How we add written-off (bad debt expense)

Written off, also called bad debts. Bad debts mean the amount of money you were supposed to pay to a supplier, but now it will never be paid. 

In simple words, bad debts stand for money you were supposed to pay to a supplier that will no longer be paid, so the system automatically marks that amount as bad debt or written off. 

For example, the supplier closed the account, the supplier forgot the amount, the supplier disappeared, or there is an old outstanding balance that cannot be paid. 

Click on “Written Off” Option 

• First click on the written-off option, located in the add payment section (given in the action button) in the bill. Click on it, and a pop-up window opens in front of you. 

• First enter the date on which written-off bills occur in the system. 

• Then enter the written-off/Bad debt amount and select your currency, e.g., AED. 

• The system already shows you the accounting category of the account, such as written-off income. 

• Write a short description in the given space. E.g., the AED 1000 amount has been recorded as bad debts payable. 

• Then click on the submit button and save the information. 

• Once you submit the information, payment will be displayed in the given payment history. 

Delete—You can also delete these payment bills from the payment history section. 

• There is a red icon given on the right side of payment bills. You can click on it and delete the information if it is not needed.