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RubiconCSL(R)

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Somerset, UK,
26.03.2015, 05:37
 

How to write off debt (General)

Firstly, I am not an accountant; I'm simply using SQL Ledger to generate and keep track of invoices. So I'm probably not using a fraction of what it can do and (even after years of using it) I'm no expert!

So, a few years ago, I issued an invoice, which for reasons best not discussed here, was never paid. Whenever I run the report for invoices still due, it comes up and will I guess forever. My accountant has long since written this off (it's only a few pounds anyway). But, it just annoys me and doesn't rest easily on the eye. So how do I simply write off the outstanding amount as never going to be paid?

I'm using 2.8.24, which I realise is probably well due for an upgrade. But, I'm sure the process I'm looking for must be the same.

So how do I do it?

Thanks.

---
--
Dominic Raywood
Rubicon Computer Services Limited
W: http://rubiconcsl.com

Dieter Simader(R)

17.04.2015, 15:18

@ RubiconCSL

How to write off debt

Firstly, I am not an accountant; I'm simply using SQL Ledger to generate
and keep track of invoices. So I'm probably not using a fraction of what
it can do and (even after years of using it) I'm no expert!

So, a few years ago, I issued an invoice, which for reasons best not
discussed here, was never paid. Whenever I run the report for invoices
still due, it comes up and will I guess forever. My accountant has long
since written this off (it's only a few pounds anyway). But, it just
annoys me and doesn't rest easily on the eye. So how do I simply write off
the outstanding amount as never going to be paid?

I'm using 2.8.24, which I realise is probably well due for an upgrade.
But, I'm sure the process I'm looking for must be the same.

So how do I do it?

Thanks.

pay for the invoice and add an offsetting GL entry for the Bad Debt. If you don't want this to show up in a regular bank account then create a separate payment account.

RubiconCSL(R)

Homepage

Somerset, UK,
18.04.2015, 10:16

@ Dieter Simader

How to write off debt

Thanks Dieter.

I am quite A basic user really and not too savvy with accountancy terms.

So do you mean put a "pretend" payment through SQL Ledger i.e. add it to SQL Ledger, but it doesn't really happen in real life?

Where do I do the "offsetting GL entry"?

Thanks

Firstly, I am not an accountant; I'm simply using SQL Ledger to generate
and keep track of invoices. So I'm probably not using a fraction of
what
it can do and (even after years of using it) I'm no expert!

So, a few years ago, I issued an invoice, which for reasons best not
discussed here, was never paid. Whenever I run the report for invoices
still due, it comes up and will I guess forever. My accountant has long
since written this off (it's only a few pounds anyway). But, it just
annoys me and doesn't rest easily on the eye. So how do I simply write
off
the outstanding amount as never going to be paid?

I'm using 2.8.24, which I realise is probably well due for an upgrade.
But, I'm sure the process I'm looking for must be the same.

So how do I do it?

Thanks.

pay for the invoice and add an offsetting GL entry for the Bad Debt. If you
don't want this to show up in a regular bank account then create a separate
payment account.

---
--
Dominic Raywood
Rubicon Computer Services Limited
W: http://rubiconcsl.com

Dieter Simader(R)

18.04.2015, 17:34

@ RubiconCSL

How to write off debt

Thanks Dieter.

I am quite A basic user really and not too savvy with accountancy terms.

So do you mean put a "pretend" payment through SQL Ledger i.e. add it to
SQL Ledger, but it doesn't really happen in real life?

Where do I do the "offsetting GL entry"?

Thanks


It is not just a "pretend" payment, this is the way you write off an invoice. Create a payment account "Bad Debts" and use the account to pay for the invoice. A Bad Debts account is an expense account, you also have to set this account as a payment account or it won't show up in the list of accounts available for payments.

Gregory West(R)

E-mail

Manitoba Canada,
27.06.2015, 13:32

@ Dieter Simader

How to write off debt

Thanks Dieter.

I am quite A basic user really and not too savvy with accountancy terms.

So do you mean put a "pretend" payment through SQL Ledger i.e. add it to
SQL Ledger, but it doesn't really happen in real life?

Where do I do the "offsetting GL entry"?

Thanks


It is not just a "pretend" payment, this is the way you write off an
invoice. Create a payment account "Bad Debts" and use the account to pay
for the invoice. A Bad Debts account is an expense account, you also have
to set this account as a payment account or it won't show up in the list of
accounts available for payments.
This what Deiter is trying to say is pay off the debt into say Petty Cash. Let say the debt is 20 pounds. So when you have paid off the debt into Petty Cash Petty Cash will have in SQL Ledger 29 pounds more than it does in real life. Now to fix that do a GL entry:
Bad Debt Expense - Debit 20#
Petty Cash - Credit 20#

Now your books are accurate.

---
Gregory A. West
DB&W Systems Limited

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