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How to write off debt (General)

posted by Gregory West(R) E-mail, Manitoba Canada, 27.06.2015, 13:32

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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