Hi, all. What's the best way to deal with bad debts?
For instance, I currently have one old, uncollectible invoice. It shows up among the outstanding invoices. Since I don't expect to ever receive payment on this, I'd like Studiometry to essentially ignore it. But I'd prefer not to enter an offsetting phony payment that makes the customer look good, while incorrectly inflating my income.
What do the rest of you do in cases like this?
Thanks in advance. ...pt
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4 comments
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Rob Sherrard - Imageer While it really is still an offsetting phony payment, I created a Debt/Credit Type called Write Off of Type Credit. When I finally lose all hope of ever getting paid, I open the Edit Invoice window and use the Add Invoice Adjustment… button to create an offsetting Write Off discount to zero out the amount owing. Because it has it's own unique Type it's easy to Search the Debt/Credits or create a Custom Summary to locate any instances of Write Off.
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Philip Tobias Yours seems like a reasonable approach, Rob. The custom credit type would help identify the special situation.
Do any other Studiometry users handle bad debts differently?
Thanks. ...pt
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Oranged Support Thanks for the response, Rob. Rob's method is generally what we recommend to users wanting to write off bad debt, especially due to the ability to search/filter reports by debt/credit types later.
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Philip Tobias Thanks, folks. I took Rob's suggestion and created an invoice adjustment with a new credit category of Write-Off. While I was at it, I created a new project category to indicate this one was a Write-Off and a new client category for a Deadbeat.
So no matter how I stumble across this invoice, project, or client, I will have a clear indication of the status. And if a payment ever arrives (some people still believe in Santa Claus), I can easily readjust.
Thanks again. ...pt
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