Writing off uncollectable invoices in GP–Accounts Receivable module

Knowing the correct way of writing off uncollectable invoices in Great Plains can save time in the future when companies are analyzing and investigating their customers’ timely payments. Ability to see historical records of payments and non-payments can help companies to set holds on such customers’ accounts.

  1. Create credit memo for the open amount of the invoice
  2. Within credit memo click distribution button: Debit A/R allowance account and Credit A/R account
  3. Apply Credit memo to the open invoice
  4. Post your batches to the sub-ledger and GL

Writing off uncollectable invoices with credit memo will provide customer history in the inquiry window. For example, if a user voids the open invoice, he or she won’t see any explanations in the customer history inquiry window. It is a good idea to keep this information in the customer history transactions, so that it will be easier to identify potential issues in the future.

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