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Mark or restore a bad debt ​

When to use it ​

Use this guide when you need to mark or restore a bad debt.

Before you start ​

  • Open Accounts Receivables from the module menu. Your account must have access to this screen and permission for the action you want to complete.
  • Confirm the decision with the responsible finance reviewer before changing the classification.

What this changes ​

The invoice’s bad-debt classification is updated.

Reports and statements show recorded balances. Bad-debt marking changes the invoice’s classification, not whether cash was received.

Steps ​

  1. Find the invoice and check its customer and outstanding balance.
  2. Use Mark as Bad Debt when the debt has been assessed as uncollectable.
  3. If that assessment changes, use Restore from Bad Debt.
  4. Check the resulting invoice status and balance reporting.

Screenshot placeholder: Accounts Receivables: mark or restore a bad debt.

Screenshot to add: Accounts Receivables: mark or restore a bad debt. Capture filename: images/mark-or-restore-a-bad-debt.png.

Restrictions ​

Receivables add/edit access is required. This classification is separate from receiving a payment or issuing a credit note.

If something went wrong ​

After an unclear status change, reopen the same invoice and check its bad-debt classification before repeating it.

If the wrong invoice was marked, use Restore from Bad Debt after Finance review. If it was restored incorrectly, use Mark as Bad Debt only after the assessment is confirmed. A classification change does not record a payment or issue a credit.

Check the correction ​

Check the intended invoice's classification and balance reporting. Review any collection decisions or shared reports based on the earlier classification separately.