount should be a negative amount


  • Once the Adjustment has been entered, choose OK

You will now see the Adjustment listed under the Paid/Closed Invoices folder for that Project in Documents & Accounting.


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