Paying Off Bad Debts
Once in a while you will have an account that owes you money but that you don’t have any hopes of ever collecting from.
If you want to get rid of this amount from your books, you must pay off the debt using the A/R option “Enter a “Bad-Debt” Credit.”
Once you select this option, the following screens will be displayed…
Enter the account number or name…
flowerSoft will tell you how many open charges it finds and then…
It will ask you for a description, although you probably will not send a statement to the customer.
It will credit the outstanding amount of the outsanding charges and it will then suspend the account.
The “bad credit” goes into the books as a sales allowance with its corresponding sales tax allowance.
So that is how you get rid of old debts in flowerSoft.