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What should I do with invoices that my customers are not going to pay?

If you have an invoice on which the customer will not pay the total, or partial, amount, you can clear out the relevant invoice.

Clearing Out the Invoice with a Partial Payment

If you have an invoice in “partial” status, as in the following example, you must create a credit note with which you clear out the remaining amount. Below is a step-by-step guide.

Bildschirmfoto_2019-04-24_um_09.22.16.png1.Make a note of the outstanding amount on the partially paid invoice. You must have this accessible for the credit note.

2.Create a credit note for the outstanding amount, with the relevant date.
Tip: It’s easier to change the price option to "gross" in the credit note settings.                   

Bildschirmfoto_2019-04-24_um_09.22.16.png3. The credit note must be set to "outstanding" and offset against the partially paid invoice.

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After you have set off the credit note with the invoice, the invoice amount will be settled and the remaining amount will be cleared out correctly.

Clearing Out the Entire Invoice

Open the relevant invoice and the “Reminders” tab. On the bottom right you will see the option "Set invoice to unpaid".

By clicking this option, the invoice will be cleared out at the current date. The status of the invoice will change to "Unpaid". If you would like to choose the date yourself, you need to complete the process with a credit note, as described above.

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What Will be Booked?

Clear Out the Invoice with a Partial Payment

A reverse posting is performed against the income account selected in the credit note and the vendor's account (accounts receivable).

Clear Out the Entire Invoice

A reverse posting is automatically performed against the income account selected in the credit note and the vendor's account (accounts receivable).

Can I Post an Accounts Receivable Loss?

If you want to post the clear-out as an accounts receivable loss, you have to repost it via a manual booking. If you are not sure how to process such a booking, we recommend that you discuss it with a trusted financial professional or trustee.

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