You would generally be doing this if you do not expect to get paid for some reason. Your advisor will give you the best direction regarding when and how to write off sales to a customer.
- Load the original sale you wish to write off.
- Click Duplicateto make a copy of this transaction.
- Enter the transaction date as that which you intend the write-off to be accounted for.
- When the new sale is loaded, change the sign on the amount for each line item to the opposite sign for each line item. I.e. change a positive amount to a negative one.
- Choose an appropriate account (instead of the income account) if required for each line item. Depending on the nature of the transaction it might be an expense account such as bad debts. Alternatively you can leave it against the income account in order to reverse the income. It depends on the legal treatment of the transaction for which you are best to get advice from your accountant. I.e. it might be a bad debt, cancellation, refund, etc.
- Save the transaction.
- Select Add > Sale Payment.
- Apply a payment to each of the original sales and the new negative sale amount. This will autocalculate $0 cash settlement at the bottom of the payment.
- Save this sale payment.
The net result is nil cashflow on the same date. However, both transactions are now paid and cleared from the receivables area in Saasu. The loss/expense or reversed income is now also accounted for.
