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

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.